Chapter 1. The Horse Race
An iron condor is a complex options trade that creates a “zone,” as illustrated in Figure 1.1, in which a profit occurs over time and within a specific price range. Correctly picking the direction of price movement is not necessary. Understanding the dynamics involved in the trade is the key to long-term success and limited risk.
Figure 1.1. S&P 500 Index chart
Source: OptionVue 6
Too Good to Be True
Too many people trade options without knowing about the range of risks they face, or without first acquiring the knowledge they need. This book addresses that problem with respect to condor trading. Nonetheless, condors ...