Bull Condor - What is it & How to do it - A ๐งต
What is it?
This is a four-legged bullish strategy. It makes maximum profit when the stock moves up and expires between the strike prices of the two sold calls.
This is a four-legged bullish strategy. It makes maximum profit when the stock moves up and expires between the strike prices of the two sold calls.
How is it generated?
The first Leg:- Buy Call โ Calculate the price 1% above the spot. Round up or down to get the nearest strike. This is your first Buy Call strike.
The first Leg:- Buy Call โ Calculate the price 1% above the spot. Round up or down to get the nearest strike. This is your first Buy Call strike.
For example, Nifty is 18269, 1% = 182 points. Round to 200 points, that is 4 strikes. We can call this strike_difference.
1st leg:- You buy a call above 200 pts. In this case, its 18450 CE Buy
2nd leg:- You Sell a Call for 4 strikes after leg 1. In this case, its 18650 CE Sell
1st leg:- You buy a call above 200 pts. In this case, its 18450 CE Buy
2nd leg:- You Sell a Call for 4 strikes after leg 1. In this case, its 18650 CE Sell
3rd leg:- You Sell a Call for 4 strikes (strike_difference) after leg 2. In this case, it's 18850 CE Sell.
4th leg:- You Buy a Call for 4 strikes (strike_difference) after leg 3. In this case, it's 19050 CE Buy.
4th leg:- You Buy a Call for 4 strikes (strike_difference) after leg 3. In this case, it's 19050 CE Buy.
The Strategy looks something like this.
You can try out the Bull Condor strategy on our Strategy Builder :)
sbull.co
sbull.co
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