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Sunday, February 5, 2012
Iron Condors with Volatility Drops
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.
The fact is that we've been cash-flowing the stock market over the last few months with very little work at all. This is one of the benefits of the iron condor strategy. Sometimes the stock market is very mellow, and this means that the Condor can make money nearly every single day. It's the type of option strategy that makes money when the underlying states within a tight price range.
In times such as these, we can sit back, relax, enjoy our lives, and make money nearly each and every day with the Condor. It's really a fantastic way to live when the 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.
Lately I've been making about 10% per month doing very little adjustments at all. In the past I was doing adjustments nearly every week to my portfolio in order to keep my capital protected. But now I have a safer way to construct iron condors from the beginning, and I have to do less adjustments over all. It's really been nice trading the stock market over the last few months.
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If you want to succeed on the stock market with options, make sure you get a trading education.
Posted by Staff at 10:37:00 AM