1

Add ADX & ATR to Graph

Model your 1st Delta Neutral Iron

Condor

Save trade in OptionsPro

Put “Condor Week” on your

calendar

Your Action Items

2

Add ADX & ATR to Graph

1. Right click on graph

2. Move mouse over “Add Study”

3. Left click on “Average Directional Movement”

4. Uncheck “Display +DI/-DI”

5. Click “OK”

6. Repeat steps 1-3 and add “Average True Range”

7. Stack Studies - drag one section on top of another

8. Right click on graph

9. Move mouse over “Template”

10. Left click “Save As Default”

Add ADX to Chart (part 1)

1.Right click on the graph

2.Mouse over “Add Study”

3.Left click “Average Directional Movement”

3

Add ADX to Chart (part 2)

1.Uncheck “Display +DI/-DI”

2.Click “OK”

Add ATR to Chart

1.Right click on the graph

2.Mouse over “Add Study”

3.Left click “Average True Range”

4

Stack Studies (part 1)1. Move your mouse over the name of

the Study – It will become

highlighted in blue

2. Left click & hold down mouse button

3. Drag mouse over another section

and let go of mouse button

1

2 & 3

Stack Studies (part 2)1. After stacking both ADX & ATR with

Over/Underpriced, it will look like this.

Save as Default

2. Right click on the graph to access the

menu.

3. Move mouse over “Template”

4. Left click “Save As Default”

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2 & 3

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Model Delta Neutral Iron Condor

For this assignment, you will assume three things:

• You are neutral on the overall market.

• ATR is on the low end of range on the stock.

• ADX is below 20 on the stock & market.

• The stock’s options are overvalued.

Model Delta Neutral Iron Condor

1. Load Options Chain

2. Select expiration date 21-45 days away (prefer closer

to 21 days & monthly expirations for stocks)

3. Select Call to Sell with Delta less than 20

4. Select Call to Buy as “insurance”

5. Select Put to Sell with Delta less than 20

6. Select Put to Buy as “insurance”

7. Model trade using Risk Graph

8. Enter Fill prices so you can track the trade

9. Save trade in OptionsPro

6

1. Load Options Chain

1.Left click on “Chain”

2.Type the ticker symbol in

the box at the top

3.Press Enter

2. Select Expiration 21-45 Days Away1. Click “Clear” at the top

2. Click “Multiple Expirations”

3. Select an expiration 21-45 away

(prefer closer to 21 days &

monthly expirations for stocks)

4. Uncheck unneeded expirations

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3. Select Call To SELL1.Look in the Calls section

2.Locate a Strike with Delta < 20

1

3. Click the Bid price & you’ll notice

it fills in this order at the topNote: In this example, we chose the 2220 strike. It

also had plenty of Open Interest and Volume.

2

3

4. Select Call To BUY1. Choose a Strike above the one

you soldNote: The higher you go, the higher your Max

Profit but it also increases your Max Risk.

2. Look for Open Interest of at least 100

3. Click the Ask price & notice it fills in

this order at the topRemember the Pro Tip: With stocks you should choose

strikes closer together – With indexes you can have

them farther apart.

132

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5. Select Put To SELL1.Look in the Puts section

2.Locate a Strike with a Delta

that matches the Call you sold

3. Click the Bid price & you’ll notice

it fills in this order at the topNote: 1) In this example, even though the delta box is blank,

you can tell that the delta would be around 16. Sometimes a

blank box appears due to a calculation issue. 2) While setting

up this trade the Delta of the Call changed from 16 to 17 so we

will select the 17 Delta for the Put.

Note 1

1

3

Note 2

2

6. Select Put To BUY1. Select the Strike which is the same

distance away as the Call side of the trade.In this example, the Calls were separated by 15 points.

So your Puts need to be separated by 15 points.

2. Click the Ask price & notice it fills in

this order at the top

3. Notice the Trade is Delta Neutral. It is

less than .08.

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2

3

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6. Model Trade Using Risk Graph (pt1)

1.Right click on the trade

2.Click “Risk Graph”

1

2

6. Model Trade Using Risk Graph (pt2)Note three things:

1. Max Profit

2. Max Risk

3. Entry Price

Model more contracts to see

how that affects things.

1 & 2

3

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7. Enter Fill Prices1.Click “Edit Spread”

2.Enter “Fill Price” – you can

enter the Mid price to model

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3. Click OKNote: You can also adjust the # of Contracts by

increasing the “Quantity”. In this example, we

changed it from 1 to 5 contracts.

3

2

8. Save Trade1.Click “File”

2.Click “Save Page As…”

1

3. Type a name & Click SaveTip: Naming conventions vary, but you’ll want to

have a way to remember 1) The ticker 2) Type of

Trade and 3) The Date

2

3

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How To Reopen Trade Later1.Click “File”

2.Click “Open Page”

1

3. Double click on your trade

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Iron Condor Trade ModelingTicker Symbol Expiration Date Days to Expiration

Side of Trade Calls Puts

Short Option (sell)Strike Price Delta Strike Price Delta

Long Option (buy)Strike Price Open Int Strike Price Open Int

Max Profits1 Contract 5 Contracts 10 Contracts

Max Risk1 Contract 5 Contracts 10 Contracts

Entry Price