How To Trade Iron Condors on Robinhood (Passive Income Strategy)

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  • Опубліковано 20 лют 2022
  • The BEST Option Strategy - how I make passive income with iron condors!
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    Over the last few years I’ve tried pretty much all the strategies out there - buying calls and puts, selling covered calls, cash secured puts, strangles, straddles, the list goes on - but the one strategy that I found to be most successful is the iron condor. In today’s video I am going to teach you how to trade an iron condor on robinhood - which is probably the easiest way to learn and get a grasp of everything, especially as a beginner. Now we are going to go through 3 scenarios step by step to make sure everything is covered - first we’ll learn how to open the trade on the app, then we’ll see what happens during the trade and what we should be looking for, and then we’ll take a look at actually closing the trade as I know this is what a lot of people get confused about. We’ll also look at what happens if the trade goes against you and you end up losing on the trade - which is something we should know how to handle. Stay tuned to the end of this video because I will share with you my checklist of steps to follow whenever I place an iron condor trade.
    Now to break it down in very simple terms - when you buy an options you are hoping for directional moves - so when you buy a call you are hoping that the stock goes up. When you buy a put you are hoping the stock goes down. If the stock goes in the direction you want then you will make money by the option contract increasing in value. Now on the flip side - when you sell options you are hoping that the stock does NOT have such a strong directional move - so when you sell calls you are hoping the stock does NOT reach your strike price - when you sell a put you are hoping the stock does NOT drop below your strike price - now you’re not necessarily hoping that the stock goes in the opposite direction but rather slowly move towards the strike price just not surpassing it. Now with an iron condor we are not taking a directional stance on the market. This in fact is a neutral stance by saying that I think the stock or index fund will trade flat and not have crazy directional moves. So with an iron condor what we want to do is pick two points - 1 point above the current stock price and 1 point below the current stock price. So to win this trade we want the stock to trade IN-BETWEEN these two points. If by the expiration date the stock stays in between these two points then you win this trade and make profit. An iron condor consists of 4 separate option trades. We are selling a call where we think the stock won’t reach, we are then selling a put where we think the stock won’t drop below. These are the two points that the stock needs to effectively trade between. We are then buying a call higher than the call we sold for protection, and we are buying a put below the put we sold, again for protection. Now I like to think of these two option buys as a hug around our trade - they are hugging the trade for protection - get it? So that made it easy for me to remember. Ok So when we open up an iron condor we are not paying out any money like we would be when we buy options. We are actually collecting a credit - just like we would be when selling options. So we are receiving a credit for putting on an iron condor trade. Our ultimate goal is for us to collect a credit, and then have the iron condor premium price to drop in value or expire worthless. If it drops in value we can then close the trade and keep the difference which will be our profit. If it expires worthless than we won’t need to close out the trade, it’ll just expire at $0 and you get to keep the entire premium.
    Watch the full video for the live robinhood trades breaking down everything you need to know on how to trade iron condors and make some passive income!
    I am not a financial advisor - none of the above video is meant to be taken as investment advice. I am just showcasing MY own strategy and my investments should not be tried and duplicated based solely off the information in this video for risk of losing money.

КОМЕНТАРІ • 405

  • @orangecrushhex
    @orangecrushhex 2 роки тому +77

    This is the best video you've done so far. These are real world examples of your trades rather than hypothetical ones. Well done!

    • @Trader_Bear
      @Trader_Bear 2 роки тому

      📌Appreciate your feedback and thanks for watching! Don't forget to hit the like, subscribe button and for more guidance.... Note: whats app👇 .pls share,if you think it helps
      ✚①⑥①⑦⑥⑤⑦⑧⑥④⑨
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  • @sm_26_7
    @sm_26_7 2 роки тому +18

    no one on UA-cam explained Iron Condor better than you bro. you did an amazing job. Thanks a lot

  • @mikewhite7044
    @mikewhite7044 2 роки тому +11

    Showing the actual trade is REALLLLYYY helpfull! Thanks a lot man!!!

  • @AboveAverageBob
    @AboveAverageBob Рік тому +3

    This is an amazing visual explanation of the iron condor. I learned a lot. Thank you sir and congrats on the new baby!

  • @astriverofstrengthandknowledge
    @astriverofstrengthandknowledge 2 роки тому +7

    This video made me realize for the first time in my entire experience trading options that it’s actually the bid price that gets your position filled almost immediately instead of the ask price.

  • @jl6301
    @jl6301 2 роки тому +4

    Great video! The visual step by step examples are what people need. Thank you.

  • @expertcomputerhelp
    @expertcomputerhelp 2 роки тому +15

    Alex, well done!!! Your best tutorial yet. I like the way you went through the entire live trade. Excellent. Thank you. 👍

    • @Trader_Bear
      @Trader_Bear 2 роки тому

      📌Appreciate your feedback and thanks for watching! Don't forget to hit the like, subscribe button and for more guidance.... Note: whats app👇 .pls share,if you think it helps
      ✚①⑥①⑦⑥⑤⑦⑧⑥④⑨
      Hit me up me now for other profitable platforms and opportunity for you..

