Iron Condor - Owe, That\"s Gonna Leave A Mark...

The Iron Condor is perhaps the most dangerous option strategy around.

The thing is, when rookie option traders first hear of this strategy (perhaps from a late night infomercial or free hotel seminar conducted by slick salesmen touting it as the greatest thing since sliced bread) – very few seem to able to resist the temptation to jump right into trading them head first – with actual real hard earned money on the line – and usually way too much of it.

And usually what winds up happening is that the market promptly snaps off their arms and legs, smacks them across the face with a two by four, then starts to jab them repeatedly in the eyes. In other words – they wind up getting really hurt.

Now stop.

Before you start to get the wrong impression, please, let me clarify something here.

I LOVE iron condors.

And I think it REALLY IS a good solid trade.

And those claims and stories of ten percent monthly gains and ninety percent probabilities? They are absolutely true.

The big problem is that there is some very important information being left out of those iron condor claims and stories. Information that I\’m sure would keep a lot of rookie option traders – who frankly just don\’t know any better – from blindly making that \’over-confident\’ leap into the iron condor abyss.

See, while it may be true that the iron condor and credit spread strategies can kick off yields of over ten percent monthly and that they favor the trader by offering high probabilities of winning (in some instances as high as 80 and 90 percent) – what isn\’t being talked about is the risk to reward ratio of these trades – which can be as high as 10 to 1.

10 to 1! That means that in order to try and make just one dollar, you need to be willing to risk ten. Or, put another way – in order to make 100 dollars, you need to risk 1,000 dollars. Or – risk $10,000.00 to hopefully make just $1,000.00!

And as my dear old mammy used to say: \’that smells a lot like an awful bad egg\’. Which in fact it is. That risk to reward ratio is nothing but a low down, no good, smelly rotten deal!

Because once you do the math you find that even with those glorious monthly returns with 80 to 90 percent probability of winning – all it takes is just one problem month to come along and cause a loss that will completely obliterate the 8 to 9 wins you\’ve managed to rack up – as well as potentially the rest of your entire account!

But…

All is not lost…

As I mentioned earlier – I really do LOVE trading iron condors.

And – I consistently make money from it.

So obviously there\’s a way around that horrible risk to reward issue and the inevitable problematic losing months.

And yes, there certainly is.

It all has to do with the management of the trade.

As soon as you discover the \’right way\’ to place these trades initially – and then how to properly go about managing and adjusting them – that risk to reward dilemma instantly vanishes and goes away.

You just need to take the time BEFORE jumping into the iron condor pool to equip yourself with this little bit of knowledge. A few simple \’tricks of the trade\’ – so when those problem months DO come along (and they WILL believe me) – you will know exactly what you need to do to immediately squash that threat, easily adjust yourself out of the problem, and experience the iron condor for all it\’s \’really\’ cracked up to be.

Ted \’The Spread is an option selling freak – obsessed exceedingly with trading the butterfly spread . Visit his iron condors site to take a look at his super duper uncomplicated way of playing the weeklys for steady income – and other fantastic option income \’stuff\’.

Iron Condor - Owe, That\"s Gonna Leave A Mark...

Read More Here... Iron Condor - Owe, That\"s Gonna Leave A Mark...