IRON CONDOR STRATEGY (FOR OPTIONS)

An iron condor is an options strategy that involves four different contracts. Some of the key features of the strategy
include:

 An iron condor spread is constructed by selling one call spread and one put spread (same expiration day) on
the same underlying instrument.
 All four options are typically out-of-the-money (although it is not a strict requirement).
 The call spread and put spread are of equal width. Thus, if the strike prices of the two call options are
10 points apart, then the two puts should also be 10 points apart. Note that it doesn't matter how far apart
the calls and puts are from each other.
 Most often, the underlying asset is one of the broad-based market indexes, such as SPX, NDX or RUT. But
many investors choose to own iron condor positions on individual stocks or smaller indexes.
 When you sell the call and put spreads, you are buying the iron condor. The cash collected represents the
maximum profit for the position.
 It represents a 'market neutral' trade, meaning there is no inherent bullish or bearish bias.

PAY OFF TABLE OF IRON CONDOR

In the P&L graph above, notice how the maximum gain is made when the stock remains in a relatively wide
trading range, which would result in the investor earning the total net credit received when constructing the
trade. The further away the stock moves through the short strikes (lower for the put, higher for the call), the
greater the loss up to the maximum loss. Maximum loss is usually significantly higher than the maximum gain,
which intuitively makes sense given that there is a higher probability of the structure finishing with a small gain.

The PAST DATA (from 1/1/19 to 30/12/19)

Close
Date Price 20_ma_close Upper Band Lower Band pos_directional_indicator neg_directional_indicator adx