  • @mendyedri2037
    @mendyedri2037 2 роки тому +1

    Man I really like your content! Simply the best

  • @jnti7872
    @jnti7872 Рік тому +1

    The absolute best video on short iron condors. Appreciate it.!!

  • @ohh_mendozuhh
    @ohh_mendozuhh 2 роки тому +3

    Love the quality & style if your videos. Very thorough. Also love that you showed the contract at expiration for 100 % profit. I haven’t seen anyone else show it, so was curious.

  • @LaurinLight888
    @LaurinLight888 2 роки тому +5

    Very helpful video, especially the information on closing the trade. Thanks Alex!

    • @PandreaMoney
      @PandreaMoney  2 роки тому +2

      Thanks Lauren! Yea, I realized that these kind of examples were never shown all the way through so I was excited making this vid! Thanks for watching :)

    • @royalemusicofficial95
      @royalemusicofficial95 Рік тому

      @@PandreaMoney hey man. Just came across your videos last night. And started 3 weeks ago just looking into trading so I’m very amateur here. But my question is, are you looking at patterns, candles, ECT. on charts like “tradeview” to get your valid analysis before selling and buying options? Or do you take the risk off of the percentage of profit (85%) mentioned in the video that robinhood displays and see what happens?

  • @SPYSpreads
    @SPYSpreads Рік тому

    Wow you covered it all 🙏🏼👍

  • @AgWhatsUp
    @AgWhatsUp Рік тому +2

    Just wanna say that through trial and error and also through this and your many videos, I’ve been successfully trading iron condors with low risk strike prices for a monthly, not annual, 5% return on investment. Thank you for your videos, I know you’ve been out of the UA-cam scene for a while now, but I hope you’ll start up again.

  • @reelhawksstudio
    @reelhawksstudio 2 роки тому +6

    The wheel still seems to present a better risk/reward ratio. It's also easier to close. If the stocks go down a lot you can always buy shares to lower your cost basis. If it goes too high you may have to wait a little for stock to come down. If not, you can move with another one and start selling puts to get a new wheel started. However, great content as usual: informative and entertaining!

    • @Trader_Bear
      @Trader_Bear 2 роки тому

      📌Appreciate your feedback and thanks for watching! Don't forget to hit the like, subscribe button and for more guidance.... Note: whats app👇 .pls share,if you think it helps
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  • @bradcondon7896
    @bradcondon7896 2 роки тому

    Really good video. Thank you for the content

    • @Trader_Bear
      @Trader_Bear 2 роки тому

      📌Appreciate your feedback and thanks for watching! Don't forget to hit the like, subscribe button and for more guidance.... Note: whats app👇 .pls share,if you think it helps
      ✚①⑥①⑦⑥⑤⑦⑧⑥④⑨
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  • @akshayukey3864
    @akshayukey3864 Рік тому

    Thanku so much 🎉

  • @sebars4869
    @sebars4869 2 роки тому +1

    Now it's more clear. Thanks bud~

    • @PandreaMoney
      @PandreaMoney  2 роки тому

      Thanks for watching!

    • @Trader_Bear
      @Trader_Bear 2 роки тому

      📌Appreciate your feedback and thanks for watching! Don't forget to hit the like, subscribe button and for more guidance.... Note: whats app👇 .pls share,if you think it helps
      ✚①⑥①⑦⑥⑤⑦⑧⑥④⑨
      Hit me up me now for other profitable platforms and opportunity for you....

  • @Mrsmith42e
    @Mrsmith42e 2 місяці тому

    Excellent video!

  • @Benny_bandit
    @Benny_bandit 2 роки тому +5

    Great video. I just started opening iron condor and I had a tough time understanding screen. This was a great breakdown. If you can do these with more spreads or call/ puts that would be greatly appreciated. Knowledge is power 💪🏾

    • @Trader_Bear
      @Trader_Bear 2 роки тому

      📌Appreciate your feedback and thanks for watching! Don't forget to hit the like, subscribe button and for more guidance.... Note: whats app👇 .pls share,if you think it helps
      ✚①⑥①⑦⑥⑤⑦⑧⑥④⑨
      Hit me up me now for other profitable platforms and opportunity for you..,.,

  • @esperanzagarcia4360
    @esperanzagarcia4360 2 роки тому

    Thanks you very valuable video

  • @kakashisharigan336
    @kakashisharigan336 Рік тому

    Best video on iron condors I've watched

  • @jancintron
    @jancintron 2 роки тому +6

    Thank you Alex! I've been watching you for a few months now and you've been really helpful, but this video tops it! it really helped me understand Iorn Condors better and the examples shown were perfect! I've just been learning these few months but I think next month I will try this for the first time and take action. wish me luck🙏🏽

  • @Happy-bw8vt
    @Happy-bw8vt Рік тому

    Best video so far with iron condo

  • @claudeoshea8425
    @claudeoshea8425 2 роки тому +1

    Great job 👍

  • @vsauce_milkhere
    @vsauce_milkhere 2 роки тому

    great video! you should do video sections

  • @NicksLocker
    @NicksLocker Рік тому

    This is a great video

  • @roiskyroyce9869
    @roiskyroyce9869 2 роки тому +2

    Holy crap. Feels like free money. lol Such an awesome video.

