A debit strategy buying an OTM Call spread and Put spread to profit from explosive binary price breaks in either direction.
Reverse Iron Condor (Event-Based) is a adjustment & hedging options trading strategy (4 legs) engineered for limited risk profiles in low iv pre-event market environments.
Spread Width - Net Debit Paid
Net Debit Paid
Near Put - Debit & Near Call + Debit
| Action | Contract Type | Strike Selection | Quantity |
|---|---|---|---|
| BUY | CALL | Near OTM Call | 1x |
| SELL | CALL | Far OTM Call | 1x |
| BUY | PUT | Near OTM Put | 1x |
| SELL | PUT | Far OTM Put | 1x |
Protects long stock gains by buying an OTM Put for floor protection and selling an OTM Call to fund the put cost.
🔐 Adjustment & HedgingThe fundamental defensive adjustment: closing an existing option leg and reopening a new option leg at a different strike or expiration.
🔐 Adjustment & HedgingCombines futures contracts with option spreads to insulate institutional commodity/index portfolios from overnight shocks.
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