Stock Options – Iron Condor Strategy

May 20, 2009 | Category: Uncategorized

Back when I was working, our company granted stock options as benefits for us employees. It is not much, but at least I get to sell it and get a couple thousand pesos as a bonus every year. Back then, I knew squat about investing. It is so sad that now that Im not working, I have realized I should have spent time investing on stocks. PowerOptions® is the only internet-based data provider that gives investors SmartSearchXL®, a patented decision support technology that identifies the highest return option trades. PowerOptions offers you the convenience and control required to automatically sort, filter, and analyze all 2,900+ optionable stocks and 190,000+ options online to find investments to meet your profit goals. For example, using the iron condor spread strategy, an investor will combine a Bear-Call Credit Spread and a Bull-Put Credit Spread on the same underlying security. By doing this, an investor will potentially be able to double the credit obtained over a single spread position. Since there are two spreads involved in the strategy (four options), there is an upper break even and a lower break even. A profit is made if the stock remains above the lower break even point or below the upper break even point.