Here is an example of a meltdown: at the beginning of Apr this year, I didn't think SPX was going to break above 1470. I placed a credit spread -1470C/+1480C with 20 contracts. To my amazement, the loss now is more than $24,000! What is worse, the loss is too rapid to take action because I have a demanding profession. Fortunately, this is a paper trade. What I learned is that credit spreads and iron condors all have EVIL, adverse expectancy, risking too much margin and capital for very little gain when the same capital can be more wisely invested somewhere else or in some other strategies. RS
As for your conclusion about credit spreads and iron condors, I disagree. All positions have an adverse possibility. You should trade those that are in your comfort zone and within your ability to manage. You learned that you shouldn't trade anything that you can be around to watch.
I honestly don't know how I posted it twice. Probably doing it half asleep around midnight You posted it twice for maximum effect!? (JK, sorry!) [/QUOTE]