If a market-derived recurring income stream fits your investment objectives, you should consider the powerful Iron Condor if you haven’t done so already. Essentially, this is a conservative options strategy combining both a bullish and bearish credit spread on the same underlying stock – and doubling your rate of return potential compared to two unrelated credit spreads.
Substantial profits (up to 8-10%/month) can be banked with Iron Condor trading as long as the price of the underlying stock, ETF, or Index remains between the strike prices of the bull and bear spreads. The investor has the major advantage of option time decay working for him, rather than against him as is the case when traders buy or short options outright.
Iron Condor Strategy is Low Risk
There truly are many advantages to credit spreads in general and Iron Condor credit spreads in particular. Importantly, despite the relatively high rate of return potential for properly selected Iron Condors, they are sufficiently conservative, with defined and controllable risk, that they are appropriate even for IRAs and other retirement accounts.
Learning the “rules” for identifying high-probability Iron Condors, and managing the trades to minimize and control risk, are important considerations if you plan to use this powerful strategy appropriate conservative investors seeking a stream of monthly income.
Some professional traders work with Iron Condors exclusively because of their very high reward-to-risk ratios. Learn the straightforward techniques for identifying the best Iron Condor candidates, and how to best manage the positions once you have established them, and you can be on your way to a gratifying stream of monthly income.