  • @ultimate_bound9496
    @ultimate_bound9496 2 роки тому +2

    Another banger

  • @hernanlebrun7107
    @hernanlebrun7107 2 роки тому +2

    Love your videos Alex, but can you explain risk of assignment and how to avoid that situation.

    • @scottreesetradinginvesting7936
      @scottreesetradinginvesting7936 2 роки тому

      Hey Hernan! I've got a video that takes a deep dive into early option assignment risk if you're interested :)
      ua-cam.com/video/CX9B-qPJmMM/v-deo.html

  • @viralloger267
    @viralloger267 Рік тому

    Safest option strategy ever. If ur not a millionaire doing this I don't know what to say

  • @elizabethjack1417
    @elizabethjack1417 2 роки тому +24

    Because of the economic crisis and the rate of unemployment, now is the best time to invest and make money💵💯

    • @ryantimm2076
      @ryantimm2076 2 роки тому

      You can say that again

    • @bellalilian6303
      @bellalilian6303 2 роки тому

      Stocks are good but crypto is better

    • @kylespirtis4147
      @kylespirtis4147 2 роки тому

      It won't bother you if you trade with a professional like JENNIFER FAN

    • @QiyeWeian
      @QiyeWeian 2 роки тому

      Yeah sure, i heard alot about investments with JENNIFER FAN and how good she is,please how safe are the profit?

    • @scottwalker3060
      @scottwalker3060 2 роки тому

      My first investment with expert Jennifer fan has earned me profit of over $24,540 us dollar and ever since then she has been delivering.

  • @Andy_OvaSeas
    @Andy_OvaSeas 2 роки тому +1

    Another awesome video with great explanations. Could you do some tutorials for different platforms like Interactive Brokers? Thanks and keep crushing it.

    • @Trader_Bear
      @Trader_Bear 2 роки тому

      📌Appreciate your feedback and thanks for watching! Don't forget to hit the like, subscribe button and for more guidance.... Note: whats app👇 .pls share,if you think it helps
      ✚①⑥①⑦⑥⑤⑦⑧⑥④⑨
      Hit me up me now for other profitable platforms and opportunity for you..

  • @Andreyyzuevv
    @Andreyyzuevv 2 роки тому +2

    I feel like I should be paying to watch this, thanks for the knowledge🙌

    • @PandreaMoney
      @PandreaMoney  2 роки тому

      Haha thanks, that means a lot! Glad you got something out of it 🙌🏻

    • @Trader_Bear
      @Trader_Bear 2 роки тому

      📌Appreciate your feedback and thanks for watching! Don't forget to hit the like, subscribe button and for more guidance.... Note: whats app👇 .pls share,if you think it helps
      ✚①⑥①⑦⑥⑤⑦⑧⑥④⑨
      Hit me up me now for other profitable platforms and opportunity for you..

  • @wes4619
    @wes4619 Рік тому

    This is all fine and good but which stocks are the best for this strat

  • @luckysingh-cv3qk
    @luckysingh-cv3qk 7 днів тому

    Hi, I came to this channel recently. But really like the way you explain options. Can you make a video of how to do iron condor in we bull app? Thanks

  • @royalmontpark
    @royalmontpark 2 роки тому

    Watched a lot of your magic videos, so surprised that you have switched to finance LOL. I like to use inverse Iron Condors

    • @Trader_Bear
      @Trader_Bear 2 роки тому

      📌Appreciate your feedback and thanks for watching! Don't forget to hit the like, subscribe button and for more guidance.... Note: whats app👇 .pls share,if you think it helps
      ✚①⑥①⑦⑥⑤⑦⑧⑥④⑨
      Hit me up me now for other profitable platforms and opportunity for you..

  • @viralloger267
    @viralloger267 Рік тому +1

    So u basically doing put credit spread and call credit spread together

  • @dupaacct5956
    @dupaacct5956 9 місяців тому +1

    at 5:23 in the video you said "were going to go ahead and select" and a radio button appeared. Since this seems to be necessary to do I cant follow on my app. Where is this select that allowed radio buttons to appear on your phone? When I hit the strike price the next screen shows up not staying on the same screen and the option you selected 5:43 and a green bar with SPY showing at the bottom

  • @Cris-de6tj
    @Cris-de6tj Рік тому

    I left une question. Why the colateral is grater than the max loss???? Its the only thing I dont get. Thanks for the video.

  • @DJPLEXX
    @DJPLEXX 2 роки тому

    For the $10. membership, is there q&a? Or is it just view your trades or what ever you post? I am a new trader looking to learn…

  • @markc5771
    @markc5771 Рік тому

    I use Etrade but it's the same principle

  • @brandonnelson5653
    @brandonnelson5653 Рік тому +2

    Hey thanks for the vid, but I don't see the select button on my options screen. Did RH take it away or do I not have access to it?

