Thread by @PAlearner

Many of friends confused about break-even point on Iron condor strategy .

Here I am starting to explain in details with my original July month trade .

Here we go -

This is july month trade. see the PIC .

Break-even points are 9246 on lower side & 11454 on upside . both are more than 10% Away from the spot .

Now high-lighted lower break-even point . If tomorrow Lower break-even hits my loss will be 14314 . But if break-even point hits after 20 days loss will be much smaller . It all depends on time and volatility level.

what to do at break-even ?

Those who dont know the dynamic adjustment of IC . Here is simple adjustment for you .

Lower break-even is 9246 . it hits . exit all.

create new IC 10% away from the spot if it hits in first 2 weeks of july month .

if it hits on or after 3rd week - create 7% ways IC.

This is upper break-even 11454 , 10% away from spot . if it hits tomorrow loss will 14000 Rs .

Exit all if break-even hits . do adjustment as suggested in previous step .

In this way you can be saved from big loss , If we take action at break-even .

Keep Alerts before break-even , so that you will not miss adjustment.

Hopefully break-even is clear now .