Learn First; Trade Later

 

 

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When you are selling an Iron condor you are selling two credit spreads. Both credit spreads are out of the money. A credit spread strategy is one that can be used to generate income on a consistent basis. The bear call credit spread is a strategy where two calls are used to initiate a position, and the bull put credit spread is a strategy were two puts are used. Generally, to construct a bear call credit spread you will sell an out of the money call and purchase a future out of the money call, or sell an out of the money put and purchase a further out of the money put.