Whats better 90% probability or 70% Probability Index Iron Condors and Credit Spreads Options?
There are many index iron condor & credit spread options advisory newsletters on the market today. The index iron condor options strategy is popular because its relatively easy to understand, it doesnt require options analysis software to visualize the trade, and it generates an excellent monthly income of 6% to 10% ROI per month. Most iron condor newsletters fall into two camps, either recommending 70% probability trades or 90% probability trades. A few of the more visible iron condor newsletters have simplified their argument of why one approach is superior to the other, for example by only focusing on the amount of risk capital per trade. This article proposes a more thorough methodology to analyze the risk associated with 70% probability iron condors versus 90% probability iron condors, discusses the pros and cons of each approach, and attempts to dispel possible misinformation in the marketplace. When defining risk for credit spreads and iron condors options, most experienced cred
