Iron Condor Coach

If there was one strategy that I would recommend using first with options trading is the Iron Condor strategy. An Iron Condor is the selling of two credit spreads for premium. You sell and buy an equal number of contracts which creates a credit spread. Since you are selling to open with the spread, you will collect premium from the buyer. On one side of the Iron Condor is the Put spread and the other side is the Call spread. Because you are trading two separate credit spreads, you cannot lose both sides at once if the market moves against you. That’s part of the beauty of the Iron Condor is it’s impossible to completely lose the trade. The other great part about the Iron Condor is the fact that you can adjust the trade if you start to lose one side of the trade.

The Trading Profit teaches options trading strategies that guide you how to adjust the trades if the market moves against you. The Iron Condor strategy has more than a dozen different ways to adjust depending upon the market conditions. As you can see in the graphic above, the Iron Condor has a max profit and a max loss whereas most options have a max profit and an almost unlimited loss. This difference is because you cannot lose more than one side of the trade at a time. Once you place both credit spread trades, your margin actually reduces and the profit increases!

What you want ideally to happen with an Iron Condor is for both sides of your credit spread that you sold to expire worthless so that you keep the entire premium that you sold. It’s kind of like selling high and never having to buy anything. In the graphic pictured what happens is the strike price expires between your two short positions that you sold. Let’s say your stock price expires at the $50 strike, in that case you will keep the entire premium that you collected! In our classes and alert services we strive to collect a 20% return or better on these positions. The best part is we are only in these positions from 2-4 weeks on average! The best options trading professionals all use the Iron Condor in their arsenal and the Trading Profit teaches you how you can trade like one of the pros with the Iron Condor Strategy!

The Trading Profit was founded in 2014 by Jeff Tompkins, a professional stock and options trader. Jeff has a BS in Finance from Santa Clara University and over 15 years of experience trading the markets.