When To Use Put Broken Wing Condor Spread?
One should use a Put Broken Wing Condor Spread when one expects the price of the underlying asset to change very little over the life of the option contracts and speculates that even if the underlying asset should stage a breakout, the breakout will most likely be upwards. How To Use Put Broken Wing Condor Spread? A Put broken wing condor spread is actually made up of two different spreads. An Out of The Money Bull Put Spread and an In the money Bear Put Spread. There are 4 trades to make: Sell To Open In The Money put options + Buy to Open Deeper in the money put options (ITM Bear Put spread) + Sell to Open Out of the Money put options + Buy to open further out of the money put options with strike difference greater than in the ITM bear put spread (OTM Bull Put Spread). The profitable range of the put broken Wing condor spread is largely determined by the difference in strike between the two short put options. The wider the strike difference, the lower the maximum profit becomes but t
