Risky Income With Iron Condors
Welcome to this article on trading options for income or as a business. The purpose of this article is to demonstrate the great risk taken on while trading an Iron Condor just before expiration.
This particular strategy can be very fruitful, but it can also lead to very large losses to your trading capital. Trading condors very close to expiration is one of the riskiest ways to trade them.
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 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 six minute mark to see what I am talking about.
Well, let’s exit this article by saying a couple more things. First of all, the condor can definitely make an option trader some decent income, but on the other hand, one bad month can also wipe out a trading account. It’s not an option strategy to mess around with if you do not have the proper training. There are very few option traders who do this trade in a low-risk style. Most option traders take on hazardous risk each month by using this reckless strategy.
To learn a conservative way to trade Iron Condors, please visit San Jose Options to get started in the right direction. For free Option Trading Videos visit their Youtube page.
categories: option trading,stock market,investing,finance,business
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