The iron condor strategy is one of the most popular option strategies available to traders. Unfortunately, it is also possibly the most dangerous.

See here’s the deal: when a new fresh faced option trader first hears of this trading strategy – he or she becomes so enamored with it that they just can’t seem to help but jump right into trading them – risking way too much money – and without much thought of what they are going to do if the trade starts to go wrong.

And it seems that a good percentage of them – if not most of them – promptly wind up getting their groins kicked in, their heads ripped off, their eyes poked out, and getting hurt really, really bad.

Now stop – wait – hold on just a second.

Before you start to get the wrong impression, please, let me clarify something here.

I LOVE iron condors.

I think the iron condor really IS a great trade.

And those claims and stories of ten percent monthly gains and ninety percent probabilities? They are absolutely true.

The big problem is that there is some very important information being left out of those iron condor claims and stories. Information that I’m sure would keep a lot of rookie option traders – who frankly just don’t know any better – from blindly making that ‘over-confident’ leap into the iron condor abyss.

See, while it may be true that the iron condor and credit spread strategies can kick off yields of over ten percent monthly and that they favor the trader by offering high probabilities of winning (in some instances as high as 80 and 90 percent) – what isn’t being talked about is the risk to reward ratio of these trades – which can be as high as 10 to 1.

10 to 1! That means that in order to try and make just one dollar, you need to be willing to risk ten. Or, put another way – in order to make 100 dollars, you need to risk 1,000 dollars. Or – risk $10,000.00 to hopefully make just $1,000.00!

And as my dear old mammy used to say: ‘that smells a lot like an awful bad egg’. Which in fact it is. That risk to reward ratio is nothing but a low down, no good, smelly rotten deal!

Even with the ten percent monthly returns and the high probabilities – all that needs to happen is for a problem month to come along (and it WILL, believe me) – and the next thing you know you’ll be staring at a gigantic loss and a zero balance account!

However…

There is still hope…

Like I said before, I LOVE the iron condor trade.

Over the last ten years it’s been extremely profitable for me.

So apparently, even with that atrocious risk to reward quandary, there must be a method to generate consistent income with this trade.

And there is.

It all revolves around how you go about handling the trade.

As long as you learn the correct way to initially place these trades, then combine that with a super simple management technique and a few easy adjustment tricks – this risk to reward issue can be completely eliminated and no longer presents a problem.

Once you possess the correct iron condor knowledge and know how – and understand how to apply a couple super easy to implement adjustment tricks – you’ll know exactly how to exterminate any problematic market threat that comes your way, allowing you to experience the iron condor trading strategy for all that it’s ‘actually’ cracked up to be.

Teddy Baby is an option selling fanatic – markedly zealous about trading the option butterfly spread. Visit iron condors Website to find out more about his Undemanding Paint By The Numbers Plan for trading the weeklys for consistent profits.