The Bible of Options Strategies by Guy Cohen

Author:Guy Cohen
Language: eng
Format: epub, pdf
Publisher: Pearson Education
Published: 2005-10-25T16:00:00+00:00

4.9.2. Context

Outlook

With short condors, your outlook is direction neutral. You are looking for large volatility in the stock price, but you are not concerned with the direction.

Rationale

With short condors, you are looking to execute a limited yielding trade at a net credit, whereby your maximum profits occur if the stock finishes on either side of the upper and lower strike prices at expiration.

You are anticipating high volatility with the stock price, which will lead you to profit.

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