When the markets are calm, the Iron Condor strategy is a good trading option – and while many option income traders think that when markets are volatile they need to stay out of the game. Not so. Enter gamma scalping. Here is a little known option trading strategy that can provide consistent profits from markets that seem too wild and choppy to use the usual strategies like iron condors, calendars, and credit spreads.
Of all the many option trading strategies available, the Credit Spread is quite possibly the most popular, most discussed, most utilized – and most DANGEROUS strategy of them all.
Of all the various option spread strategies out there, the iron condor strategy is perhaps one of the most popular, the most talked about, the most used (or misused) – and possibly the most dangerous and misunderstood option strategy of them all.
Everybody has to have money, that is obvious enough, but how do you get it, or enough of it, on a recurring basis to be able to enjoy a reasonably comfortable life? Most people work for somebody else, some others prefer to set up their own company in order to be their own bosses and still others choose to buy and sell intangible goods like stocks and shares. A concept comparable to this last one is trading currencies on the foreign currency exchange, which is usually shortened to Forex or even FX.
When you start a new hobby or even profession, you are bound to come across terminology that you do not understand. The problem with not understanding the terminology of the industry, is that it hinders your development in your chosen field.
The most common options-based strategy is called “covered calls” and consists of owning stock while simultaneously shorting call options against that stock. Although it is a very good way to generate consistent monthly income from a portfolio of ETFs and stocks, it is not without risks.
The Forex market used to be the realm of governments, banks, financial institutions and very rich people. That was not so long ago either. Fifteen years ago, perhaps, maybe even less. The advancement that altered all that is the Internet. These days, the Forex market is played by small companies and even ordinary people as well as the big players of former times.
The foreign currency trading market, better known as the Forex, is by far the biggest market in the world. In excess of two trillion dollars are traded on it each and every day, whereas ‘only’ 50 billion dollars are traded on the world’s principal stock exchange, the New York Stock Exchange, every day. This actually makes Forex bigger than all the world’s stock exchanges together!