Iron Condor – How To Keep From Getting Spanked

In order to properly trade the iron condor, you need to have a game plan in place first regarding adjustments. Before you even think about what strikes you will use you should have this management plan already in place. What if the market suddenly had a big move that was unexpected and put your account at risk? Just a couple of these can annihilate your account.

This trade can also be looked upon as a strangle trade that has been sold only with added wings for protection. A “strangle” is where a trader buys an an out-of-the-money call as well as an out-of-the-money put option. Strangles’ premiums are less than those of straddles due to the fact that the contracts are out of the money. Many traders who use this strategy prefer to think of it as two credit spreads: a put spread below the market paired with a call spread above the market. Your paired positions are the condor’s wings.

The reason it is so important to have a sound management plan in place before such a move is due to the risk to reward ratio that the iron condor strategy carries with it. This is largely because the way to success with the iron condor is by figuring out an approach that is high probability (you are probably right about what you anticipate). So a large movement one way or the other, or even just one that is larger than you hoped for or anticipated, threatens to cost you big time.

Steps to winning with the Iron Condor Option Strategy.

- Know that there are different ways for adjusting iron condors. You do not need to follow any certain ‘way’ or methodology either. 


- Protecting your profits and your account should always come first. 


- Don’t ever let a tiny loss grow into a big out of control loss. 


- Don’t lose sight of the bigger picture of how small consistent wins can be very profitable over the long term.

Your key to success in trading this strategy is consistency in gaining profits. Don’t forget that the most important thing is to keep your profits and your trading account safe at all times. Be ready to adjust your iron condor positions to hedge, stop losses, or in anticipation of trouble when there is the real possibility of damage to your iron condor option position.

When I was just starting out trading iron condors, I many times found myself booking impressive returns month after month – then always seemed to wind up somehow giving those gains back to the market during the usual one or two wild months the market threw at me. That all changed however when I learned this super easy method for trading the iron condor. After discovering the methods taught at this iron condor website, I now know exactly what to do when a problem month comes along to keep from losing the rest of my iron condor profits I’ve accumulated throughout the year.

Mr. Ted Nino is an option selling loony – particularly fervent with trading the iron condor . Visit his iron condor Training Website to watch more about his Topnotch Smooth Plan to play the weeklys for ongoing gains.