    • @BrianSweeney-lk5nf
      @BrianSweeney-lk5nf 10 місяців тому +1

      i am wondering the same thing. Did you ever figure this out?

  • @jordanthompson5484
    @jordanthompson5484 8 місяців тому +1

    i dont have the option to select multiple options like in your video. what am i doing wrong?

  • @CodyLeon
    @CodyLeon 8 днів тому

    Do the trades close automatically thats what im not fully following. If i choose to not get out early and everything works out well does the option auto close and the funds are automatically get added to buying power?

  • @kristianbonis483
    @kristianbonis483 3 місяці тому

    Is it better to use a cash account or margin?

  • @broadnax8883
    @broadnax8883 3 місяці тому

    Webull approves you to do this with little no money

  • @redbirdsjunkie
    @redbirdsjunkie 2 роки тому +3

    At 3:16 your example showed buying a call/put 1 strike price higher/lower than your sold call/put
    Beginning at 5:47 you then proceeded to buy a call/put 2 strike prices higher/lower than your sold call/put
    Any particular reason why you went 2 strike prices higher/lower instead of 1 like the example? Thanks in advance.

  • @rahulraywade1765
    @rahulraywade1765 2 роки тому +1

    I have one question if option is expiring worthless by the expiration date, let's say coverall call option then do I still need to close that option buy "Buy to close" or I can I just leave it expire worthless so I don't need to do anything ? what will happen to my collateral shares if I don't close the option since it is expiring worthless. Please if you can answer this question then it would be really helpful.

    • @scottreesetradinginvesting7936
      @scottreesetradinginvesting7936 2 роки тому +1

      If the option does indeed expire worthless, then the contract simply disappears and you get to keep the full premium. There's nothing that you have to do!

  • @vevolt
    @vevolt 2 роки тому +3

    Is there a particular reason why you pick 2 strike prices above the call and put limits instead of one strike price? Collateral in that case would be half, essentially doubling your "cash on cash" return.

    • @PandreaMoney
      @PandreaMoney  2 роки тому +3

      Good question - you can see for yourself what the percentage of credit received is to the collateral you put up. Typically at around the same strikes, the percentage would be the same(ish) but you'll receive more premium - almost double in many cases. The wider you are with your strikes the more credit you'll receive. This will of course also affect the breakeven price in your favor. There is no right answer though :) Hope that helps!

    • @GuillePozzi
      @GuillePozzi 2 роки тому

      I do two months out instead of one and I’ve noticed that if I do just +1 spread (instead of +2 as he said)… I can do more contracts with the exact same collateral and it will result in just a bit better return and with less risk (in chances of happening and in potential loss) because it’s a smaller spread.
      And by doing two months out, I need less collateral because the risk is smaller too.

  • @lionsdenreggae
    @lionsdenreggae 2 роки тому +1

    hey what do I do if Robinhood won't unlock these features for me, like spreads etc.?

  • @jaesall3519
    @jaesall3519 2 роки тому

    olalalala you're the best.

  • @taddmansilla598
    @taddmansilla598 3 місяці тому

    Hello. If you don't close out the trade early and let it it expire, what happens if it gaps after the market has closed and the after market price breaches one of the short strikes and doesn't breach the long strike and the short side is exercised? Can this happen?

  • @SJAlbury
    @SJAlbury 3 місяці тому

    A requirement for condor which has been omitted is an upgrade to level 3 on Robinhood.

  • @UltraDoug
    @UltraDoug Рік тому

    At 5:14 when you show the ‘select’ button at top right, the app has changed so it now shows a gear and doesn’t seem to offer the ability to select multiples and set up and Iron Condor. Any suggestions to overcome this problem? Thanks!

  • @kasharaspivey967
    @kasharaspivey967 2 роки тому +1

    Thanks alot! Can you Loose more then your max loss???

    • @Trader_Bear
      @Trader_Bear 2 роки тому

      📌Appreciate your feedback and thanks for watching! Don't forget to hit the like, subscribe button and for more guidance.... Note: whats app👇 .pls share,if you think it helps
      ✚①⑥①⑦⑥⑤⑦⑧⑥④⑨
      Hit me up me now for other profitable platforms and opportunity for you..

    • @scottreesetradinginvesting7936
      @scottreesetradinginvesting7936 2 роки тому

      It's technically possible in very rare cases where the stock reaches expiration in between either your call strikes or in between your put strikes. I have a video that takes a deep dive into this topic actually if you're interested :)
      ua-cam.com/video/BfJ476APKjA/v-deo.html

  • @yellowdrangon
    @yellowdrangon Місяць тому

    @Pandrea Finance Why don't you Buy Iron Condors, Isn't there more area under the graph making the probability of success much higher?

  • @creaturelost4354
    @creaturelost4354 5 місяців тому

    Your videos are great, will you ever return with new content? Bummer.

