You're listening to the Option Alpha Podcast from Option Alpha.com where we show you how to make

smarter trades learn how the stock market really works and generate consistent monthly

income. Now your host and head trader at option alpha.com, Kirk depluses.

Hey everyone, this Kirkier again from Option Alpha working every single week to make this the most popular investing podcast offered online and in iTunes because it's based on one thing and one thing only and that's helping you guys make smarter trades.

So again, thank you so much for tuning in today on today's episode. We're going to be going back to basics a little bit, but talking about how to calculate break-even prices on iron condors and on ironflies. I still find that this is a huge gap in people's

learning curve when it comes to trading neutral risk defined strategies. It seems like this is one that gets missed a lot

and I really want to make sure that you guys understand

the ins and outs of it.

And also, what we're going to be doing in the closing bell segment

is taking a look at one of our trades we've done in IWM where we've rolled

our position now two months and have increased the credits and now recalculates how we

look at our break-even prices after making adjustments and rolling.

So I think overall it's going to be a good overview and refresher for some of you who have

maybe not reviewed some of the iron condor and iron butterfly type break-evens before.

Now I think the reason that this is so important is because, like I said,

it gets really confusing at first because of the nature of the strike prices.

And what I'm particularly talking about is Iron Butterfly's.

So when people first start out and maybe they sign up for a pro or elite membership

and they first start following some of the trades that we're doing,

they often get confused because they're selling at the

money strikes for creating an iron butterfly. So if the stock is trading a hundred

dollars, we might sell the one hundred strike call and the one hundred strike put.

...