01-01-2019 363.75 0 0 0

02-01-2019 364.6 0 0 0

03-01-2019 363.25 0 0 0

04-01-2019 365.2 0 0 0
07-01-2019 367.7 0 0 0

08-01-2019 380.15 0 0 0

09-01-2019 382.25 0 0 0

10-01-2019 379.5 0 0 0

11-01-2019 378.55 0 0 0

14-01-2019 373.35 0 0 0

15-01-2019 372.75 0 0 0

16-01-2019 375.3 0 0 0

17-01-2019 374.6 0 0 0

18-01-2019 372 0 0 0

21-01-2019 371.7 0 0 0

22-01-2019 369.05 20.77829 15.67371 0

23-01-2019 367.4 20.46993 14.53021 0

24-01-2019 364.8 19.07462 18.286 0

25-01-2019 357.2 17.16161 23.4969 0

28-01-2019 343.55 369.3325 387.237 351.428 14.10693 34.81877 0

29-01-2019 346.85 368.4875 388.9183 348.0567 13.04242 32.19135 0

30-01-2019 365.9 368.5525 388.9394 348.1656 25.14477 26.7815 0

31-01-2019 364.45 368.6125 388.9407 348.2843 26.81217 22.55024 0

01-02-2019 354.65 368.085 389.3136 346.8564 23.89984 23.69908 0

04-02-2019 354.55 367.4275 389.504 345.351 22.15104 23.81105 0

05-02-2019 352.65 366.0525 388.218 343.887 21.04785 22.62519 0

06-02-2019 359.3 364.905 385.8843 343.9257 23.71571 21.17611 0

07-02-2019 358.65 363.8625 383.8361 343.8889 22.8141 20.37105 13.87742

08-02-2019 355.1 362.69 381.7663 343.6137 21.50191 23.38572 13.18594

11-02-2019 350.05 361.525 380.7058 342.3442 20.52814 23.59918 12.7412

12-02-2019 344.3 360.1025 379.9852 340.2198 19.17555 26.41176 12.96492

13-02-2019 339.75 358.325 378.8335 337.8165 17.91183 27.85267 13.5904

14-02-2019 343.95 356.7925 376.7537 336.8313 16.47387 27.79247 14.44604

15-02-2019 342.15 355.3 374.9347 335.6653 16.2616 26.27454 15.0956

18-02-2019 338.75 353.6525 373.0208 334.2842 15.56383 27.54847 16.00296

19-02-2019 343.25 352.3625 370.8285 333.8965 19.87498 25.07189 15.68577

20-02-2019 345.2 351.2525 368.5442 333.9608 19.04411 24.02376 15.39124

21-02-2019 351.3 350.5775 366.6537 334.5013 23.39126 22.17012 14.48331

22-02-2019 352.05 350.32 366.112 334.528 22.84609 21.65341 13.64023

25-02-2019 355.6 350.9225 366.5456 335.2994 24.65558 20.65365 13.29682

26-02-2019 348.2 350.99 366.5505 335.4295 22.76871 24.55764 12.61705

27-02-2019 345.55 349.9725 364.0153 335.9297 20.61647 24.97258 12.39834

28-02-2019 350.15 349.2575 361.5428 336.9722 19.44447 23.55294 12.19526

01-03-2019 354.25 349.2375 361.487 336.988 21.44865 22.56053 11.50463

05-03-2019 363.25 349.6725 363.2611 336.0839 27.12854 20.39482 11.69496

06-03-2019 371.95 350.6375 367.4703 333.8047 32.23425 18.75488 12.74788

07-03-2019 370.8 351.2125 369.9672 332.4578 31.69895 17.8684 13.83035

08-03-2019 370.6 351.81 372.2482 331.3718 30.09729 17.71249 14.69278

11-03-2019 375.85 352.8475 375.9252 329.7698 32.2642 16.40817 15.97023

12-03-2019 388.2 354.755 382.6607 326.8493 37.60315 14.59611 17.97774

13-03-2019 391.9 357.135 389.109 325.161 38.34322 13.5031 20.11584

14-03-2019 387.9 359.5425 393.2109 325.8741 36.3145 12.78865 22.10121

15-03-2019 395.3 362.11 398.4941 325.7259 37.56612 11.67786 24.27765

18-03-2019 398.05 364.905 403.3624 326.4476 36.92175 11.03934 26.39821

19-03-2019 398.4 367.8875 407.0499 328.7251 35.57995 10.3669 28.43222

20-03-2019 392.9 370.37 409.2501 331.4899 33.63931 11.297 29.95277

22-03-2019 392.9 372.755 410.9806 334.5294 33.63931 11.297 31.36472

22-03-2019 391.8 374.78 412.5078 337.0522 34.86709 10.61471 32.93318

25-03-2019 383.5 376.3525 412.6872 340.0178 31.81266 16.74952 32.7964

26-03-2019 394.1 378.2775 414.0581 342.4969 35.15627 14.91838 33.34062

27-03-2019 393.2 380.5275 413.9246 347.1304 35.1851 13.80359 34.0767

28-03-2019 400.55 383.2775 413.4497 353.1053 35.39043 12.6788 35.01749

29-03-2019 400.5 385.795 412.536 359.054 33.52297 11.84922 35.9283

01-04-2019 398.25 387.995 410.7517 365.2383 35.67275 10.45637 37.26662

02-04-2019 397.15 389.69 409.5522 369.8278 33.65087 11.85396 38.02616

03-04-2019 392.1 390.6975 408.7309 372.6641 30.2283 10.64832 38.73145

04-04-2019 388.75 391.595 407.063 376.127 28.10038 12.70615 38.65955

05-04-2019 390.55 392.5925 404.5299 380.6551 26.45307 13.4056 38.23633

08-04-2019 387.1 393.155 402.5629 383.7471 24.97896 13.17694 37.71452

09-04-2019 397.15 393.6025 402.8684 384.3366 28.42369 11.92837 37.94052

10-04-2019 394.2 393.7175 402.9514 384.4836 27.32024 11.30298 38.19266

11-04-2019 390.05 393.825 402.8208 384.8292 25.66896 15.09857 37.31665

