Hi Fred,
I've taken this almost verbatim from my website: An iron condor involves selling two separate credit spreads, a bull-put spread and a bear-call spread, on the underlying security. The funny name is derived from the way a graphical representation of this technique look on paper. The beauty of this options technique is that a double credit is taken in at the outset. Like individual credit spreads, the goal is to have all options expire worthless at which point the entire double credit becomes income free and clear. Iron Condors are usually established with a month or less time remaining on the option so that the full benefit of time decay works for the investor. Hope this helps.
Michael
www.safe-options-
--- In ConservativeOptionS
>
> Please explain what an iron condor is thx
>
> --- On Wed, 1/27/10, fred barbour <barbour2p@.
>
>
> From: fred barbour <barbour2p@.
> Subject: Re: [ConservativeOption
> To: ConservativeOptionS
> Date: Wednesday, January 27, 2010, 8:34 AM
>
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> Â
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> Tom and anybody else reading this:
> Â
> Iron Condors are considered high risk trades.
> Â
> Fred
>
> --- On Tue, 1/26/10, Tom Clark <tec@thomark. com> wrote:
>
>
> From: Tom Clark <tec@thomark. com>
> Subject: [ConservativeOption Strategies] Iron Condors - Conservative Strategy?
> To: ConservativeOptionS trategies@ yahoogroups. com
> Date: Tuesday, January 26, 2010, 10:06 PM
>
>
> Â
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> Are Iron Condors considered enough of a conservative strategy for
> discussion here?
>
> If so than I can only assume that some readers of this group may use
> IC's. I am considering expanding my use of options to include Iron
> Condors and I'm looking for a mentor. I'm not looking for someone to
> teach IC's, I've got the general idea, I just want someone with whom
> I can bounce trade ideas off of and who might just keep me form going
> off the deep end. All of this would be off-line from the group. If
> interested drop me a private email.
>
> Thanks
>
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