As Option traders, we are all on a quest for that magical formula to making consistent returns on our trades. Along the way we trade stories and tips with other traders and some information really sticks with you.
It's been said that non-directional option trading isn't as non-directional as it sounds. It actually means we make money if the underlying doesn't move in any direction. This pretty much means it's a directional trade, "sideways". Most people advertise that it's easy to make money with options since we can make money on any direction. This is true in some cases, but not all.
In 2009, if you traded the Iron Condors most courses and books taught, you probably didn't end up making hardly anything. That's because the Iron Condor is just as directional as other options trades because its direction is sideways. It can be just as difficult to predict a sideways movement as it is an up or down.
Over the years, I've received many calls from traders loosing massive chunks of their accounts from trading condors and credit spreads. Sadly, it's always the same complaint; "It was going so well for several months, then all the sudden I lost nearly my whole account in one day." I've heard this time and time again, and it's about time something was done about it!
I don't teach the traditional Condors and Credit Spreads. When you're a few days from expiration, and the RUT is right at your short strike, then you are trading the way most people trade this strategy. Soon you'll be giving your sob story to your best friend while asking for a loan, and trying to hide your failure from your spouse! Laugh now; because once it happens to you, you won't have anything left to laugh about. The big part of the problem with this style of trading is the life ruining stress.
In response to this problem San Jose Options Mentoring has reinvented Iron Condors and Credit Spreads. The less you have to adjust your condor, the better off you will be in most cases and we have a different technique which gives the underlying much more flexibility, lowering our stress level and keeping us out away from a disastrous scenario.
On top of improved safety, we've also developed techniques that lock in our profits on Condors. Traders often drop the trade once they've made a profit; we lock-in out profits and continue the trade.
To conclude, even if we have a condor move against us, we have developed a technique that earns us a free bonus trade! We may experience a rough month now and again, but now we get an outstanding, free trade out of it where while other traders will take the loss and struggle on.
At the end of the month, win or lose, we at San Jose Options have trading Iron Condors and other strategies down to an art. Trade on, fellow traders!
By Johnny M Junior
About the Author:
Learn about Maximum Safety, Maximum Reward Option Trading at www.sjoptions.com. Don't be the next to tell your spouse that you lost it all on one bad Option Trade !