When the volatility goes down and the major markets are going in an upward trend, you may say that this is the perfect time to use the condor strategy. For your information, the Condor is a negative Vega option spread, meaning that you can make more using the Condor when the volatility drops.

What a tragedy! In a single day, the Dow fell 1,000 points, made a recovery, then closed at 347 points down. What could cause something like this to happen? It’s being said that it was just a computer glitch. Or it could have been someone clicking the 1 Billion button on their desktop instead of the 1 Million button. What makes it possible for a $42 stock to sell for one cent for a few minutes during a trading day? Was this really an error, or could this have been stock market manipulation?

Hi, I hope that your portfolio is growing. This is part two of a series of six articles including a video for each article. If you are interested in learning how to trade options, I recommend you watch all six videos.

Maximum Safety and Maximum Rewards have been the motto of San Jose Options mentoring program for quite some time. But how did this concept come about? I’m here to tell you just that.

Credit spreads have a high mathematical likelihood of achieving profitability. So why don’t I consider them one of my favorite types of trades? Because they also have a high probability of risk, and that means stress. Credit spreads are highly directional and that by itself implants the kind of risk into the trade that you have to watch like a hawk. Still, many option traders like credit spreads and will continue to use them regardless of my warnings. So here I present a very simple adjustment strategy you can apply to credit spreads to lock in your profits when they do happen to work out as planned. This will help reduce the riskiness of these trades.

I had a fascinating conversation today with an option trader who is still seeking that magic secret to making consistent returns with option trading. He said many things that made a lot of sense.

Since the Iron Condor is a negative Vega strategy, this should be the right time to use this income option spread. But what is negative Vega anyway? When is the right time to use this Iron Condor spread? If you do not know that answer, then you may want to watch some of the free videos on the Option Greeks that you can find on the San Jose Options’ website. Anyway, now that the volatility has been moving downward and the markets have become a calmer place to be, this makes it much better to manage this option spread.

If you want to jump start your investments, you will need to learn the basics of option trading. Take a careful look at the choices you have while investing with options; the two basic option vehicles are “calls” and “puts”. When you think that the market will go down in a short period of time, then you should consider “puts”. You should buy “calls” when you think the index or stock is going up quickly.