I am one of many option traders, folks, in search of a magical way of making consistent returns from our trades. I was talking to a fellow trader today who said something profoundly familiar to me.
Something that stood out was when he said “Non-directional option trading doesn’t mean we can make money in any direction. It means that we make money if the underlying doesn’t move in any direction. In other words, it’s still a directional trade, sideways.” I couldn’t agree more, and it’s been advertised that it’s easy to make money with options because we can make money on any direction. In some respects this is true, but in others it’s not.
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!
This is exactly why I don’t teach traditional Condors and Credit Spreads. If you are a few days from expiration, and the RUT is right at your short strike, then you are doing it the way most people trade this strategy, and soon you’ll be facing the shame of explaining yourself to the spouse! Go ahead, laugh, but it won’t seem so funny when it happens to you and your life is in tatters because of this mess of stress you made yourself.
In response to this problem, San Jose Options Mentoring has redesigned Iron Condors and Credit Spreads, developing different techniques that give the underlying much more wiggle room. This lowers stress levels and keeps us out of dangerous situations. The less adjusting you do to your condor, the better off you’ll be in most cases.
In addition to our safer ways to trade condors, we’ve also come up with ways to lock-in our profits from them. The average option trader will exit the trade once they’ve made a profit. San Jose Options can lock-in our profits and we stay in the trade.
When you get right to it, if we ever have a Condor move against us, then we have developed a backup plan which gives us a free bonus trade! So, even though we may experience an undesirable month, we still get an excellent, free trade while most traders just take the fall and crawl away.
In the best of days and worst of days, we stand by the techniques we’ve developed in the Iron Condors and other Strategies.
Are you interested in preserving your savings while still maintaining a high probability of making money with Option Trading? Then visit the San Jose Options Mentoring Course for more information.
categories: iron condor,options,option trading,finance,investing,stock market,money
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