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June 22nd, 2011 at 1:13 pm
I4real,
I recommend that you don’t jump into the Iron Condors type of trades in a big way till you are more comfortable with options. The key here is that Kojo sets up the trade 5 weeks out at points that should be very safe and still give a 10% return on the capital at risk.. but understand that 90% of your capital is at risk in these trades and if the RUT move strongly in either direction — we are in big trouble and need to put on protection aggresively which has not yet happened since the IncomeTrader Strategy has started at PSW..
Summary — My feeling is that the Iron Condor is a sophisticated trade especially in a volatile market — so tread carefully – i.e. risk v. little capital till you understand the guts of this trade.
FWIW