Unbalanced Condors For The Conservative Option Trader
Since there are many different option traders out there, there are several trading strategies to choose from. Some aggressive traders are known as "day traders". These traders use a lot of money and their trades need constant attention. The Day Trading strategies are very stressful, and they often don't hold a position overnight. A day trader once came to me explaining how he was working sixty to eighty hours a week to have any success in his trades. Obviously, he wasn't having too much success if he was coming to me to find a new way to trade with options.
The other flavor of option trader is one who trades to make money, but doesn't spend endless hours every day in front of a computer. There are multiple types of strategies that can be used to trade like this. One of the more popular strategies is called a Credit Spread. Traders do Credit spreads on stocks and on the indices. Whatever way you choose to trade, Credit Spreads are still very risky as they cannot handle the drastic changes that happen in the stock market.
Now, those are the two common styles of option traders. There is another type of trader that isn't quite as common. This option trader trades over earning reports. It can be a really exciting way to trade options and can prove to be very rewarding. There is a lot of risk and luck involved in trading this way but back testing can help you predict how your over-earnings report will go, but there is still a lot of uncertainty.
All the strategies I just mentioned all come with a great deal of risk. There is another type of option trader out there who is doing his best to manage his savings account. He normally tries to take on less risky trades than other traders. He's more likely to use the two strategies with the least risk available. These strategies are known as Broken Wing Butterfly and Unbalanced Condors and are amongst the least risky trade strategies available for options trades. They can allow trader to trade with minimal risk; in most cases only one to two percent on any given trade.
San Jose Options offers a course that focuses on low-risk option strategies. You may have noticed that options mentoring courses are slowly starting to catch on, but rest assured, San Jose Options has been training students on these strategies, and more, for many years. They specialize in the Broken Wing Butterfly and Unbalanced Condors and their courses are designed for those who are retired and those who wish to invest with options without all the risk. I highly recommend looking to San Jose Options for safer trading strategies.
Article Source: FxTradingStock.com
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Don't be an ordinary Option Trader! Learn safer, innovative strategies with San Jose Options. Check us out online for your free Options Trading Video.
by: Donald Scott
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Word Count: 462
Date: Fri, 2 Jul 2010
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