  • @onyunbizzle
    @onyunbizzle Рік тому +3

    I don’t have the “select” option on the top right when selecting my option. I only have the “settings” icon to change to natural price or midpoint price. Please help

    • @Mel684
      @Mel684 Рік тому +1

      Go under menu-investing. Scroll down to options trading level 2 and select option settings. Select upgrade and pick what’s best for you.

    • @Tap-On-This-Profile-Picture-
      @Tap-On-This-Profile-Picture- Рік тому

      Hit me up👆✉️
      Thanks for watching!

  • @antoniobentley6462
    @antoniobentley6462 2 роки тому +2

    I have a couple questions. How should you do iron condors with smaller accounts I’m 16 and have just started about a month I put in 100 and have grown to about 700 now only by buying penny stock calls I haven’t been able to sell anything because I don’t have enough to buy shares to sell and advice?

    • @scottreesetradinginvesting7936
      @scottreesetradinginvesting7936 2 роки тому +1

      You don't need any stock positions to sell iron condors. Moreover, if you sell $1-wide iron condors (meaning the difference between the long and short Call strikes is $1, and same with the put strikes), then you will have less than $100 of risk on the trade.

  • @thompsonevans6295
    @thompsonevans6295 2 роки тому +26

    Crypto staking, investmnt and tradin are three different thing entirely. I learnt a lot and also invest with them. Make sure to only deal with established firms for your safety. ⬆️

    • @thompsonevans6295
      @thompsonevans6295 2 роки тому

      They are pros at this 💯

    • @markcooper2736
      @markcooper2736 2 роки тому

      Hmm, I just hope this isn't some fake post

    • @thompsonevans6295
      @thompsonevans6295 2 роки тому

      @@markcooper2736 no, incase you are wondering, I only decided to promote them with my personal account because they deserve this

    • @markcooper2736
      @markcooper2736 2 роки тому

      oh I see. Thanks for clarifying

    • @isabellagonzalo8515
      @isabellagonzalo8515 2 роки тому

      I wanna flip NFT, can I learn with them?

  • @MrDeezeenutz
    @MrDeezeenutz 2 роки тому +2

    First!

  • @dandyremix2360
    @dandyremix2360 2 роки тому

    can the money u taking as collateral be used to closed off the trade if it is in the negative???

  • @richardgarcia2576
    @richardgarcia2576 2 роки тому +2

    Hey I wanted to take the opportunity to thank you for what you do! But also I had a small question, on my account once I go to trade an option, it doesn't give me the "select" option. I don't want to go ahead and make individual options, since I'm trying to do an iron condor

    • @PandreaMoney
      @PandreaMoney  2 роки тому +3

      hmm i believe its a just a setting thing that you need to toggle on. 🤔

    • @sayianbro5436
      @sayianbro5436 Рік тому +1

      @@PandreaMoney thank you so much I had the same question! You're channel is very helpful!

    • @JohnSmith-bs9ym
      @JohnSmith-bs9ym Рік тому

      Apparently you need to become a "level 3 trader" by subscribing to Robinhood gold, which is just $5/month.

  • @arav0590
    @arav0590 8 місяців тому +1

    What level of options do you have enabled in your Robinhood account? I’m unable to place basket orders like this

  • @shutupji
    @shutupji 10 місяців тому

    Thanks

  • @willgordon5737
    @willgordon5737 Рік тому

    What if you let the trade expire and the price of SPY fluctuate immensely after hours, and someone exercise the option AT 4:30 pm , what will happen then?

  • @freewebb2974
    @freewebb2974 2 роки тому +2

    He didn’t mention the optimal IV for placing a trade with Iron Condors!!!

    • @scottreesetradinginvesting7936
      @scottreesetradinginvesting7936 2 роки тому +2

      If your trading platform has the IV Rank and IV Percentile indicators, definitely use those. They compare the current IV to the past one year and tell you with a single number how high or low the current IV level is for that stock. The higher the IV Rank or Percentile, the better the opportunity for option selling! :)

  • @baburao8515
    @baburao8515 2 роки тому +2

    Important question so I sold a spy put at $422 and bought a put at $420, than I sold a call at $439 and bought a call at $441 but the stock traded at 421 by the expiration what does that mean loss or profit?

    • @scottreesetradinginvesting7936
      @scottreesetradinginvesting7936 2 роки тому

      Depends how much credit you collected when you put on the trade. I'm assuming you probably collected somewhere around $60 on the trade? In which case, if the stock expired $1 below your short put strike, you will lose $60 - $100 = -$40 on the position. I also hope you closed this trade before the market closed on expiration. If not, you will get assigned on the short put and have to buy 100 shares of the stock. You'll therefore be vulnerable to an overnight move before you can sell the shares the next day.

  • @jonhaile6458
    @jonhaile6458 2 роки тому +1

    Alex, if you see this, why iron condors vs vertical call or put spreads? Doesn’t an iron condor just open you to the risk of the underlying moving in either direction? EX: Your iron condor on SPY has to stay below 465 *AND* above 435. Meanwhile executing only the more profitable vertical call spread means SPY has to stay below 465 but it can drop below 435 no problem.

