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Modidor

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Dictionary Says

Definition of 'Modidor'

An options strategy that consists of buying and selling out-of-the-money calls and puts and is designed to lock in investor returns above or below a designated trading price. The modidor is a modified version of the iron condor, but differs in that there is just one breakeven price. It resembles a broken-winged butterfly when charted.
Investopedia Says

Investopedia explains 'Modidor'

Whereas an iron condor is best used in a volatile environment in the hope that a security will trade within a discernible range, the modidor allows for profits regardless of an issue's volatility. With a modidor, the underlying stock must simply move above (in a bullish scenario) or below (in a bearish scenario) a specific breakeven price.

Directory (Option Strategy)

  1.

    Alligator Spread

  2. Atlantic Spread

  3. Back Fee

  4. Backspread

  5. Bailard, Biehl And Kaiser Five-Way Model

  6. Bear Call Spread

  7. Bear Put Spread

  8. Bear Spread

  9. Bear Straddle

  10. Box Spread

  11. Bull Call Spread

  12. Bull Put Spread

  13. Bull Spread

  14. Bullet Trade

  15. Butterfly Spread

  16. Buy A Spread

  17. Calendar Spread

  18. Call Ratio Backspread

  19. Collar

  20. Collar Agreement

  21. Condor Spread

  22. Contingent Order

  23. Conversion Arbitrage

  24. Covered Call

  25. Covered Combination

  26. Covered Straddle

  27. Credit Spread

  28. Death Put

  29. Debit Spread

  30. Delta Hedging

  31. Delta Neutral

  32. Delta Spread

  33. Diagonal Spread

  34. Dividend Arbitrage

  35. Double One-Touch Option

  36. Fence (Options)

  37. Fiduciary Call

  38. Fixed Dollar Value Collar

  39. FMAN

  40. Forex Hedge

  41. Forex Option & Currency Trading Options

  42. Form 6781: Gains And Losses From Section ...

  43. Front Fee

  44. Gut Spread

  45. Heston Model

  46. Horizontal Spread

  47. Implied Volatility - IV

  48. Interest Rate Collar

  49. Iron Butterfly

  50. Iron Condor

  51. Leg

  52. Leg Out

  53. Long Jelly Roll

  54. Long Leg

  55. Long Put

  56. Long Straddle

  57. Long-Term Equity Anticipation Securities ...

  58. Married Put

  59. Modidor

  60. Multi Index Option

  61. Multi-Leg Options Order

  62. Naked Call

  63. Naked Option

  64. Naked Position

  65. Naked Put

  66. Negative Butterfly

  67. Net Option Premium

  68. Neutral

  69. Option Premium

  70. Outright Option

  71. Overwrite

  72. Overwriting

  73. Positive Butterfly

  74. Protective Put

  75. Put Calendar

  76. Put On A Call

  77. Put On A Put

  78. Put Ratio Backspread

  79. Put To Seller

  80. Ratio Call Write

  81. Ratio Spread

  82. Reverse Calendar Spread

  83. Reverse Conversion

  84. Risk Reversal

  85. Roll Down

  86. Roll Forward

  87. Roll Up

  88. Seagull Option

  89. Sell To Open

  90. Series 4

  91. Short Leg

  92. Short Straddle

  93. Straddle

  94. Strangle

  95. Swing Option

  96. Synthetic Dividend

  97. Variable Ratio Write

  98. VIX Option

  99. Writing An Option

  100. Zero Cost Collar

  101. Zomma

Articles Of Interest

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    Options Trading With The Iron Condor

    This options strategy allows your profits to soar in a sideways market.

  2. Options Trading: The Modidor Spread

    Use this modification of an iron condor to reduce risk and increase your chance at profiting on the trade.

  3. Find Profits By Hedging Iron Condors

    Hedging iron condors with put calendars can help control losses, and can even make an investor more profitable.

  4. Iron Condors: Wing It To Maximum Profit

    Understanding the right way to execute an iron condor can increase potential returns and limit risk.

  5. Should You Flock To Iron Condors?

    This market neutral strategy isn't for everyone. Read on to find out if it is for you.

  6. Iron Condors Fly On Fragile Wings

    Do the rewards outweigh the risks for this trading strategy? Read on to find out.

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