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Understanding the Iron Condor: A 45-Day Options Trade Simulation with SPY ETF

Explore a comprehensive simulation of an Iron Condor options trade using Think or Swim software. This scenario illustrates a 10-position Iron Condor strategy on the SPY ETF from day one to expiration—approximately 45 days. The trade starts with the underlying stock priced at approximately $139/share and has an implementation cost of $640. Potential profit arises when the stock remains between $130 and $140, reaching up to $295. Watch the slideshow to observe profit/loss changes throughout the trade duration.

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Understanding the Iron Condor: A 45-Day Options Trade Simulation with SPY ETF

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  1. Think or Swim software Simulation of how an Iron Condor works from day 1 to expiration(approximately 45 days) April 23, 2012

  2. The Options Trade • SPY ETF – 10 POSITION IRON CONDOR 128/130/149/151 • Underlying stock price at open of trade - approximately $139/share • Cost of trade - $640 • Potential profit if stock stays in between 130 and 140 - $295

  3. POTENTIAL PROFIT AT EXPIRATION UNDERLYING STOCK PRICE ACTIVE TRADE PROFIT/LOSS

  4. The next slides will transition as a slideshow every 3 seconds. You can click the slides if you want to go faster through the 6 week trade. • Pay attention to the P/L Open column, center cell, to see the change in profit for the trade.

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