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The Broken Wing Iron Condor (BWIC) strategy shares some characteristics with both Iron Condors and Broken Wing Butterflies. Unlike a conventional Iron Condor, the distance between the Long and Short strike prices is wider on one side than it is on the other. The additional with transfers risk from one side to another, as such, while Broken Wing Iron Condors are non-directional, they do have a directional bias which is reflected in the risk/reward.

BWIC positions are Theta-positive and Vega-negative, this means they benefit from time decay and can lose value if Volatility increases. As they are balanced in terms of Long/short options, they are profit-limited, risk-defined trades, but note that one side is more exposed than the other.

Broken Wing Iron Condor
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Contributed by: Ralph Windsor

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