Please take the time to think about an iron condor trade before placing the order with your broker because your chances of having a profitable outcome increase considerably when you plan carefully. I'm sure many readers already feel this is a 'no-brainer' strategy that's almost guaranteed to yield good profits.

While it's true that buying iron condors leads to profits most of the time, it's not that simple. Losses can be significant and must be managed skillfully to prevent those occasional losses from overwhelming your gains. Please take the time to consider each of these variables:

• Choose an appropriate stock or index



• Choose the expiration month. The time remaining before the options expire makes a difference in risk parameters.



• Consider the timing. Is this a good time for a market neutral strategy?
For many traders, it's always a good time to be market neutral.


• Choose strike prices. Near the stock price (CTM), very far away from the strike price (far out of the money, FOTM), or somewhere in-between.



• How much cash should you collect when opening the iron condor position?



• Should you choose American style or European style options? If you choose European, be certain you understand the differences.
  
  

There's additional disucssion in my blog.

Follow these links for the details:

• Part I



• Part II



• Part III



• Part IV