The One Sigma Method of Iron Condor Trading
We had an article published recently over at Trading Markets that some of you might not have seen yet, in which we present one of the simplest methods of constructing iron condors. The idea is to select short strikes that are one standard deviation (one sigma) away from the current underlying; trades constructed in this way will have about a 68% probability of success, assuming the price curve over the life of the trade is normally distributed.
So check it out: How to Use Options to Generate An Income Stream
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Iron Condors Part VI, Risk Management Strategies
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Iron Condors Part V, The Importance of Managing Risk
(Stock Trading To Go, 6/11/09)
Sat, Mar 1, 2008 | Jared
Iron Condor, Options Education, Strategy