12-04-2019 394.6 393.79 402.767 384.813 24.94676 14.13236 36.62782

15-04-2019 392.75 393.525 402.2828 384.7672 25.05051 13.47711 36.15721

16-04-2019 407 393.955 404.4022 383.5078 31.389 11.7016 36.83801

18-04-2019 404.4 394.53 405.953 383.107 31.3581 10.87356 37.67138

22-04-2019 394.5 394.61 406.0073 383.2127 28.53626 17.2427 36.74269

23-04-2019 396.5 394.845 406.1921 383.4979 27.01129 16.40541 35.86308

24-04-2019 401.1 395.725 406.0514 385.3986 27.19112 15.1428 35.3343

25-04-2019 395.4 395.79 406.0897 385.4903 25.34184 14.11294 34.84329

26-04-2019 407.2 396.49 407.8925 385.0875 27.04319 12.5523 34.96858

30-04-2019 407.5 396.8375 409.1484 384.5266 27.07778 11.88332 35.25647

02-05-2019 395.55 396.59 408.7894 384.3906 24.27034 17.69521 33.85729

03-05-2019 401.8 396.7675 409.1702 384.3648 22.43314 16.24165 32.58242

06-05-2019 401.3 396.975 409.5424 384.4076 20.64989 14.98935 31.38959

07-05-2019 386.5 396.695 409.9504 383.4396 17.31632 19.8183 29.62874

08-05-2019 382.2 396.3675 410.7271 382.0079 16.11316 21.38898 28.51726

09-05-2019 381.4 395.91 411.5738 380.2462 15.1782 21.96339 27.7852

10-05-2019 385.1 395.81 411.734 379.886 16.85381 20.724 26.5362

13-05-2019 376.3 394.7675 412.8991 376.6359 15.57932 24.1982 26.18845

14-05-2019 380.4 394.0775 413.3165 374.8385 15.12873 22.38399 25.69933

15-05-2019 377.05 393.4275 414.0669 372.7881 14.17585 21.48091 25.32703

16-05-2019 382.5 392.8225 414.0191 371.6259 13.71555 20.22717 24.88825

17-05-2019 389.7 392.67 413.9126 371.4274 17.67759 18.57501 23.28734

20-05-2019 407.7 392.705 414.0491 371.3609 29.31034 15.60923 23.80263

21-05-2019 400.15 392.4925 413.427 371.558 26.80653 17.1233 23.67691

22-05-2019 405.35 393.035 414.7368 371.3332 25.34903 16.19229 23.56016

23-05-2019 410.85 393.7525 416.8412 370.6638 33.80245 13.95406 24.84598

24-05-2019 431.75 395.285 423.8471 366.7229 32.61453 12.13903 26.33925

27-05-2019 435.5 397.29 431.0441 363.5359 33.93796 11.49025 27.98741

28-05-2019 434.3 398.645 436.0522 361.2378 31.72299 11.6517 29.29361

29-05-2019 423.3 399.435 438.2697 360.6003 29.44809 14.34293 29.66505

30-05-2019 426.2 400.9675 441.537 360.398 27.9613 15.12141 29.67489

31-05-2019 423.7 402.0625 443.8893 360.2357 25.35209 16.82086 29.0002

03-06-2019 422.9 403.1425 445.9894 360.2956 24.3074 16.12772 28.37369

04-06-2019 419.1 404.7725 447.4336 362.1114 23.47995 16.90253 27.51042

06-06-2019 411.55 406.24 447.6321 364.8479 22.16341 20.5366 25.81752

07-06-2019 416.6 408 447.9119 368.0881 20.59305 20.65247 23.9837

10-06-2019 416.1 409.55 448.102 370.998 21.75254 19.34971 22.68815

11-06-2019 421.35 411.8025 447.3195 376.2855 20.86612 18.01308 21.59172

12-06-2019 418 413.6825 446.0408 381.3242 19.86696 17.15054 20.57362

13-06-2019 419.6 415.81 443.2482 388.3718 19.12309 16.33175 19.66642

14-06-2019 417.75 417.5725 440.0887 395.0563 18.32881 15.65341 18.82403

17-06-2019 414.2 418.7975 437.2231 400.3719 17.4617 17.04356 17.56602

18-06-2019 422.15 419.52 437.2328 401.8072 20.5104 15.60519 17.28144

19-06-2019 419.8 420.5025 435.6915 405.3135 19.23435 14.63431 17.0172

20-06-2019 433.4 421.905 436.3656 407.4444 23.13052 13.05212 17.79127

21-06-2019 430.8 422.9025 436.897 408.908 22.4778 12.46333 18.56768

24-06-2019 429.45 422.7875 436.5111 409.0639 21.55434 12.42815 19.15967

25-06-2019 433.65 422.695 436.0785 409.3115 19.9469 14.13341 19.00957

26-06-2019 438.65 422.9125 437.2009 408.6241 22.70073 13.34532 19.5056

27-06-2019 440.95 423.795 440.2067 407.3833 24.5833 12.70448 20.38785

28-06-2019 437.1 424.34 441.7797 406.9003 23.18451 15.07818 20.44486

01-07-2019 439 425.105 443.7286 406.4814 23.47604 14.4864 20.67597

02-07-2019 436.75 425.7975 445.0937 406.5013 22.24783 17.08009 20.13769

03-07-2019 435.95 426.64 446.1749 407.1051 21.16705 16.25035 19.63787

04-07-2019 436.2 427.8725 446.4875 409.2575 21.04417 15.24643 19.3763

05-07-2019 436.35 428.86 447.0476 410.6724 19.83311 15.14206 18.95031

08-07-2019 425.9 429.35 446.5937 412.1063 17.50901 22.51366 18.4899

09-07-2019 428.5 429.7075 446.5446 412.8704 16.75038 21.53819 18.06237

10-07-2019 430.9 430.3525 446.2641 414.4409 18.45808 20.51585 17.14934

11-07-2019 426.55 430.7 445.911 415.489 17.16579 21.15392 16.66778

