Chapter 3. Trading Journal

Using the built-in probabilities associated with Deltas, any generic condor with wings that is stretched far enough will usually make money. Some traders sell condors and just let them sit through expiration simply because of their high probability of profit. They also accept that they’ll get blown out once in a while, but the money they put at risk is so small that they don’t care, as long as the gains exceed the losses.

The managed approach proposed in this book is a completely different animal. There are other ways to increase the probabilities. The first is to patiently wait for the right opportunity to enter a trade. Let a trend run its course and wait for the market to settle down. An appreciation and deeper ...

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