Warning: The Iron Condor is Risky
Hi option traders and welcome to this article on the risks of trading Iron Condors. Although the Iron Condor can be a great income option trading strategy, it can also be very risky if one does not trade it correctly. All over the internet people preach trading condors close to expiration. Many option traders attempt to bring their Iron Condor into expiration day hoping to make 100% of the original credit. These option traders fail to see the incredible risks that they are taking on, and unfortunately one day they will meet this catastrophe face-to-face.
In the You Tube video that is embedded into this article you will see an Iron Condor placed on the symbol SPY. This is a perfect example of how not to trade Condors.
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 option trade nears expiration it becomes more and more risky. The Delta on the position can change extremely fast because the Gamma is extremely high. This means that the trade is outrageously volatile as it gets closer to expiration, and again, if you are near the short strike just a few days before expiration date, then you will be extremely stressed because you will be in a horrible situation. Please watch the video at the 6 minute mark to see what I am talking about.
To wind things down, 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 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. - 23223
In the You Tube video that is embedded into this article you will see an Iron Condor placed on the symbol SPY. This is a perfect example of how not to trade Condors.
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 option trade nears expiration it becomes more and more risky. The Delta on the position can change extremely fast because the Gamma is extremely high. This means that the trade is outrageously volatile as it gets closer to expiration, and again, if you are near the short strike just a few days before expiration date, then you will be extremely stressed because you will be in a horrible situation. Please watch the video at the 6 minute mark to see what I am talking about.
To wind things down, 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 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. - 23223
About the Author:
Learn the Best Way to trade the Iron Condor at San Jose Options Trading and Mentoring.
posted by X - Men @ 7:14 AM
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