12-07-2019 427.05 431.165 445.2349 417.0951 15.83889 20.20584 16.34261

15-07-2019 422.3 431.57 443.9484 419.1916 14.90163 21.09869 16.40484

16-07-2019 424.6 431.6925 443.7219 419.6631 15.60069 19.45756 16.01888

17-07-2019 424.7 431.9375 443.1167 420.7583 14.96686 18.66703 15.66048

18-07-2019 418.65 431.2 443.8255 418.5745 13.89772 21.79819 16.12278

19-07-2019 410.3 430.175 445.8882 414.4618 12.47607 27.33754 17.63741

22-07-2019 411.5 429.2775 447.0771 411.4779 11.54252 28.9473 19.44799

23-07-2019 411.95 428.1925 447.4552 408.9298 13.58133 27.36323 20.46313

24-07-2019 408.5 426.685 447.1814 406.1886 12.3844 31.87316 22.14682

25-07-2019 409 425.0875 445.8808 404.2942 13.19192 29.53492 23.29705

26-07-2019 415.75 424.02 444.4048 403.6352 16.65088 26.84368 23.30688

29-07-2019 429.35 423.5375 442.8584 404.2166 26.39711 22.80168 22.1641

30-07-2019 425.35 422.9675 441.2942 404.6408 25.7683 20.14354 21.45604

31-07-2019 424.6 422.4 439.7087 405.0913 24.06363 19.95028 20.591

01-08-2019 417.05 421.4425 437.6185 405.2665 21.40362 25.17301 19.69828

02-08-2019 410.6 420.155 435.4078 404.9022 19.57095 26.58816 19.37713

05-08-2019 402.65 418.9925 435.8602 402.1248 17.61756 30.4876 19.90405

06-08-2019 410.25 418.08 434.7556 401.4044 19.62257 28.31511 19.77754

07-08-2019 408.4 416.955 433.0134 400.8966 20.8436 26.63737 19.23645

08-08-2019 414.4 416.3475 431.7848 400.9102 19.09953 25.85348 18.9356

09-08-2019 420.15 416.0025 430.7246 401.2804 22.02231 24.43844 17.95451

13-08-2019 410.25 415.4 430.0229 400.7771 20.15832 25.97815 17.57307

14-08-2019 417.3 415.035 429.0424 401.0276 18.88258 23.90347 17.15606

16-08-2019 418.95 414.7475 428.1423 401.3527 17.86673 22.6175 16.76883

19-08-2019 423.4 414.985 428.832 401.138 22.20306 21.22439 15.73203

20-08-2019 416.9 415.315 429.0056 401.6244 20.54346 24.84962 15.28591

21-08-2019 412.05 415.3425 429.003 401.682 19.3772 24.7972 15.07045

22-08-2019 399.1 414.7 430.1269 399.2731 17.47626 30.85542 15.97128

23-08-2019 395.4 414.045 431.5524 396.5376 15.47992 35.20434 17.6102

26-08-2019 411.65 414.1775 431.5638 396.7912 19.8585 30.69263 17.88319

27-08-2019 418.6 414.32 431.807 396.833 22.72822 28.94543 17.46522

28-08-2019 412.95 413.5 429.4938 397.5062 21.46227 28.30323 17.19959

29-08-2019 404.4 412.4525 427.9138 396.9912 19.6602 32.31672 17.71036

30-08-2019 409.65 411.705 426.1025 397.3075 19.68801 30.26427 17.95767

03-09-2019 392.15 410.46 427.0507 393.8693 17.50478 33.82403 18.94595

04-09-2019 397.5 409.805 427.3777 392.2323 16.47353 32.52624 19.93272

05-09-2019 389 409.1225 428.7996 389.4454 15.51447 31.79699 20.96721

06-09-2019 391.35 408.1775 429.3826 386.9724 15.28948 30.68325 21.86131

09-09-2019 395.45 407.53 429.4841 385.5759 17.94517 28.47635 21.92021

11-09-2019 394.6 406.54 428.9703 384.1097 17.27608 27.41461 21.97491

12-09-2019 402.7 405.6675 427.2087 384.1263 21.20482 25.16153 21.01482

13-09-2019 413.4 405.825 427.5525 384.0975 24.19204 22.87209 19.71409

16-09-2019 412.15 405.5675 426.8397 384.2953 23.28286 21.55304 18.58152

17-09-2019 400.65 404.6525 425.0576 384.2474 21.2309 25.03052 17.84094

18-09-2019 399.35 403.45 421.9488 384.9512 20.00401 24.74627 17.32352

19-09-2019 386.6 401.935 420.756 383.114 18.11462 30.05946 17.85721

20-09-2019 417.5 402.2075 421.7876 382.6274 29.75802 23.97829 17.34996

23-09-2019 446.3 404.5675 432.2657 376.8693 37.7558 20.1613 18.28059

24-09-2019 440.9 406.8425 438.5539 375.1311 34.9363 18.65571 19.14475

25-09-2019 434.2 407.97 441.9252 374.0148 32.96937 19.46553 19.6168

26-09-2019 451.95 409.6375 448.6845 370.5905 37.52364 17.21683 20.86535

27-09-2019 449.2 411.45 454.3224 368.5776 35.94171 16.491 22.02472

30-09-2019 433.7 412.915 456.7643 369.0657 32.80772 20.94599 22.02773

01-10-2019 424.6 413.6625 457.7863 369.5387 28.86154 24.91726 20.9782

03-10-2019 427.3 415.42 458.7286 372.1114 27.22469 23.50411 20.00363

04-10-2019 413.9 416.24 458.7333 373.7467 25.07672 26.33782 18.75

07-10-2019 416.1 417.595 458.1134 377.0766 23.67722 25.12373 17.62244

09-10-2019 436.7 419.8625 459.257 380.468 28.01129 22.5996 17.12746

10-10-2019 423.7 421.275 458.9732 383.5768 25.97005 20.95272 16.66783

11-10-2019 428.55 422.9725 458.6147 387.3303 25.4435 19.87898 16.35425

