Adviser：張上財
Class：碩財一甲
Number：MA180104
Name：蔡佩蓉

Write condor spread strategy is
composed of a total of four options
composite strategy, use of time is that
the underlying spot price is expected to
greater fluctuations than consolidation
rose dramatic use of the strategy of risk
and profit are limited.


Write condor is a neutral strategy similar to the
short butterfly. It is a limited risk, limited profit
trading strategy that is structured to earn a
profit when the underlying stock is perceived
to be making a sharp move in either direction.
Using calls, the options trader can setup a
short condor by combining a bear call spread
and a bull call spread.


The trader enters a short call condor by buying
a lower strike in-the-money call, selling an
even lower striking in-the-money call, buying a
higher strike out-of-the-money call and selling
another even higher striking out-of-the-money
call.
A total of 4 ways are involved in this trading
strategy and a net credit is received on
entering the trade.

The maximum possible profit for a short
condor is equal to the initial credit
received upon entering the trade. It
happens when the underlying stock price
on expiration date is at or below the
lowest strike price and also occurs when
the stock price is at or above the highest
strike price of all the options involved.


Maximum loss is suffered when the underlying
stock price falls between the 2 middle strikes
at expiration.
Max Loss Occurs When Price of Underlying is
in between the Strike Prices of the 2 Long
Calls


Upper Breakeven Point = Strike Price of
Highest Strike Short Call - Net Premium
Paid
Lower Breakeven Point = Strike Price of
Lowest Strike Short Call + Net Premium
Paid
Strike price Premium
Sell
7200
132
Short spread
Buy
7400
64
Short spread
Buy
7600
29
Bull spread
Sell
7800
12.5
Bull spread
7200(+68)
68
7268
When 7200→7400,the loss
200 point, 132-200=(-68),
-68+(-64)=(-132)
When 7200 point earn
200-132=+68
132
7400 (-132)
Sell one 7200 Call for 132
Buy one 7400 Call for 64
The maximum gain is 68 and the maximum loss is 132
The Break-even point is 7268 points
7800(+183.5)
-29+12.5=(-16.5)
When
7600→7800,the
earn 200 point
200-16.5=183.5
183.5
16.5
7616.5
7600(-16.5)
Buy one 7600 Call for 29
Sell one 7800 Call for 12.5
The maximum gain is 183.5 and the maximum loss is 16.5
The Break-even point is 7616.5 points
7200(+51.5)
7251.5
7400(-148.5)
7800(+51.5)
7748.5
7600(-148.5)
The maximum loss is -132-16.5=-148.5 point
The maximum gain is 200-148.5= 51.5 point
Upper Breakeven Point =7600 + 148.5 = 7748.5 point
Lower Breakeven Point =7400 -148.5 = 7251.5 point

If the futures Index closed at under 7,251.5 points or
on the 7,748.5 points, In a profitable state, the
operation was successful.

If the futures Index closed at under 7200 points or
7800 points, it can get the maximum profit. (51.5 point)

If the index closed between the largest 7,400 to
7,600 .the loss will 148.5 points.

http://www.optionstradingresearch.com/short-condor-spread/

http://seekingalpha.com/article/308897-using-the-shortcondor-option-spread-around-earnings-with-volatile-stocks

http://www.theoptionsguide.com/short-condor.aspx

http://www.optiontradingpedia.com/free_short_condor_spread_s
implified.htm

http://www.optiontradingpedia.com/free_short_condor_spread.h
tm

http://www.theoptionsguide.com/reverse-iron-condor.aspx

http://tw.myblog.yahoo.com/james59572002/article?mid=53
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listening !