Iron Condor: The Hedged Fortress
Short Strangle + Protection Wings. This is a "Defined Risk" strategy.
The Structure
It has 4 Legs:
- Sell OTM Put (21,800 PE)
- Sell OTM Call (22,200 CE)
- Buy Far OTM Put (21,700 PE) - Protection
- Buy Far OTM Call (22,300 CE) - Protection
Why the Wings?
- Margin Reduction: Instead of ₹1.5 Lakhs (Strangle), you only need ~₹50,000 because of hedging benefit.
- Peace of Mind: Even if market crashes, your Max Loss is fixed. You can sleep peacefully.
The Ideal Market
Range-bound market with low to medium volatility.
*Disclaimer: NSE/BSE frequently revise Lot Sizes and Expiry Days (e.g., SEBI Circulars 2024/2025). Always check the latest circular on nseindia.com before trading.
Standard Disclosure: Investment in securities market are subject to market risks. Read all the related documents carefully before investing. The content provided here is for educational purposes only and does not constitute financial or investment advice. AlgoStraddle Academy is not a SEBI registered investment advisor. Trading options involves high risk and capital can be lost.