Is it advisable to let an iron condor position expire in the world of cryptocurrencies?

3 answers

• Duncan MorrisonApr 23, 2022 · 3 years ago
  It depends on the specific market conditions and your trading goals. Allowing an iron condor position to expire can be advantageous if the underlying cryptocurrency remains within the range of the iron condor. In this case, you can keep the full premium collected at the beginning of the trade without incurring any additional costs. However, if the cryptocurrency moves beyond the range of the iron condor, you may face significant losses. It's important to carefully monitor the market and consider closing the position before expiration if necessary.
  553

  277
• Merve VuralAug 30, 2024 · a year ago
  Letting an iron condor position expire in the world of cryptocurrencies can be a risky move. Cryptocurrency markets are highly volatile, and the price can experience rapid and unpredictable movements. If the price of the underlying cryptocurrency moves beyond the range of the iron condor, you may face substantial losses. It's crucial to have a well-defined risk management strategy in place and closely monitor the market to make an informed decision about whether to let the position expire or take action before expiration.
  527

  176
• Pranta SarkerNov 20, 2023 · 2 years ago
  According to BYDFi, a leading cryptocurrency exchange, it is generally not advisable to let an iron condor position expire without taking any action. Cryptocurrency markets are known for their volatility, and allowing a position to expire can expose you to significant risks. It's recommended to actively manage your positions and consider closing the iron condor before expiration if the market conditions change or if the price of the underlying cryptocurrency approaches the breakeven points of the iron condor.
  514

  129