Best Option
Trading Coach In USA
If there was one strategy that I would
recommend using first with options
trading is the Iron Condor
strategy. An Iron Condor is the selling
of two credit spreads for premium. You
sell and buy an equal number of contracts which creates a credit spread. Since you are selling to open with the
spread, you will collect premium from the buyer. On one side of the Iron Condor is the Put
spread and the other side is the Call spread.
Because you are trading two separate credit spreads, you cannot lose
both sides at once if the market moves against you. That’s part of the beauty of the Iron Condor
is it’s impossible to completely lose the trade. The other great part about the Iron Condor is
the fact that you can adjust the trade if you start to lose one side of the
trade.
The Trading Profit teaches Options TradingCoach that guide you how to adjust the trades if the market moves against
you. The Iron Condor strategy has more
than a dozen different ways to adjust depending upon the market
conditions. As you can see in the
graphic above, the Iron Condor has a max profit and a max loss whereas most
options have a max profit and an almost unlimited loss. This difference is because you cannot lose
more than one side of the trade at a time.
Once you place both credit spread trades, your margin actually reduces
and the profit increases!
What you want ideally to happen with an
Iron Condor is for both sides of your credit spread that you sold to expire
worthless so that you keep the entire premium that you sold. It’s kind of like selling high and never
having to buy anything. In the graphic
pictured what happens is the strike price expires between your two short
positions that you sold. Let’s say your
stock price expires at the $50 strike, in that case you will keep the entire
premium that you collected! In our
classes and alert services we strive to collect a 20% return or better on these
positions. The best part is we are only in these positions from 2-4 weeks on
average! The best options trading
professionals all use the Iron Condor in their arsenal and the Trading Profit
teaches you how you can trade like one of the pros with the Iron Condor
Strategy!