Unbalanced Condors for The Conservative Option Trader
Since there are many different option traders out there, there are several trading strategies to choose from. Some aggressive traders are known as “day traders”. These traders use a lot of money and their trades need constant attention. The Day Trading strategies are very stressful, and they often don’t hold a position overnight. A day trader once came to me explaining how he was working sixty to eighty hours a week to have any success in his trades. Obviously, he wasn’t having too much success if he was coming to me to find a new way to trade with options.
The other flavor of option trader is one who trades to make money, but doesn’t spend endless hours every day in front of a computer. There are multiple types of strategies that can be used to trade like this. One of the more popular strategies is called a Credit Spread. Traders do Credit spreads on stocks and on the indices. Whatever way you choose to trade, Credit Spreads are still very risky as they cannot handle the drastic changes that happen in the stock market.
Now, those are the two common styles of option traders. There is another type of trader that isn’t quite as common. This option trader trades over earning reports. It can be a really exciting way to trade options and can prove to be very rewarding. There is a lot of risk and luck involved in trading this way but back testing can help you predict how your over-earnings report will go, but there is still a lot of uncertainty.
These styles clearly involve a lot of risk. There is another type of option trader who is managing his savings account and prefers a less risky way of trading than the previous 2 styles. A trader looking to avoid some risk will trade strategies known as the Broken Wing Butterfly and the Unbalanced Condor. These two strategies are two of the lowest risk strategies that can be found in option trades. They allow an option trader to construct trades that have low risk from the start, normally only one to two percent risk is theoretically taken on a given trade.
At San Jose Options, you’ll find a course that specifically focuses on these low risk trading strategies. Option mentoring courses are slowly becoming popular, but San Jose Options has been training students in successful strategies for many years. They take pride and specialize in the Broken Wing Butterfly and the Unbalanced Condors, and their courses are designed to accommodate a trader who may be retired or a trader who wishes to invest with options without the risks other traders have to deal with. To learn safer option strategies, San Jose Options has an amazing options mentoring program and I highly recommend you check it out.
Trade safer! Trade smarter! Visit San Jose Options online today for your free Option Trading Video!
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