Fred,
You are right, I meant to respond to Vandollar's question. Sorry, I got lost in the message string. Sorry also for the two posts saying essentially the same thing, the frst one took over six hours to post from the time I sent it, so I sent another. Then, voila, both showed up. And finally to the meat of your point, yes IC's are not for everyone and not for every market. You can lose. I rarely use them. However for certain issues and in certain markets, I will do them. My point was if indeed one were to consider them, then keep a few things in mind to reduce your risk as much as possible.
Michael
www.safe-options-
--- In ConservativeOptionS
>
> Hi Mike,
> I believe your message should be for someone else and yes ICs can be very detrimental to your wallet no matter what anybody says here even when one makes adjustments.
> Fred
> --- On Wed, 1/27/10, optionsmike <michael@...
>
>
> From: optionsmike <michael@...
> Subject: [ConservativeOption
> To: ConservativeOptionS
> Date: Wednesday, January 27, 2010, 5:47 PM
>
>
> Â
>
>
>
> 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- trading-income. com
>
> --- In ConservativeOptionS trategies@ yahoogroups. com, Vandollar <mercdesdrvr@ ...> wrote:
> >
> > Please explain what an iron condor is thx
> >
> > --- On Wed, 1/27/10, fred barbour <barbour2p@ ..> wrote:
> >
> >
> > From: fred barbour <barbour2p@ ..>
> > Subject: Re: [ConservativeOption Strategies] Iron Condors - Conservative Strategy?
> > To: ConservativeOptionS trategies@ yahoogroups. com
> > Date: Wednesday, January 27, 2010, 8:34 AM
> >
> >
> > ÂÂ
> >
> >
> >
> >
> >
> >
> >
> >
> > Tom and anybody else reading this:
> > ÂÂ
> > Iron Condors are considered high risk trades.
> > ÂÂ
> > 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
> >
> >
> > ÂÂ
> >
> > 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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