Risky Income with Iron Condors
4:58 AM
Thanks for checking out this article on option spreads. Within this writing we'll be looking at the risks of trading an iron condor.
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 spread gets closer to expiration it becomes more volatile and more risky. Even though the trade might be yielding a profit, the option trader can lose all of the profit and more in one single day. This is because of the option Greeks. The Gamma is extremely high which causes the Delta position to change in an uncontrollable manner. Please watch the video at the six minute mark to understand better what I am talking about.
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.
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 spread gets closer to expiration it becomes more volatile and more risky. Even though the trade might be yielding a profit, the option trader can lose all of the profit and more in one single day. This is because of the option Greeks. The Gamma is extremely high which causes the Delta position to change in an uncontrollable manner. Please watch the video at the six minute mark to understand better what I am talking about.
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.
About the Author:
To learn a conservative way to trade options, please visit San Jose Options to get started in the right direction. For free Option Trading Videos click here.
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