Risky Income with Iron Condors
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Thank you for reading this article on trading options. Today we will be concentrating on the risks of trading Iron Condors. While the rewards of this trade are often times shown, it's not as common that option traders point out the dark side. Be Warned about the Iron Condor If you have a few minutes, I would recommend watching the video that we have included with this article. You will see an iron Condor on the spy each demonstrates the type of iron Condor that can wipe out your trading capital. This is the strategy that is taught by 99% of the courses on the Internet. Don't be misled, and don't fall into the trap. Take a look at this video and see firsthand the stress and the risk involved with this option strategy. As this Condor gets closer to expiration, it might begin to make more money, but at the same time, the gamma increases, making this trade more volatile. This means that it can be more difficult to hold on to the profits. For example, your trade might be up 10%, but if the market makes just one big move, it can all the sudden be down 50% in one day. This again is because of the option Greek called gamma which gets very high on this trade as we approach expiration. In conclusion I hope you have learned some new things about the iron Condor. I hope you can see that it can make money but it can also be very risky. Trading iron condors into expiration can be very stressful. If you are interested in learning a better way to trade this option spread, then I highly recommend San Jose Options mentoring program. They have developed the best iron Condor that I have ever seen. You won't regret giving them a visit.