The Iron Condor is a neutral options trading strategy that can have bullish or bearish leanings (depending on how it’s structured). It’s designed to profit when the price of an underlying asset moves within a specific tight range (ie, sideways) and volatility decreases.
For Scott Bauer, the Iron Condor is one of his go-to options trading strategies. Whether it’s for his Live Trade Signals or hypothetical trade ideas, he’s used this setup to show some very impressive results over the years.
One of Scott’s most recent wins with the Iron Condor came on Oliver Renick’s Chicago Future of Finance Podcast. On Wednesday, Scott broadly outlined a trade idea he would consider for Broadcom Inc. (AVGO). He said the stock—which reported earnings that same day—was very big on his radar, and believed it had a lot of upside:
Scott was back on Oliver’s show today, and discussed the beating cloud stocks have taken. Oliver pointed out how Scott wound up nailing his Iron Condor trade idea for AVGO. It led Scott to discuss how AVGO moved yesterday, and what he believes the stock could do going forward.
The analysis, insights, and strategies shared by Prosper Trading Academy’s coaches in Prosper Insider are strictly for educational and informational purposes only. All content reflects the personal opinions of the coaches and should not be construed as specific investment advice or recommendations. Any examples discussed are illustrative in nature and do not represent actual live trade signals or instructions to buy or sell securities. Trading involves risk, and individuals should carefully evaluate their own financial situation before making investment decisions.
Scott covers:
- How AVGO held up during yesterday’s broader market selloff
- The highs AVGO hit yesterday morning
- If yesterday’s market dip held the stock back from a larger potential breakout
- The continuation he believes we could see in AVGO
- Near-term highs he thinks the stock could hit
