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Iron condor profit accumulation diagram showing theta decay, IV compression, and range-bound price action contributing to returns
Iron Condor Strategy9 min

How Iron Condors Make Money: The Mechanics Explained

An iron condor makes money through three distinct mechanisms working simultaneously: theta decay (time working in the seller's favor), IV compression…

Bernardo RochaDecember 8, 2024
Iron condor profit and loss diagram showing the four-legged spread structure with profit zone between short strikes
Iron Condor Strategy10 min

Iron Condor Strategy Deep Dive: Complete Guide

An iron condor is a four-legged defined-risk options position that profits when the underlying asset stays within a range between the two short strikes. It…

Bernardo RochaDecember 5, 2024
Options assignment diagram showing exercise notification flow from exchange to broker to trader account
Options Education10 min

What Is Options Assignment and When Does It Happen?

What Is Options Assignment? Options assignment occurs when a holder of an options contract exercises their right to buy or sell shares, and the seller of that…

Bernardo RochaNovember 22, 2024
Credit spread payoff diagram showing maximum profit zone and defined maximum loss on dark financial chart
Options Education9 min

What Is a Credit Spread in Options Trading?

A credit spread is a two-legged options strategy where you sell one option and buy another at a different strike price. The net result is a cash credit to your…

Bernardo RochaNovember 17, 2024
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