22 November 2023
Traders like to use price action to predict what may happen in the short term. With hundreds of different indicators to choose from, and many different approaches to trading, how do you get an edge?
Today we will go through a neutral ANZ (ASX:ANZ) Iron Condor.
We picked this trade idea based on a variety of factors that makes it a favourable trade.
Here are some of the key facts that have contributed to this trade idea:
- There are 37 days to expiry, which is close to our target 45 DTE
- IV Rank is 36, with volatility moving towards 20%
- 50d and 200d Simple Moving Averages have condensed
- The price has broken away from both moving averages
- Liquidity for the Options is good
Based on the open this morning we are looking at trading the following strikes:
- BUY 27.00 PUT
- SELL 27.50 PUT
- SELL 29.50 CALL
- BUY 30.00 CALL
We are looking to trade this around 19c CR with up to 3 cents discretion.
As long as the ANZ finishes on the 27th of June 2019 between roughly 27.30 and 29.70, we will not lose money on this trade (excluding brokerage). The maximum profit on this trade will be based on the entry price, but we are targeting over $600 for every $1,000 in risk. We give this trade roughly 70% probability of profit based on our back-tested values.
If you would like to enter this trade please click here and adjust your quantity to reflect your desired maximum risk and press execute as per normal.
We wish you good luck with your trading, and as always if you have any questions, please feel free to contact our trading desk on (03) 8080 5795.
If you would like to never miss our trade alerts and take full advantage of our platform, click here to try it for yourself in a 7 day free trial.
You can also watch our advisor Michael Lindner walk you through this trade in below video:
*Please note: Past returns do not reflect future returns