Iron Condor Spread is a combination of a Bullish Vertical Credit Spread and a Bearish Vertical Credit Spread on the same underlying asset. Depending on how the spreads are put together, option traders may be able to get twice the collect premium from a single spread position. Since the Iron Condor Option Trading Strategy involves both bullish and bearish spreads, there is an upper break even point and a lower break even point. When the underlying asset stays above the lower break even point or below the upper break even point, the investor makes a profit. In other words, the option trader will make money from both spreads as long as the price of the asset is above your bullish short strike and below your bearish short strike. This strategy can be used every month to make sure that your trading business always has a good flow of cash.
The value of option prices goes down over time. Few option traders understand the benefit of trading spreads because it looks too complicated. But it's not.
Iron Condor Spreads is a strategy that doesn't depend on the market. It has positive time decay, negative gamma, and low risk. This trading method can be used by traders with any amount of experience trading options. Depending on your brokering skills and software, you should be able to get these spreads electronically with a single click. When you trade Iron Condor with some brokers, you may even be able to get better leverage.
The IronCondorSpread Newsletter was made to find low-risk options trading opportunities when an index stays in a narrow trading range during the current expiration cycle. There is never more than 60 days of holding time.
When you trade, your only goal is to make money. As a trader, you shouldn't be looking for big profits or thrills. When done right, the iron condor spread can be a reliable source of income. Before taking on new jobs, you should look for jobs that have a very high chance of making you money. If your chances of winning are good, you will probably make money in the long run.
To do this, you should look for options with a higher level of volatility. This means to look for places where the price is too high. Set up a trade position in which you think the underlying asset won't move to a new short strike.
To make sure we always make money, our Iron Condor positions will always have a large range of possible profits on the underlying asset. So, if the underlying price goes up, down, or even stays the same, you will always make money with time decay. Having a big profit range is important because it almost guarantees that we will always make money and it doesn't take much time to keep an eye on our open positions. We like the idea of being able to trade with little stress and work. Our usual goal for each Iron Condor spread is to make between 13% and 18%. Most of the time, profit is made within 60 days.
Iron Condor trading is a good way to trade because it has a low level of risk. You can never lose more than what you set aside for each trade. Even though you have a good chance of winning, you can keep your losses low if the trade goes against you. No matter how rare it is for us to have a losing month, the key to a good trading strategy is to keep losses as small as possible. It's important to make money, but it's at least as important to keep your money.
The IronCondorSpread Newsletter at http://www.ironcondorspread.com is the best website for learning about the Credit Spread and Iron Condor Spread Option Trading strategy.
