Options beginner here.
I'm aware of three popular ways to select strike prices for Iron Condor.
- Select strikes such that they are equidistant from the CMP.
- Select strikes such that the they form a delta neutral Iron Condor.
- Select strikes having similar premium on both sides.
Which out of these should I choose and why?
The biggest question I have is that if I choose the strikes which are equidistant from the CMP, the put options are going to be of a higher value than the call options. So, in case if the price goes down, will the put options change with a similar rate as the call options would have in case the price would've gone up? If not, then I can choose this approach. If yes, then I'll have to go for either the second or third approach.