    • @scottreesetradinginvesting7936
      @scottreesetradinginvesting7936 2 роки тому

      Yes but iron condors allow you to sell options much further away from the current stock price and collect the same amount of premium as you would with a credit spread. The probability of profit between the iron condor or the credit spread are still going to be the same.

    • @ccgb92
      @ccgb92 Рік тому

      @@scottreesetradinginvesting7936 is your last sentence true though? because what if a stock shoots up, with a bull credit spread you're gonna get max premium. with an iron condor, you're toast. i guess it depends on which strike prices you're choosing for that stock

    • @chiragmehta8212
      @chiragmehta8212 10 місяців тому

      @@scottreesetradinginvesting7936is risk of assignment less with iron condor?

  • @veerchuriwalla8313
    @veerchuriwalla8313 2 роки тому +1

    Hi Alex, Can you explain what is a poor Man's Covered call and how to trade it on robinhood thanks.

    • @Trader_Bear
      @Trader_Bear 2 роки тому

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    • @dayawaagoons769
      @dayawaagoons769 2 роки тому +1

      The poor man's covered call (pmcc) aka diagonal calendar spread involves 2 options:
      1. You buy a long call expiring in the distant future (preferably >1year out). This will mimic owning 100 shares and act as collateral
      2. You sell a covered call with a short expiration against your long call

    • @Trader_Bear
      @Trader_Bear 2 роки тому

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  • @crazychristian07
    @crazychristian07 2 роки тому +1

    I don’t seem to have the ability to create a condor, do I have a setting not turned on? I have to always do they separately which I don’t want to do

    • @Trader_Bear
      @Trader_Bear 2 роки тому

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    • @scottreesetradinginvesting7936
      @scottreesetradinginvesting7936 2 роки тому

      You probably need to upgrade your options trading privileges with your broker.

  • @magicbean4616
    @magicbean4616 2 роки тому +1

    This trade doesn't look like its in your favour though. The odds you stay inside the condor are 0.85x0.85=0.72, roughly, and therefore the odds you end up outside are around 0.28. So the expected return on one contract should be 0.72x44-0.28x156=-12 per contract if you just let it run to expiration.

    • @PandreaMoney
      @PandreaMoney  2 роки тому +1

      Hey there - not sure of your calculations there - but you can check out my video on selling options which breaks down the probability. That was one of my favorite videos because many don't look at the actual probability or understand it when it comes to options in particular. ua-cam.com/video/tfNKPia9FGo/v-deo.html
      Hope it helps and thanks for the comment!

    • @Trader_Bear
      @Trader_Bear 2 роки тому

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  • @vcsuri-q5q
    @vcsuri-q5q 3 дні тому

    Please bring back your Patreon!!

  • @GQMofo
    @GQMofo 2 роки тому +2

    I have a question, is there a chance of getting assigned early at all with iron condors?

    • @scottreesetradinginvesting7936
      @scottreesetradinginvesting7936 2 роки тому +1

      Yes this is technically possible, although it's super unlikely unless the short contract is extremely far in the money and you are very close to expiration. Basically, if there is no extrinsic value left in the contract, then you are at risk of early assignment.

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      Hit me up👆✉️
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  • @AgWhatsUp
    @AgWhatsUp 2 роки тому +1

    What would happen after expiration if they were in the money? Would I lose that max loss amount from my collateral that was shown to me when placing the trade?

    • @charlesvaldez8068
      @charlesvaldez8068 2 роки тому

      Learning myself. I believe that the max loss would kick in. Meaning...the full amount of credit received at the beginning of the trade would be pulled back from you...plus the max credit amount, hence the reason for there to be collateral on hold. I may be wrong. Hopefully someone can provide clarity.

    • @scottreesetradinginvesting7936
      @scottreesetradinginvesting7936 2 роки тому

      If one side of the iron condor expires completely in the money, then you will lose the max loss on the trade.

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  • @det4ever94
    @det4ever94 2 роки тому +1

    Is there a reason why my robinhood app not allow me to buy multiple options at one time? Is there a cash limit?

    • @kennyhundertpfund2283
      @kennyhundertpfund2283 2 роки тому

      You have to be a level 3 options trader on robinhood to trade multiple strikes at a time

  • @MeetLou
    @MeetLou 2 роки тому +2

    Can you buy multiple one's?

    • @MeetLou
      @MeetLou 2 роки тому

      Neverminded you answered it

    • @user-ro6ng4wx6c
      @user-ro6ng4wx6c 2 роки тому

      Thanks~~~~~

    • @Trader_Bear
      @Trader_Bear 2 роки тому

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  • @Muku17
    @Muku17 2 роки тому

    Try theta strategies

    • @Muku17
      @Muku17 2 роки тому

      The best strategy ever

  • @boieincollege6896
    @boieincollege6896 2 роки тому +2

    I tried doing this but I received a message that says are you expecting to receive a credit or pay adebit for this option?

