Iron Condor, Whats the Big Deal?
At some brokers, an Iron Condor position can generate more “bang for the buck”, as they allow the margin required for the Iron Condor to be the maximum of the margin required for the bull-put or bear-call position, instead of the sum of the margins. Some brokers allow this special margin consideration for the Iron Condor since for an Iron Condor, both spread positions (bull or bear) cannot suffer a loss simultaneously. For example, an Iron Condor position consisting of a bull-put position and a bear-call position with each position separately requiring $10,000 of margin and having a potential return of 5% would have a joint potential return of 10% for trades with brokers allowing for the special margin consideration, potentially doubling the return of an investment. Additionally, the Iron Condor position aids in alleviating losses because even when one of the spread positions (bull or bear) incurs a loss, the remaining position generally remains profitable and helps reduce the overall
