Income Without the Dividend (Part II): Market Neutral, Iron Condor Strategy

As the U.S. economy continues to flash mixed signals, investors are becoming more skeptical of a near-term recovery. Every positive economic report seems to be followed by two or three negative reports. If this roller coaster ride continues (which we believe it will), income investors would be wise to consider implementing some conservative market neutral strategies to complement their dividend stock and fixed income portfolios. One of our favorite market neutral strategies is the Iron Condor option strategy. Similar to the cash-secured put selling strategy that we highlighted in Part I of this series, the Iron Condor strategy is a conservative option selling strategy that generates income in a market neutral environment. However, unlike the put selling strategy, an investor is not forced to purchase the underlying stock with an Iron Condor. What is an Iron Condor? Source: www.theoptionsguide.com The Iron Condor is a limited profit, limited risk, non-directional option... Read more