The Iron Condor Spread Strategy | ** An Anonymous Journal **

Monday, September 17, 2007

The Iron Condor Spread Strategy

My friend, Warren, read my past few post about investing in KLSE and Amanah Saham bonds. He said that KLSE is quite risky when the market is choppy and especially this week when everyone has adopted the wait and see attitude which depresses the market. As for Amanah Saham bonds, let's just say that they don't have such a good reputation.

Warren told me that he is investing into options which he says carries less risk especially when he uses the iron condor spread strategy. I have not heard of it before so he told me that I could read up on this from the website of PowerOptions under Strategy Menu.

According to Warren, PowerOptions provide a full suite of facilities for options investors to find, compare and analyze over 250,000 options. He said that although options trading is too risky for some people, by using the iron condor spread strategy, he managed to reduce the risk because investors would profit as long as the stock price remains above the lower break even point OR below the upper break even point.

This sounds like something I should do some research on. I certainly would like to cut down on risks. I think as I grow older, my heart gets weaker :D

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