August 11, 2010
The Unbalanced Condor: The Unsung Option Strategy
Today I want to talk about a strategy that not many option traders know about which is called an Unbalanced Condor. This strategy has been around for a while I am sure, but for some reason, it’s not very popular. Personally, I have been studying options for over a decade now, and I took many popular courses that you’ll find on the Internet. After spending nearly $50,000 on my options education, I find it rather intriguing and erroneous that most option courses are not teaching this strategy.
I wonder why the Unbalanced Condor has not found its fame. How did this strategy get lost in the midst of all these very intelligent investors? The only answer would be that most option traders are looking to get rich quick, so they overlook this strategy because it requires more patience than others. But the benefit of not losing should warrant a second look.
Doesn’t it sound ideal to trade options is a circumstance where it’s nearly impossible loose money in one direction, and have a nearly one hundred percent guarantee of making money in another? What if I was to say you can also make money on the trade, even if the market doesn’t move? At first glance, this looks like the perfect strategy, almost as if there was no way to lose.
Well, it is possible to do lose something on this trade, and actually, you can lose quite a bit on this trade just like any other option strategy, but only if you do not know what you’re doing. If you get too aggressive and try to make money too fast with it, you can also lose with it. The secret to the Unbalanced Condor is learning to be a patient trader. Once you master the patience and the simple adjustments that go along with this spread, then it’s really hard to lose on this trade. I think you’ll find that your worst-case scenario would result in about a 1 to 2% loss.
At San Jose Options Mentoring, you’ll find experts on this strategy; it’s one of their specialties. At this current moment, I don’t know of any other courses out there that teach this strategy at all. They’ve been developing and redefining this strategy over the years and have developed ways to lock in profits on this strategy as they come. They have developed ways to manage this trade over different types of markets, ways to neutralize the Vega position on this trade while maximizing Theta. They call this trade the “Revolver” for its qualities to combat the stock market.
If you want to learn all of the nuances of this rarely talked about strategy, then I highly suggest you do some research to learn more about it. It’s definitely a great way to minimize risk with options instead of trading the traditional Iron Condors that everyone else does.
Trade Low-Risk Option Strategies, not your livelihood. Learn how to trade the Unbalanced Condor with San Jose Options. Don’t be an ordinary option trader!
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