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Tuesday 20 December 2011

Flowing Cash with Iron Condors

By Donald Scott


While the volatility is dropping and the market is in an uptrend, one might believe that this is prime time to trade the Iron Condor. This is because the Iron Condor is a negative Vega option spread and it benefits by a drop in the volatility.

Actually, over the last few months many income traders have been cash flowing the stock market. It's times like these that make the iron Condor such a famous option strategy. This type of option spread makes money when the underlying simply trends within a tight price range. When this occurs, the iron Condor can make money nearly on a daily basis.

This style of making money is really like living a dream. Just imagine how fun it would be to make money while you are sitting by the swimming pool and enjoying your favorite cocktail. It's wonderful when the stock market gives us this opportunity.

I learned a very conservative way to trade the iron Condor. Fortunately, I studied with San Jose Options, and they taught me a different way to trade this option spread. I previously learned from other courses, but what I was doing was very risky. Now I can trade iron condors with more confidence knowing that my portfolio is safer than it was ever before.

Over the past couple months, I've been making 10% on this strategy very easily, and believe me, I haven't had to do very much at all. I just put the trade on and let my money work for me. The way I used to trade, I would have had to execute several adjustments, but with my new trading technique, the market never hits my adjustment points one single time. So needless to say, I've really been enjoying the stock market lately.




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