Schaeffer's Option Coach: Long Condor

CINCINNATI--(Business Wire)--
Welcome back to another in a series of articles that examines the thought
processes behind a variety of option strategies using stock, index, and/or
exchange-traded fund (ETF) options. One interesting trading strategy that we
haven't covered in a while is the long condor. This column will examine a long
condor, the pros and cons of putting on a long condor, and the profit and loss
potential of this position. So, let's jump into this interesting strategy.

Let's Look at an Example

Today, our trader has turned his focus to the shares of Dell Inc. (NASDAQ:
DELL). The equity has staged a nice rally from its February low of $7.84,
resulting in a gain of more than 78% before it settled into a trading range
between support at the $12.50 level and resistance at the $14 level. The
security has been trapped in the trading range since early June.

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Schaeffer's Investment Research
Jocelynn Drake, 513-589-3800
jdrake@sir-inc.com

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