14-10-2019 428.85 424.28 458.6881 389.8719 25.68069 18.90579 16.27144

15-10-2019 431.85 425.2025 459.3709 391.0341 24.7703 18.23558 16.19455

16-10-2019 435.3 426.36 460.2338 392.4862 25.76987 17.46754 16.40935

17-10-2019 440.6 428.3575 460.516 396.199 26.47348 16.59751 16.87507

18-10-2019 437.8 430.28 459.6097 400.9503 25.47164 15.85291 17.33229

22-10-2019 451.15 433.5075 456.0107 411.0043 30.37483 14.1427 18.69872

23-10-2019 455.1 435.3875 458.5332 412.2418 28.82932 13.35067 19.98429

24-10-2019 454.75 435.81 460.0758 411.5442 27.59646 12.77974 21.17803

25-10-2019 469.1 437.22 465.6509 408.7891 31.3686 11.6865 22.93058

27-10-2019 469.55 438.9875 470.8197 407.1553 31.46794 11.14924 24.6982

29-10-2019 477.4 440.26 476.0613 404.4587 33.46575 10.24518 26.72855

30-10-2019 471.15 441.3575 479.5768 403.1382 31.81529 9.739905 28.61387

31-10-2019 463.05 442.825 482.0471 403.6029 29.15692 13.6312 29.16182

01-11-2019 462.25 444.7075 483.8606 405.5544 28.10126 13.58673 29.56576

04-11-2019 470.5 446.8675 486.737 406.998 29.5407 12.80857 30.27605

05-11-2019 468.35 449.59 487.3619 411.8181 29.307 12.27374 31.0395

06-11-2019 480.7 452.82 489.568 416.072 31.72884 10.94614 32.30096

07-11-2019 478.55 454.9125 492.5509 417.2741 30.37099 10.4777 33.47231

08-11-2019 489.45 458.2 495.8453 420.5547 34.72316 9.444316 35.16958

11-11-2019 496.8 461.6125 500.3002 422.9248 33.60383 8.683239 36.86689

13-11-2019 485.75 464.4575 501.3267 427.5883 30.95475 8.720424 38.23647

14-11-2019 498.65 467.7975 504.3304 431.2646 29.5184 7.95473 39.6156

15-11-2019 499.85 471.025 506.8684 435.1816 32.67443 7.362334 41.30178

18-11-2019 498.35 473.9125 508.7256 439.0994 31.24763 7.040842 42.86752

19-11-2019 493.5 476.6975 508.0905 445.3045 29.1149 10.38018 43.19381

20-11-2019 495 478.89 508.8632 448.9168 28.17736 10.04593 43.49679

21-11-2019 498.25 481.0475 510.0053 452.0897 29.50003 9.309284 44.10599

22-11-2019 496.8 483.15 510.1053 456.1947 27.81956 8.778982 44.67167

25-11-2019 497.8 484.585 511.4466 457.7234 26.39432 8.692996 45.08436

26-11-2019 510.7 486.6425 514.9216 458.3634 33.52948 7.700048 46.3389

27-11-2019 505.5 488.0475 517.1727 458.9223 31.27932 7.183299 47.50383

28-11-2019 519.15 490.4475 521.5533 459.3417 31.05816 6.585763 48.75428

29-11-2019 512.6 492.925 522.7077 463.1423 29.44805 6.244345 49.91542

02-12-2019 510.9 495.3575 522.4134 468.3016 28.24531 7.834798 50.39075

03-12-2019 509.35 497.3 522.3454 472.2546 27.08065 9.1361 50.33053

04-12-2019 529.25 500.345 525.3788 475.3112 35.35855 7.955815 51.2544

05-12-2019 528.1 502.715 528.8679 476.5621 36.59514 7.419773 52.32803

06-12-2019 524.8 505.0275 530.3495 479.7055 34.03898 9.495079 52.61736

09-12-2019 526.5 506.88 532.8171 480.9429 32.571 9.08559 52.88602

10-12-2019 528.7 508.475 535.6939 481.2561 32.02961 8.767296 53.18129

11-12-2019 533.55 510.865 538.0765 483.6535 33.56896 8.315102 53.68939

12-12-2019 535.35 512.7 541.3546 484.0454 33.20515 7.913984 54.24779

13-12-2019 537.05 514.56 544.503 484.617 35.38549 7.515527 55.01319

16-12-2019 539.25 516.605 547.4594 485.7506 34.2151 7.266948 55.72392

17-12-2019 541.15 518.9875 549.6883 488.2867 34.32219 7.040188 56.45496

18-12-2019 541.4 521.3075 551.3823 491.2327 32.53432 8.77208 56.53152

19-12-2019 540.2 523.405 552.5457 494.2643 30.63059 9.968629 56.12873

20-12-2019 546.1 525.87 553.8524 497.8876 34.52692 9.197131 56.25747

23-12-2019 541.3 528.045 553.4879 502.6021 31.6332 9.655535 56.04117

24-12-2019 541.1 529.565 554.2664 504.8636 30.49553 9.308277 55.84031

26-12-2019 538.75 531.2275 553.4617 508.9933 29.33491 10.27605 55.28851

27-12-2019 549.4 532.74 555.6211 509.8589 32.87731 9.300956 55.33197

30-12-2019 543.95 534.3075 555.6209 512.9941 31.74405 8.606084 55.47561

GRAPHICAL REPRESENTATION
1) THE DATA
 2) DATA WITH BOLLINGER BAND

3) ADX CHART

ADX AND BOLLINGER BAND

The ADX indicator is a very useful indicator for determining strength of trend. ADX is based on a moving
average of  price range expansion(The most common setting is 14 days).
ADX is plotted as a single line with values ranging from a low of zero to a high of 100. It is important to
understand that ADX is non-directional; it registers trend strength whether price is trending up or down.

