Wednesday, November 23, 2011

I Love Condors Like I Love IV Drops

By Donald Scott


With the volatility going down and the major markets in a current upward trend, you may say that it is the perfect time to use the condor strategy. For your information, the Condor is a negative Vega option spread. It helps when the volatility drops.

Fact is we have been cash-flowing the stock market over the last few months with little work at all. This is a benefit of the Iron Condor strategy. Sometimes the stock market is very mellow; this means that the Condor can make money almost every day. It is the type of option trade that makes money when the underlying stays within a tight price range.

With this style of making money it is like living a dream. Just think how fun it would be to make money while you are reading a good book, swimming or enjoying your favorite cocktail! It is wonderful when the stock market gives us this opportunity to relax and still make an income.

One thing I like about the San Jose Options process to the Iron Condor is that they have a more conservative approach to them. While other courses teach an aggressive approach, they are also taking on much more risk than San Jose Options. They have to adjust much more often too, and this causes a problem in a market that is going up and down a lot. Aggressively trading condors will lead to more adjustments, more stress, more headaches and loosing overall.

For the past couple months, I have been easily making 10% on this technique, 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 make several adjustments, but with my new trading methodology, 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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