Trading CTM (Close to the Money) Options: The Trade with a Built-in Edge

Trading CTM (Close to the Money) Options

Introduction

The iron condor is a popular strategy used by individual investors everywhere. Many people tout the money-making ability of this strategy via the Internet. The problem is that the majority of these ‘investment professionals’ make promises that are nearly impossible to keep. There is something about positions with positive theta (money is earned as time passes) that attracts the attention of novice traders, and unfortunately, the scammers who want to take their money. For example, big fees are charged to ‘learn the secrets’ of how to trade iron condors or for specific trade recommendations. There is no reason to pay those fees. You can learn to manage your own iron condor positions. If you ...