Many charting programs will plot ADX with two additional lines +DMI & -DMI which stand for Directional
Movement Indicator. Basically when +DMI > -DMI then prices are moving up and when +DMI<-DMI then prices
are moving down. ADX will be plotted with these 2 lines to indicate that strength of that price trend.

  ADX < 20-25 it means it is not trending.

 ADX >25-50 is a strong trend
In other words a low reading of ADX means the trend is weak and be choppy trading. As ADX moves above 25
then it can signify a trend is starting and is a good level to watch. As ADX moves above 30 then is showing
strong trending and generally most stocks don’t move much above 40 unless they have a lot of momentum.

ADX indicator is used for indexes especially when doing neutral/range strategies like an Iron Condor. 
ADX can be used with Bollinger bands to know the squeeze period
Here we can see that data is well defined by ADX and Bollinger bands

The FUTURE DATA (from 1/11/19 to 12/4/19)

Close 20_ma_clos Upper Lower pos_directional_indicato neg_directional_indicato
Date Price e Band Band r r adx
01-11-2019 462.25 0 0 0
04-11-2019 470.5 0 0 0
05-11-2019 468.35 0 0 0
06-11-2019 480.7 0 0 0
07-11-2019 478.55 0 0 0
08-11-2019 489.45 0 0 0
11-11-2019 496.8 0 0 0
13-11-2019 485.75 0 0 0
14-11-2019 498.65 0 0 0
15-11-2019 499.85 0 0 0
18-11-2019 498.35 0 0 0
19-11-2019 493.5 0 0 0
20-11-2019 495 0 0 0
21-11-2019 498.25 0 0 0
22-11-2019 496.8 0 0 0
25-11-2019 497.8 28.916 4.963765 0
26-11-2019 510.7 35.81212 4.392727 0
27-11-2019 505.5 33.39274 4.095965 0
28-11-2019 519.15 32.99335 3.753163 0
522.707 463.142
29-11-2019 512.6 492.925 7 3 31.273 3.557464 0
522.413 468.301
02-12-2019 510.9 495.3575 4 6 29.98863 5.267105 0
522.345 472.254
03-12-2019 509.35 497.3 4 6 28.7455 6.681779 0
525.378 475.311
04-12-2019 529.25 500.345 8 2 36.8457 5.814564 0
528.867 476.562
05-12-2019 528.1 502.715 9 1 37.987 5.421101 0
530.349 479.705
06-12-2019 524.8 505.0275 5 5 35.32296 7.644915 0
532.817 480.942
09-12-2019 526.5 506.88 1 9 33.79375 7.313949 0
535.693 481.256
10-12-2019 528.7 508.475 9 1 33.20735 7.05677 0
538.076 483.653 71.4504
11-12-2019 533.55 510.865 5 5 34.69115 6.69152 8
541.354 484.045 71.2513
12-12-2019 535.35 512.7 6 4 34.27182 6.367643 6
71.2702
13-12-2019 537.05 514.56 544.503 484.617 36.40521 6.046023 2
547.459 485.750 71.2877
16-12-2019 539.25 516.605 4 6 35.19739 5.845434 4
549.688 488.286 71.3625
17-12-2019 541.15 518.9875 3 7 35.27406 5.662488 6
551.382 491.232 70.7986
18-12-2019 541.4 521.3075 3 7 33.43142 7.471234 8
552.545 494.264 69.7773
19-12-2019 540.2 523.405 7 3 31.47 8.747282 4
553.852 497.887 69.2789
20-12-2019 546.1 525.87 4 6 35.31075 8.068648 3
553.487 502.602 68.4664
23-12-2019 541.3 528.045 9 1 32.3447 8.622872 3
554.266 504.863 67.7119
24-12-2019 541.1 529.565 4 6 31.17892 8.312083 6
553.461 508.993 66.6312
26-12-2019 538.75 531.2275 7 3 29.98983 9.319859 8
 555.621 509.858 66.1399
27-12-2019 549.4 532.74 1 9 33.47664 8.433835 8
555.620 512.994 65.7787
30-12-2019 543.95 534.3075 9 1 32.29654 7.802648 9
554.013 517.401 64.4326
31-12-2019 538.9 535.7075 2 8 30.75998 11.10961 1
550.537 523.617 62.7085
01-01-2020 536.75 537.0775 4 6 29.05844 12.36607 6
550.665 524.624 61.1076
02-01-2020 540.6 537.645 2 8 27.59582 11.74364 5
550.406 525.958
03-01-2020 538.85 538.1825 9 1 26.51491 11.28365 59.6211
550.249 526.205
06-01-2020 525.7 538.2275 4 6 23.26837 20.031 55.8965
550.888 525.206 52.1178
07-01-2020 522.9 538.0475 6 4 20.73417 19.52796 8
551.222 524.597 49.0782
08-01-2020 525.95 537.91 8 2 18.78373 22.75624 6
47.1092
09-01-2020 546.3 538.5475 552.198 524.897 29.9591 19.35135 5
552.377 525.207 45.2808
10-01-2020 540.25 538.7925 1 9 28.26073 18.25433 9
552.430 525.309
13-01-2020 538.6 538.87 4 6 26.62509 17.55731 43.5125
552.358 525.216 41.3263
14-01-2020 537.6 538.7875 2 8 25.67103 19.80229 2
552.104 524.915 38.8263
15-01-2020 535.6 538.51 3 7 24.31258 21.41932 3
551.834 524.760 36.8518
16-01-2020 537.15 538.2975 3 7 25.39739 20.28809 6
551.674 524.105 34.6575
17-01-2020 532.05 537.89 1 9 23.91705 21.15348 6