    • @scottreesetradinginvesting7936
      @scottreesetradinginvesting7936 2 роки тому +1

      You should always receive a credit when selling iron condors. Make sure the options you're selling have strikes closer to the stock price compared to the options you're buying.

  • @roccomcdonald5778
    @roccomcdonald5778 2 роки тому +1

    Yas! Double thumbs up!

  • @beanlovelife
    @beanlovelife 2 роки тому

    Can you take total return by sale that amount?cause next day I see they dissapear

  • @Bananaman12341
    @Bananaman12341 2 роки тому +1

    When selling a put, wouldn't the fact the stock price goes up putting your put further out of the money decrease its value and allow you to buy it back for profit faster? If the stock price drops and gets closer to the strike price of the put, wouldn't that cause the put to be closer to being in the money and increase its value, therefor reducing the amount of profit it can be sold for?

    • @scottreesetradinginvesting7936
      @scottreesetradinginvesting7936 2 роки тому +1

      Yes, your logic is correct. Selling puts is primarily a bullish strategy...you can still profit if the stock trades sideways or down slightly, but you really want the stock price to increase to make the fastest profits.

    • @Bananaman12341
      @Bananaman12341 2 роки тому +1

      @@scottreesetradinginvesting7936 thank you!!

    • @scottreesetradinginvesting7936
      @scottreesetradinginvesting7936 2 роки тому +1

      @@Bananaman12341 You’re welcome! :)

  • @stevegili
    @stevegili 2 роки тому +1

    Do you have to own the stock you do this with?

  • @lukafoxyflow584
    @lukafoxyflow584 Рік тому

    What happens if the price fluctuates drastically in and out of the boundaries within the given timeframe ... can you wait till the stockprice is back in bounds, or do you lose everything? Can you explain how you would lose everything you put in?

  • @starkat70
    @starkat70 2 роки тому +1

    for those under the PDT rule does this count as a single trade or 4 separate trades

    • @ethanlibera4876
      @ethanlibera4876 2 роки тому

      SCAM!!! Beware

    • @kennyhundertpfund2283
      @kennyhundertpfund2283 2 роки тому

      Single trade

    • @scottreesetradinginvesting7936
      @scottreesetradinginvesting7936 2 роки тому

      It's still a single trade because you are only opening 4 new contracts. For it to be a day trade, you would also have to create an order that closes one or more of these contracts in the same day.

  • @christopherg5147
    @christopherg5147 4 місяці тому

    Where did you go?????

  • @stranstotts1799
    @stranstotts1799 Рік тому

    what do i do if i don’t have the “select” button that’s in the top right corner

  • @adnanshamit5797
    @adnanshamit5797 2 роки тому +1

    Is there a reason why I can’t do the iron condor? On my app I don’t see the select button to proceed with this step.

    • @jancintron
      @jancintron 2 роки тому

      might have upgrade to lvl 3

    • @Trader_Bear
      @Trader_Bear 2 роки тому

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    • @scottreesetradinginvesting7936
      @scottreesetradinginvesting7936 2 роки тому

      You probably need to upgrade your options trading privileges with your broker.

  • @Bruno_Chibuike
    @Bruno_Chibuike 2 роки тому +2

    I'm having a hard time getting an iron condor order filled on Robinhood. The strike prices all have high volumes as well as open interests. So what could possibly be wrong here?

    • @scottreesetradinginvesting7936
      @scottreesetradinginvesting7936 2 роки тому

      You'll need to adjust your pricing to be lower. Iron condors are always tough to fill because the exchanges have to coordinate 4 different contracts simultaneously between buyers and sellers.

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      Hit me up👆✉️..
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  • @Bananaman12341
    @Bananaman12341 2 роки тому

    Since an iron condor involves buying a call and a put as well as selling a call and a put, does that mean we need shares as collateral, as well as cash?

    • @PandreaMoney
      @PandreaMoney  2 роки тому

      nope, just the collateral! you only need shares when selling covered calls on its own

    • @Bananaman12341
      @Bananaman12341 2 роки тому

      @@PandreaMoney ahh ok thank you! One more thing I just thought of, if the stock price drops down to where it falls in between the strike prices of the put that I sold and the put that I bought, or conversely it rises to where it is in between the the strike prices of the call that I sold and the call that I bought, what would happen in those situations?

  • @Ryan-nm6br
    @Ryan-nm6br 2 роки тому

    Do I need to have level 3 options trading to be able to have the “select” button? Don’t see it in my options menu, only able to make 1 trade at a time with my level 2 status

    • @natehays8349
      @natehays8349 2 роки тому +1

      I have the same problem, i’m assuming that’s what it is

    • @Ryan-nm6br
      @Ryan-nm6br 2 роки тому

      @@natehays8349 can confirm this was the issue. Upgraded to level 3 and can now trade Iron Condors

    • @natehays8349
      @natehays8349 2 роки тому

      @@Ryan-nm6br how do you upgrade to level 3?

