Iron Condor can be described as an option spread strategy that is constructed from other spread trades namely; bear call and bull put. Basically, it is a bet that a particular stock will not trade either below or above specified levels during a certain duration of time. In the instance that the closing of the stock comes up at expiration within that specific range, the trader gets to retain their maximum gain. This could be very profitable if the ROI basis is used and for a short duration such as that one. Like [click to read the rest…]
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Being cautious is one of the options that one would consider when trading on the stock market. With this in mind though, it is important to note that just as in other commercial transactions, the stock trading has its own share of risks. In the event that a wrong investment decision is made, the losses incurred could be enormous. It is not advisable for any investor to make speculative investment decisions without evaluating all the possible end results of the action. If any speculative investments are made, then the investor should be aware that they could loose all their investments.