How to leg into a no loss Iron condor

Discussion in 'Options' started by tos_user, Mar 2, 2017.

  1. tommcginnis

    tommcginnis

    Just for clarity, it's not really us that determines buying or selling -- it's an artifact of the construction of the platform on which we're trading + the method of constructing the combination.

    For my own [tiny, little] brain, it's just a dissonance that I don't need, to be working "negative" prices while attempting to "buy" a "bullish put" spread. Written via a different method, I'm suddenly dealing with *positive* prices while *selling* a "bearish put" spread for a credit -- just two or three less things I need to translate while trying to work.

    That said, for a broken-wing butterfly, I have to "buy" it for a negative (credit) price, and possibly then "sell" it for a negative OR for a positive price later. I can deal with that, because my mind can hold the BWB as [buy front 5W; sell back 10W] in my head.
     
    #11     Mar 9, 2017