Let us assume the lot size of Nifty options is 50. In the above case, the net premium received by the trader will be Rs. Sell a Call Option at a Nifty level of 17200 (at the premium of Rs 40).Sell a Put Option at a Nifty level of 16800 (at the premium of Rs 40).Buy a Call Option at a Nifty level of 17400 (at the premium of Rs 20).Buy a Put Option at a Nifty level of 16600 (at the premium of Rs 20).Let us consider the current level of Nifty for this example and create an iron condor at this level 17000. Traders can buy or sell NIfty options that have a weekly expiry and take an iron condor options strategy on the same. Let us consider trading on the Nifty Index. The iron condor strategy can be explained with the following example in a better way. The strategies used by the trader in an iron condor are a four point plan where they will have to open the following positions. This includes the bull call spread and bear put spread. Iron condor options strategy allows the trader to open four positions. Traders can manage this strategy to adjust as well as limit any chance of an excess loss-making position.Traders can be well aware of the maximum profits that can be made by them and the amount that they can lose.Traders can make the best out of low volatility market conditions and extract a profitable position from the same.Some of the key benefits of this strategy are mentioned below. Iron condor strategy is often used by traders as a low-risk strategy. What are the benefits of the iron condor strategy? However, there is no obligation for the same as in the case of future or forward contracts.Īn iron condor is essentially a four-legged trading technique the uses four types of call put options strategies to take maximum advantage of the low volatility of the financial markets. It is to be noted that these options can be exercised by the traders before the expiry of such options. A call option is an option to buy the shares whereas a put option is an option to sell. To understand this strategy, it is important the basics of options trading which include call and out options. The iron condor is an options strategy that requires a combination of bullish views and bearish views to make a strategic position. Therefore, the volume of the rectangular prism is 4000 cubic inches.Given below is the meaning of iron condor and the related details for adopting this strategy to make a profitable trade. Volume of the rectangular prism = l x w x h Height of the rectangular prism = 10 in + 10 in = 20 in Calculate the volume of the rectangular prism.Ī cube of side 10 inches is kept on top of another cube of the same dimensions to form a rectangular prism. Hence, the swimming pool can hold 2700 cubic feet of water when it is filled up.Įxample 5: A cube of edge length 10 inches is kept on top of another cube of the same dimensions to form a rectangular prism as shown in the image. So, volume of the swimming pool = l x w x h The pool is in the shape of a rectangular prism. To find the amount of water that the swimming pool can hold, we need to find the volume of the pool. Find the amount of water it can hold when filled up. The capacity of the water tank = 60 cubic feetĮxample 4: A swimming pool is in the shape of a rectangular prism and its dimensions are as shown in the image. If it is 3 feet long and 5 feet tall, and it can hold 60 cubic feet of water, find the width of the water tank. So, the volume of the cube is 512 cubic inches.Įxample 3: A water tank is in the shape of a rectangular prism. So, the volume of the cuboid is 200 cubic inches. Volume of a rectangular prism = l x w x h So, the formula l x w x h can be rewritten as, \(a^3\), where, l = w = h = a.Įxample 1: Find the area of the rectangular prism. That is because a cube is a special type of cuboid in which its length, width and height are of the same measure. The formula used to calculate the volume of a cube is derived from the formula for the volume of a cuboid. So, the volume of a cuboid is the product of its length, width and height. We need to know the length (l), width (w) and height (h) of a cuboid to find its volume. Where, a is the length of the side of a cube.Ī rectangular prism, or a cuboid, is a three-dimensional shape with a pair of parallel and congruent bases. Where, l, w, and h, are the length, width and height of the prism. Volume of a rectangular prism = l x w x h.But the formula used to calculate the volume of a cube is derived from the formula used to calculate the volume of a rectangular prism. Since rectangular prisms and cubes have slightly different characteristics, we use different formulas to find their volumes.
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