The Comfort Zone - Iron Condors (6 of 8)

  • 14 years ago
http://www.sjoptions.com San Jose Options Presents Iron Condors - The Comfort Zone. The Iron Condor is a very popular options strategy today. It's known for it's high probability, but everyone knows that the risk to reward on this trade is highly unfavorable. One thing that is not pointed out is that although this trade appears to have a high probability, included in this is extreme risk and high stress. When we look at the "Comfort Zone" and safety range, we see that this only covers about 35 to 40% of the probability range. We also take a look at Butterfly Spreads and Calendars. All three of these popular income strategies share a similar "Comfort Zone." Although the Traditional Iron Condor appears to be a high probability trade with low risk, we believe it's not the trade it appears to be. In today's fast-paced market, it's a very risky trade that exposes your portfolio to great risk.

Recommended