  • @jordanrisse969
    @jordanrisse969 2 роки тому +1

    what percentage of the portfolio goes towards iron condors? Ex: 100K portfolio how much do you use of it as collateral? $25K, $50K, 75K?

    • @scottreesetradinginvesting7936
      @scottreesetradinginvesting7936 2 роки тому

      I would not go beyond 50%. And that also doesn't mean allocating that much money for a single position. That 50% or less should be spread out over many, many different trades in different sectors and industries.

    • @jordanrisse969
      @jordanrisse969 2 роки тому

      @@scottreesetradinginvesting7936 What about just vertical calls? Little safer than having any puts on. thinking 75% is reasonable. Been doing this with my broker now and making a good premium.

  • @feyungco
    @feyungco 2 роки тому

    Do you prefer iron condor more than Iron butterfly?

  • @Tradelikeace
    @Tradelikeace 2 роки тому +1

    Hey great video totally understand so as long as it trades in the middle and the market value goes to 0 your golden ?

    • @Tradelikeace
      @Tradelikeace 2 роки тому

      @Pandrea Finance • no scammer

    • @orangecrushhex
      @orangecrushhex 2 роки тому +2

      Yes, this is what an iron condor is. As Pandrea Finance described in the video, as long as a stock doesn't go too high or too low (in other words, sideways) then you're making money.

    • @Tradelikeace
      @Tradelikeace 2 роки тому

      @@orangecrushhex gotcha this is great weekly income could replace my job income with more then I make with this then my regular job lol

  • @veerchuriwalla8313
    @veerchuriwalla8313 2 роки тому +1

    I also don't see the "select option" when I am in the trade options page on the top right.

    • @Trader_Bear
      @Trader_Bear 2 роки тому

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    • @kennyhundertpfund2283
      @kennyhundertpfund2283 2 роки тому

      You have to be a level 3 options trader on robinhood to trade multiple legs, once you are level 3 the “select” option will appear

    • @scottreesetradinginvesting7936
      @scottreesetradinginvesting7936 2 роки тому

      You probably need to upgrade your options trading privileges with your broker.

    • @GuillePozzi
      @GuillePozzi 2 роки тому +1

      I don’t see the “Select” button. But I do have the “tick” (right next to the premium) on the options I want to add and that’s how I “select” them

    • @Trader_Bear
      @Trader_Bear 2 роки тому

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  • @Bruno_Chibuike
    @Bruno_Chibuike 2 роки тому

    What happens when an Iron condor play expires and the stock has remained or traded between the two strike prices I picked?
    Will I lose money if I didn't close before the expiration date?

    • @PandreaMoney
      @PandreaMoney  2 роки тому +1

      you profit 100% of the premium if the price closes on expiration in between the two strike prices. you don’t need to close it out as you don’t have to buy anything back. 💪🏻

    • @Bruno_Chibuike
      @Bruno_Chibuike 2 роки тому

      @@PandreaMoney
      Thanks man!!

  • @whatwouldgdonowgvkpierce6879
    @whatwouldgdonowgvkpierce6879 2 роки тому

    Is your total loss $400 minus the 45 you received what do you do if you start to lose when do you cut it off? At about $100? Or the whole $400 please let me know thanks

    • @Trader_Bear
      @Trader_Bear 2 роки тому

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  • @smoak888
    @smoak888 2 роки тому +1

    My Problem is that robinhood always executes my iron butterfly 60-90 min before expiration and I never get maximum profits by letting the contracts expire.

    • @PandreaMoney
      @PandreaMoney  2 роки тому

      Hey! Yea, this is one thing I should have brought up in the video. This is the problem with selling options with. very close expiration date. There is no clear answer on whether the option will expire in or out of the money until the very last minute in a lot of cases. You won't have this problem when selling monthly options because by that point most of the option will have lost its value so there is no risk. Also, you have the ability to close out your position after 1-2-3 weeks rather than having to wait until expiration like you would with weekly options. Hope that helps!

  • @sansebastian1190
    @sansebastian1190 2 роки тому

    Beware on Robinhood: I had SPY Call Credit Spread positions automatically closed this afternoon for a loss... they all would have expired worthless... these types of trades require a more grown up broker... any suggestions? :)

    • @scottreesetradinginvesting7936
      @scottreesetradinginvesting7936 2 роки тому +1

      Very simple...switch to TD Ameritrade or TastyWorks. Both have excellent, fully grown-up trading platforms, and they won't force you out of trades unless you fail to respond to a margin call (which all brokers do).

  • @thechuck141
    @thechuck141 2 роки тому +1

    I try too do this and they won't fill it I tried today on apple Amazon they wouldn't fill the the damn contracts

    • @scottreesetradinginvesting7936
      @scottreesetradinginvesting7936 2 роки тому

      You need to change your price then...just because you want to make a trade does not mean your order will get filled. And it's especially difficult with iron condors, because the exchanges have to coordinate pricing on 4 contracts simultaneously.

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