standard deviation
The One Sigma Method of Iron Condor Trading
Read the full article: http://www.condoroptions.com/2008/03/01/the-one-sigma-method...
In this article, we present one of the simplest methods of constructing iron condors. The idea is to select short strikes that are one standard deviation (one sigma) away from the current underlying; trades constructed in this way will have about a 68% probability of success, assuming the price curve over the life of the trade is normally distributed.
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