There are even strategies that work in up, down, and stagnant markets. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Only deposit and trade with money you can afford to lose. This being the case, many of the brokers who offer their services are not yet regulated. Please enter a valid email.
The date you will want to place your trade in the 3rd Friday of the month. This is the date that options expire. The reason you need to wait for this date is so that you'll have exactly one month to invest your money. This ensures consistency, as you will be repeating your trade on the same date each month.
Next, you'll need to choose what you are going to invest in. Because the iron condor strategy works best in a stable market, choosing an index fund works best. Now you'll place your trades. The iron condor strategy makes money by selling a call and a put on the same index fund. Your hope is that the price of the index fund will never go above or below This is where the second part of the iron condor strategy comes into play.
Because your loss potential is limitless if you sell the aforementioned call and put, you need to put some insurance policies on your sold options. The key is to sell your calls and puts at the right strike prices.
Government Required Disclaimer - Commodity Futures Trading Commission Futures and Options trading has large potential rewards, but also large potential risks. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don't trade with money you can't afford to lose.
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