The iron condor 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 enamoured 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 unfortunately what always seems to happen to a high percentage of them is that they promptly wind up getting their trading accounts demolished and their heads handed to them on a platter.

Now wait –

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

I actually LIKE iron condors. I like them ALOT.

I think the iron condor really IS a great trade.

And yes, I absolutely believe all those stories and claims you hear swirling around about iron condors generating ten percent plus monthly returns and providing trades that have the probability of winning somewhere in the range of eighty to ninety percent. In fact, I KNOW those stories are true because I see it happen all the time in my very own trading account.

Here is the problem: All those fresh, green and excited new option traders have no idea what they don’t know. This trading options for income thing is like an alien planet – with a whole new set of rules inside a brand new reality. And when the person who has introduced them to this new way of trading just tells them about the good but forgets to tell them about the bad – they wind up jumping in with way too much confidence, misunderstanding, and expectations that are completely wrong.

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 mammy used to say (God bless her soul) – that risk to reward ratio is ‘an awful bad egg’. In fact, it’s an honest to goodness stinking rotten deal.

Just do the math. With a risk to reward like that, even with the great probabilities and wonderful monthly returns – before long a problem month could come along and completely wipe out your entire account!

However…

All is not lost…

As I mentioned earlier – I really do LOVE trading iron condors.

It’s one of my favorite trades – and it continually generates profits for me.

So clearly there must be a way to profitably trade this strategy without allowing that awful risk to reward issue to get in the way.

And there absolutely is.

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

That risk to reward problem quickly becomes a complete non issue as soon as you educate yourself on the proper way to initially set these trades up and how to correctly manage and adjust them.

You just need to take the time BEFORE jumping into the iron condor pool to equip yourself with this little bit of knowledge. A few simple ‘tricks of the trade’ – so when those problem months DO come along (and they WILL believe me) – you will know exactly what you need to do to immediately squash that threat, easily adjust yourself out of the problem, and experience the iron condor for all it’s ‘really’ cracked up to be.

To learn how to properly trade the Iron Condor Strategy for consistent monthly income, go to this Iron Condor website and watch our Free Video and get our Free Report.