Want to gain your personal financial freedom, even during in these trying economic times? If you are willing to handle your personal expenses responsibly, then using the Iron Condor Spread, one of the best option trading tips available, your money can be put back to work for you. Time may be needed, but the rewards for your patience are often worth it.
Compared to other option trading systems the Iron Condor Spread is more advanced, because it results in higher profits, and lowers the potential for loss. On the same underlying security the Iron Condor Spread uses a spread of bear-call and bull-put options. Built out of the Condor Spread, The Iron Condor Spread yields a net credit through the doubling of credit on a single spread position.
How does this option trading tip work to make you a profit? It works by using two spreads, which creates two separate break-even points. A lower break-even and an upper break-even. Anytime a stock's price stays above the lower break-even and beneath the high break-even, you can count on profit being generated.
Before embarking on this option trading tip, make sure you have plenty of available cash in your account before you start. Many online option trading brokers will not let you enter this kind of spread without the proper funds needed to fulfill the margin requirements.
What are the advantages of an Iron Condor Spread? 1)Enjoy an uncovered position by not owning any stock. 2) This option trading tip is for a completely neutral strategy. 3) There is an increase on potential returns thanks to the call and put options. * Controlled risk and lower potential risk due to double credit
Use the Iron Condor Spread if the price of the underlying asset is not expected to change, or change very little throughout the option's life. When the underlying asset is equal to the middle strike, the maximum amount of profit is achieved at expiration. This option trading system allows an admirable range of customization. The following is the profit calculation:
Maximum Profit = Net Credit Profit % = (Credit gained from short legs/greatest difference in strike) x 100 Max Loss = Greatest difference in the consecutive strike a" net credit This formula allows a maximum profit that is limited to the gained net credit. As for maximum loss, it is limited to the calculated maximum loss.
Remember, the benefits of the Iron Condor Spread can be plentiful but be forewarned: gaining profits from the Iron Condor takes a lot of time and monitoring, and necessitates the proper analysis for entry. Furthermore, remember that high trading levels are required. Traders with lower trading levels cannot execute the Iron Condor Spread strategy. - 15465
Compared to other option trading systems the Iron Condor Spread is more advanced, because it results in higher profits, and lowers the potential for loss. On the same underlying security the Iron Condor Spread uses a spread of bear-call and bull-put options. Built out of the Condor Spread, The Iron Condor Spread yields a net credit through the doubling of credit on a single spread position.
How does this option trading tip work to make you a profit? It works by using two spreads, which creates two separate break-even points. A lower break-even and an upper break-even. Anytime a stock's price stays above the lower break-even and beneath the high break-even, you can count on profit being generated.
Before embarking on this option trading tip, make sure you have plenty of available cash in your account before you start. Many online option trading brokers will not let you enter this kind of spread without the proper funds needed to fulfill the margin requirements.
What are the advantages of an Iron Condor Spread? 1)Enjoy an uncovered position by not owning any stock. 2) This option trading tip is for a completely neutral strategy. 3) There is an increase on potential returns thanks to the call and put options. * Controlled risk and lower potential risk due to double credit
Use the Iron Condor Spread if the price of the underlying asset is not expected to change, or change very little throughout the option's life. When the underlying asset is equal to the middle strike, the maximum amount of profit is achieved at expiration. This option trading system allows an admirable range of customization. The following is the profit calculation:
Maximum Profit = Net Credit Profit % = (Credit gained from short legs/greatest difference in strike) x 100 Max Loss = Greatest difference in the consecutive strike a" net credit This formula allows a maximum profit that is limited to the gained net credit. As for maximum loss, it is limited to the calculated maximum loss.
Remember, the benefits of the Iron Condor Spread can be plentiful but be forewarned: gaining profits from the Iron Condor takes a lot of time and monitoring, and necessitates the proper analysis for entry. Furthermore, remember that high trading levels are required. Traders with lower trading levels cannot execute the Iron Condor Spread strategy. - 15465
About the Author:
TheScienceOfTrading.com provides 90 free minutes of videos on option trading systems and provides a complete and detailed option trading course for beginners to experts.
