Why I Love Iron Condors

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January 26, 2012 2 comments

I had a reader the other day ask me why I trade Iron Condors almost exclusively rather than using other strategies. It’s a valid question, so I wanted to answer that question an explain why the IQ Trade Alert service focused mainly on Iron Condors.

NON-DIRECTIONAL – the best thing about trading Iron Condors is that you don’t have to be 100% correct on the direction of the market like you do with some other option strategies. With Iron Condors, you profit if the stock stays within a certain range, so your chances of success are much higher than if you had to correctly predict the direction.

CONSISTENT MONTHLY INCOME – Iron Condors, when done correctly, provide a consistent monthly income. There is absolutely nothing better that watching your account balance gradually increase each month.

AVOIDS OVERTRADING – another thing I like about Iron Condors is you only need to place a few trades every month. I have struggled with overtrading in the past, which is something that diminishes returns for a lot if traders. Iron Condors are like “set and forget” trades as they often don’t require any further action once the trade is placed. I actually find Iron Condors very boring, and I have to remind myself occasionally that I don’t need to be trading every day.

LESS STRESS – in my experience, fewer trades means less stress. Sure, flash crash type events are going to cause you some stress with your Iron Condors, but generally, the days just tick by and your positions continue to benefit from the effects of time decay.

EASY TO MANAGE – iron Condors are actually a pretty simple strategy to manage. It’s easy to set up your trading rules fo entry, exit and adjustment based on predefined criteria.

These are just some of the benefits of trading Iron Condors. If you’d like to learn more about this strategy and start making consistent monthly income, subscribe to IQ Trade Alerts and I will teach you how to do it yourself.

  1. Mariam says:

    Hola! I’ve been following your blog for some time now and finally got the courage to go ahead and
    give you a shout out from Lubbock Tx! Just wanted to mention keep up
    the fanrastic work!

    1. Gavin says:

      Hi Mariam,

      Thanks for commenting and the kind words. Let me know if there’s anything I can hep you with. How long have you been trading for?


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Options Trading 101 - The Ultimate Beginners Guide To Options

Download The 12,000 Word Guide

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