10 Minute Read

Tackle Today: Iron Condors Comin’ in Hot

March 25, 2022

By | No Comments

«3 reasons why they make money.»


Coach Tyler here.

We’re putting the finishing touches on Monday’s YouTube webinar on the mighty Iron Condor strategy. To prepare you, let’s review three reasons why condors on Indexes make money over time.

① First: Options are overpriced due to investors’ willingness to overpay for insurance. There’s a persistent gap between how much movement options are pricing in (e.g., implied volatility) and how much the market actually moves (e.g., historical volatility). That gap is where the condor’s edge lies.

② Second: You profit from the passage of time. This dynamic is nice because it means you don’t have to guess the direction of the market’s next move. Sidestepping directional betting is a welcome change to those who find forecasting movement to be harder than they thought.

③ Third: The market’s natural mean-reverting tendencies work to the advantage of the iron condor. Prices are like rubber bands. When stretched too far in one direction, they have a tendency to come back – especially on Indexes. This rangebound action keeps prices in the condor’s profit range. We’ll be highlighting how to properly build condors on Indexes in Monday’s class. Join us!

🛑 Upcoming Options 101 Webinar: Iron Condor for Beginners with Coach Tyler Craig | March 28th, 2022 at 8:30 PM EST on YouTube

Join Coach Tyler Craig as he teaches everything you need to know to get started with trading Iron Condors for monthly cash flow. As the architect of Tackle Trading’s Cash Flow Condors system, Tyler brings a wealth of knowledge on the topic and will break down this popular strategy in simple, easy-to-understand terms.

In this webinar you will learn:

✅ What is an Iron Condor
✅ How to Build an Iron Condor
✅ Why Iron Condors Make Money
✅ Best Practices for Trade Management
✅ The Ideal Stock to Use

Video of the Day: How to Build an Iron Condor (Using the Tackle Theta Spreadsheet)

Coaches Tim, Noah, and Cody teach students how to build out an Iron Condor using the Tackle Trading Options spreadsheet.
▶ You can find the Options Spreadsheet here.

Chart of the Day: Sizzling Semiconductors ($SMH)

Chart of the Day - Sizzling Semiconductors ($SMH)

Semiconductors took flight Thursday with the likes of NVDA, AMD, AVGO, and INTC rocketing to the moon. This is yet another sign of the market’s improving health. Chip stocks don’t run unless risk appetite is on the rise.

Today’s Blog

Options Theory: How to use ThinkorSwim Analyze Tab

Today’s video walks through how to use the risk graph and other features of ThinkorSwim’s Analyze tab. I also go through how to model your entire portfolio.

Today’s line up

Traders Lounge 11 AM EST

Join the coaches in this live lounge, ask questions, discuss ideas or just sit back and listen to veteran traders discuss market conditions.

Cash Flow Club Replay

If you missed last night’s episode when Coach Gino Poore talked about Finding Value Stocks with increasing Value for Covered calls or would like to watch it again, check it out here.

Halftime Report 12:30 PM EST

The Halftime Report starts at 12:30 EST and covers what news is driving the market, chart analysis from the movers and shakers of the day, and fun in a way that only Matt and Tim can deliver.

Tackle Trading: Financial Freedom is a Journey. Sign up now for a 15-day free trial.

Financial freedom is a journey

Sign up now and gain unfettered access to all of the quality content and powerful Scouting Reports that our Pro Members enjoy for 15-days absolutely free with no strings attached and let us show you what your trading has been missing.

Legal Disclaimer

Tackle Trading LLC (“Tackle Trading”) is providing this website and any related materials, including newsletters, blog posts, videos, social media postings and any other communications (collectively, the “Materials”) on an “as-is” basis. This means that although Tackle Trading strives to make the information accurate, thorough and current, neither Tackle Trading nor the author(s) of the Materials or the moderators guarantee or warrant the Materials or accept liability for any damage, loss or expense arising from the use of the Materials, whether based in tort, contract, or otherwise. Tackle Trading is providing the Materials for educational purposes only. We are not providing legal, accounting, or financial advisory services, and this is not a solicitation or recommendation to buy or sell any stocks, options, or other financial instruments or investments. Examples that address specific assets, stocks, options or other financial instrument transactions are for illustrative purposes only and are not intended to represent specific trades or transactions that we have conducted. In fact, for the purpose of illustration, we may use examples that are different from or contrary to transactions we have conducted or positions we hold. Furthermore, this website and any information or training herein are not intended as a solicitation for any future relationship, business or otherwise, between the users and the moderators. No express or implied warranties are being made with respect to these services and products. By using the Materials, each user agrees to indemnify and hold Tackle Trading harmless from all losses, expenses and costs, including reasonable attorneys’ fees, arising out of or resulting from user’s use of the Materials. In no event shall Tackle Trading or the author(s) or moderators be liable for any direct, special, consequential or incidental damages arising out of or related to the Materials. If this limitation on damages is not enforceable in some states, the total amount of Tackle Trading’s liability to the user or others shall not exceed the amount paid by the user for such Materials.

All investing and trading in the securities market involves a high degree of risk. Any decisions to place trades in the financial markets, including trading in stocks, options or other financial instruments, is a personal decision that should only be made after conducting thorough independent research, including a personal risk and financial assessment, and prior consultation with the user’s investment, legal, tax and accounting advisers, to determine whether such trading or investment is appropriate for that user.

Chart Modal

Tackle Trading

Book a FREE Consultation

Sign up for a free consultation to build your Educational Plan.