Options And Making Money
The "Iron Condor" is a negative Vega option spread, meaning that it benefits when the IV on the underlying traded is going down. This usually happens if the underlying price is rising. Right now the market is somewhat bullish. With a negative Vega spread this could be the right time to use the "Iron Condor" strategy, but make sure that the IV still has room to drop. If IV hits support, then watch out because it might just rise on you and this will really hurt the Condor.
Since the "Iron Condor" is a negative Vega strategy, this should be the right time to use this income option spread (when we wrote this article the volatility in the market was dropping). Today's market has made it a pretty decent time to manage this option spread now that the volatility has been moving downward, and the markets have become a calmer place to be. Because of this mellow market many of the income traders have been making money with the stock market over the last few months.
It is times like these that make the "Iron Condor" such a popular option strategy. When the underlying simply trends and stays within a tight price range, you can make money almost every day with the "Iron Condor" spread. This is one of those times that the stock market will give us the chance to really enjoy our income option strategies. It is a great way to make money. At times you will have a steady income and live with very little stress, but obviously the market will not remain the same forever.
Now, I have to say, that I have had the chance to learn a much better, very different, and safer way to trade the "Iron Condor". I learned this revolutionary way of trading by studying with San Jose Options. While most option teachers teach you a more aggressive way to trading the Iron Condor, I now can sleep longer in the mornings and live with less stress, knowing that my option trades are not being exposed to high risk, and knowing that my portfolio is safe. While other people have to get up at the opening of the stock market each day because they may have to make some changes to save their money, I can sleep in.
With this new way of conservative trading I have been making an easy 10% for the last few months and believe me, I haven't had to make many changes at all in my trades. I have been able to put the trade on and walk away letting the trade and my money work for me. Before, with the more aggressive way I was trading this option spread, I was making several adjustments each week. With this new trading technique not one single time has the market ever hit my adjustment point. Let me tell you, I am really enjoying the stock market and my trading now.
Article Source: FxTradingStock.com
About the Author
Learn more about Options Classes that can change your life. Stop by the Options Traders Cafe and find out what trading options is all about.
by: Donald Scott
Total views: 45
Word Count: 500
Date: Fri, 28 May 2010
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