Iron condors, iron butterflies, and butterflies profit when a stock stays inside a range. The collar does the same job for stock you already own, fencing in both the floor and the ceiling. Every structure here has a defined worst case on both sides.
Built for traders who want the worst case known first
Range trades are where a lot of experienced traders spend time, because most stocks spend most days not trending. They are also short-volatility trades, which means a trending tape can walk right through them. This category teaches both sides of that.
You do not have a strong directional view, but you have a view on how far a stock is likely to move
You want defined-risk alternatives to selling naked premium
You own stock and want to bracket it with a floor and a ceiling
You want to understand how to manage a test of one side instead of hoping
Every structure below is drawn as a risk map before a single number is discussed.
What is inside
Four structures for a range
The lessons compare the profit zone, credit or debit, and management plan of each structure so you can match the tool to the range you expect.
A range trade is a bet that nothing much happens. The lessons spend as much time on what to do when something does happen:
Check the calendar first: no earnings or major macro release inside the window
Size off the max loss of one side, not the credit
Decide in advance what a test looks like and whether you close or roll
Take a large share of max profit early rather than holding for the last few dollars
The Wolf Eye rules
Know the worst case first. Max loss in dollars, before entry.
Size off the max loss. 0.5% to 1% of the account per idea.
Write the exit before the entry. Kill a failed thesis at the close.
Bucket correlated names. 1% to 1.5% total.
How it fits
How this category fits the Wolf Eye path
The free Field Manual introduces the iron condor. The Options Courses Pack ($297) covers all four structures here in full, with videos. The Service shows how a neutral idea sits next to directional ones in a daily book.
Because the stock cannot finish below the put spread and above the call spread at the same time. Only one side can lose at expiration.
Why is the collar on this page and on the protection page?
Because it does both jobs: it protects a stock position and it brackets that position into a range. The lesson covers both uses.
Is this investment advice?
No. Everything on this page and inside the products is education and research. Examples use a hypothetical ticker, XYZ. You decide what, if anything, fits your own account.
What happens after the $9 trial?
The trial runs for 3 days. After that it continues at the plan shown on the checkout page unless you cancel before it ends. Full plans are $97 per month or $997 per year; see the Service page.
Education disclaimer. Wolf Eye Options is an education and research publication. Nothing on this page is investment advice, a recommendation, or an order to buy or sell any security, and nothing here is personalized to your situation. Options involve substantial risk and are not suitable for every investor; an option can expire worthless and you can lose the entire premium paid, and some structures (such as covered calls and cash-secured puts) carry the downside risk of owning stock. All trade examples are hypothetical, use the placeholder ticker XYZ, ignore commissions, fees and assignment risk, and are shown only to explain structure and risk. No results, returns, or win rates are claimed or implied. Before trading options, read Characteristics and Risks of Standardized Options published by the OCC, and consider consulting a licensed professional.
