The 530 call is more than 5 % out of the money, but it has a 37 delta, and that's outside the comfort zone of many
iron condor traders.
Most
iron condor traders prefer to have positions that expire in the front month (options with the least time remaining before they expire).
It's 4 1/2 months into the year and I've found this to be one of the easy periods for
iron condor traders.
Some sophisticated
iron condor traders believe this is important, but it's something else I chose to ignore.
My advice: If you are an experienced
iron condor trader, it is okay to nibble, but I would not want more than 20 % of my cash (the cash set aside for strategies such as the iron condor) in play at this time.
Not exact matches
Traders do not need to understand
iron condors, broken wing put flies, or the Greeks to make money from trading options.
Option
traders know combinations with funny names like «
Iron Condor» or «Butterfly», but you're not limited to them.
The
iron condor is a trade for the experienced
trader who wants limited risk.
Sometimes the market stops moving lower and the
trader not only earns the original cash collected when initiating the
iron condor trade, but is rewarded with extra profits derived from the call sale.
The question for
traders is whether it is time to adopt premium - selling strategies (the
iron condor, for example), or if it is better to wait for even higher volatility.