Click Here
Home > Credit Spread, Iron Condor, Option Strategy, Vertical Spread > Iron Condors

Iron Condors

If you're new to our site, make sure to watch our FREE TRADING OPTIONS FOR INCOME VIDEO by Clicking Here. Thanks for visiting!

<< Option Trades  Option Trades >>

Vilviestre del Pinar -113

Upon first learning about iron condors, many new option traders will just put them on without having a full plan in place for how to manage the trade if it goes against them – or how and when to close the trade once it is profitable – or if they will even close it at all.

I was guilty of this myself when I first discovered this option selling strategy. I was so stunned and excited at the concept – that I didn’t do what more likely would have been the more responsible thing to do – which is step back, take some time, start studying and learning more about all the ins and outs of the strategy and then start paper trading it.

Instead, I was so ‘sold’ on the pitch given to me by this strategy that I simply just logged into my broker account and slapped one on. And I think this is the exact same thing that happens to a lot of ‘rookie’ iron condor traders when they first learn of this trade.

Unfortunately what inevitably happens is that eventually at some time the stock or underlying being used will go a little wild and the position will start to get into some trouble and losing some serious money and then it is at THAT point that the new iron condor trader will try and get serious about properly educating themselves on how to manage and adjust these trades. The problem is that at this point it is usually too late.

iron condor

Creative Commons License photo credit: A.

Technorati Tags: Credit Spread, Iron Condor, iron condor spread, Vertical Spread, iron condors