20-01-2020 534.85 537.3275 550.61 524.045 26.12562 19.05251 33.3003
550.242 523.387 31.9213
21-01-2020 531.05 536.815 3 7 24.13032 18.20535 7
550.530 521.274 29.8993
22-01-2020 522.85 535.9025 5 5 21.61805 23.23856 2
28.4426
23-01-2020 527.7 535.35 550.355 520.345 19.57757 23.69084 8
548.045 521.099 26.6150
24-01-2020 533.85 534.5725 5 5 23.22362 21.93421 1
547.045 521.429 25.7119
27-01-2020 537.25 534.2375 5 5 26.32977 19.87417 4
546.584 520.820
28-01-2020 528.2 533.7025 1 9 23.4878 22.44082 24.0382
546.367 520.022 22.4840
29-01-2020 526.6 533.195 6 4 21.98457 21.0046 1
545.480 520.069 20.9017
30-01-2020 532.2 532.775 8 2 20.52523 20.38926 5
544.863 519.366 19.6018
31-01-2020 525.65 532.115 4 6 19.08438 20.14489 6
548.625 513.494
01-02-2020 504.6 531.06 8 2 16.02376 29.51713 20.3181
549.256 512.128 20.9831
03-02-2020 515.55 530.6925 3 7 14.39344 26.51394 7
549.364 512.505 19.7961
04-02-2020 530.8 530.935 2 8 21.65391 23.63035 3
18.6088
05-02-2020 539.1 530.575 547.994 513.156 23.09779 21.6764 7
18.0733
06-02-2020 541.6 530.6425 548.229 513.056 25.43928 20.35112 7
547.942 513.127 17.4610
07-02-2020 536.45 530.535 1 9 24.45087 20.20796 4
547.522 513.182 16.4081
10-02-2020 533.95 530.3525 6 4 22.75575 21.5506 1
548.093 513.026 15.6755
11-02-2020 539.75 530.56 6 4 22.8039 20.16068 4
550.420 511.914 15.5369
12-02-2020 549.3 531.1675 1 9 24.83963 18.84005 6
551.363 511.866 14.8816
13-02-2020 541 531.615 7 3 23.15404 20.38403 2
 552.872 511.452 14.1129
14-02-2020 545.8 532.1625 6 4 21.47368 19.77438 1
13.3991
17-02-2020 541.6 532.69 553.814 511.566 20.41231 18.797 1
12.5231
18-02-2020 541.2 533.6075 554.525 512.69 19.33822 18.90416 1
555.757 513.167 11.9619
19-02-2020 544.8 534.4625 8 2 19.9475 18.16874 3
557.135 513.104 11.7787
20-02-2020 547 535.12 5 5 20.83892 17.2589 2
556.863 512.636 11.9137
24-02-2020 529.85 534.75 3 7 18.29691 24.09072 1
556.863 512.911 12.2524
25-02-2020 530.95 534.8875 1 9 16.76799 23.47035 9
12.8578
26-02-2020 523.7 534.7425 556.985 512.5 15.84388 24.12939 6
557.765 510.034 14.2096
27-02-2020 515.35 533.9 3 7 14.73915 28.47303 1
561.281 503.678 16.6505
28-02-2020 497.25 532.48 3 7 12.73565 36.61035 2
561.056 504.053 17.3342
02-03-2020 506.1 532.555 9 1 18.65078 31.90904 6
561.119 503.910 17.9691
03-03-2020 514.75 532.515 4 6 17.27671 29.55817 6
19.2250
04-03-2020 508.35 531.3925 561.974 500.811 15.41072 32.413 8
562.256 497.068 20.3912
05-03-2020 504.5 529.6625 5 5 14.49168 30.48001 8
564.252 489.547 22.5111
06-03-2020 486.35 526.9 1 9 12.52878 37.65559 2
25.4371
09-03-2020 457.75 522.965 571.105 474.825 10.1633 45.48941 8
573.721 465.378 28.1542
11-03-2020 465.65 519.55 3 7 9.207792 41.2127 4
581.430 446.259 31.2863
12-03-2020 425.65 513.845 8 2 7.504619 46.10722 6
580.353 437.126
13-03-2020 447.2 508.74 8 2 5.867385 42.57282 34.4641
585.900 417.769 37.4148
16-03-2020 402.9 501.835 6 4 5.023191 36.44748 6
593.594 392.220 40.5022
17-03-2020 367.25 492.9075 1 9 4.412347 41.16643 7
598.789 368.370 43.5392
18-03-2020 355.05 483.58 9 1 4.019211 43.32219 7
602.172 344.722 46.4871
19-03-2020 338.55 473.4475 9 1 3.542151 43.09597 8
599.568 327.416 49.2245
20-03-2020 345.7 463.4925 9 1 3.217378 39.14458 3
51.9986
23-03-2020 284 450.3425 602.34 298.345 2.735202 43.08672 1
600.483 276.866 54.6248
24-03-2020 296.5 438.675 1 9 2.509004 42.15994 7
592.377 263.567
25-03-2020 316.9 427.9725 3 7 8.499049 37.39162 55.2202
581.751 254.848 54.2303
26-03-2020 330.25 418.3 1 9 13.89526 33.49788 1
569.852 249.197 53.3111
27-03-2020 339.85 409.525 2 8 12.92554 31.16014 3
52.7523
30-03-2020 313.4 400.3325 560.564 240.101 12.14346 32.41057 9
546.790 235.639 52.1835
31-03-2020 323.75 391.215 5 5 11.7858 30.90795 8
529.035 233.034 51.8182
01-04-2020 311.15 381.035 4 6 11.37156 31.59583 5
510.839 229.060 51.9713
03-04-2020 286.65 369.95 2 8 10.61065 35.48465 8
487.948 234.111
07-04-2020 326.1 361.03 3 7 14.03106 32.13072 51.0598
466.148 239.171 49.1570
08-04-2020 318.95 352.66 9 1 17.91861 29.49862 6
09-04-2020 342.7 346.9075 449.065 244.749 16.88779 27.80162 47.3902
 5 5 4

GRAPHICAL REPRESENTATION
1) THE DATA

2) DATA WITH BOLLINGER BAND

3) ADX PLOT
TRANSACTIONS

As we can see on 1st – February-2020 ADX value comes below 20 and also from the
Bollinger band graph we can see that the bollinger band is in a squeeze state and ADX
number represents that the stock price is now not in trend indicating the best time to use iron
condor
As we can see that on 1st – February-2020 and befor the
Bollinger bands are roughly between 510 – 560
Spot price as on 1st – February-2020 504
Option chain on 1st – February-2020
call premium strike price put premium 6.65 530 30.4

0 450 2 4.3 540 37

0 460 3.1 3 550 46.85

46.5 470 4.3 2 560 57.1

39.5 480 6.15 1.5 570 60.6

25.5 490 9.5 1.1 580 72.65

19.9 500 12.6 0.75 590 0

13.9 510 17.25 0.7 600 0

9.75 520 22.6

So
We will sell a put of Strike price 500 (premium =12.60 ) and also sell a call of Strike price
560 (premium = 2)
And;
Buy a Put of Strike price 490 (premium =9.5 ) and also buy a call of Strike price 570
(premium = 1.5)
Here lot size is 1500(assumption)

Option type Strike price Premium Number of lot Buy / Sell Total amount
CE 560 2 1000 SELL 3000000
CE 570 1.5 1000 BUY 2250000
PE 500 12.60 1000 SELL 18900000
PE 490 9.5 1000 BUY 14250000

Calculations on different spot price (as on 27 – February-2020)

Spot price 490 put buy 500 put sell 560 call sell 570 call buy net p/l
480 0.5 -7.4 2 -1.5 -6.4
490 -9.5 2.6 2 -1.5 -6.4
500 -9.5 12.6 2 -1.5 3.6
510 -9.5 12.6 2 -1.5 3.6
520 -9.5 12.6 2 -1.5 3.6
530 -9.5 12.6 2 -1.5 3.6
540 -9.5 12.6 2 -1.5 3.6
550 -9.5 12.6 2 -1.5 3.6
560 -9.5 12.6 2 -1.5 3.6
570 -9.5 12.6 -8 -1.5 -6.4
580 -9.5 12.6 -18 8.5 -6.4

So we can see that whatever may the situation be on 27 – February-2020

Maximum profit can be 3.6 per share
Also
Maximum loss can be 6.4 per share
It implies maximum profit that can be earned during this trade is
5400000 and ;
Maximum loss that can happen during this trade is
9600000 (which has to be present in our account)

Now spot price at 27 – February-2020 is 515.35

And hence we have earned a profit of 5400000