Before you know it, the horses are dying of thirst. You’re in the “horse latitudes…”
The horse latitudes are sub-tropical shipping lanes that experience generally calm winds. During the era of sail power, ships would slow and sometimes stop altogether in these areas.
The story is that when drinking water supplies ran low in these areas, sailors would push their dead and dying horses off the ship.
For the sailors, there wasn’t much they could do but wait. And investors might feel the same way about a sideways market.
That’s where we are today: the market has gone nowhere for six weeks.
What can you do?
Today – in a matter of minutes – we’re answering that question in a free, live training event called Earn $1,217 this April from my pro-level options course.
It might seem strange, but there’s a way to use options to collect income from the market even if it’s going nowhere. To be more clear: a flat market is an ideal time to trade what are known as Iron Condors.
This trade involves buying and selling different option contracts to book-end where you think the market is likely to go. For instance, you could sell an iron condor that would profit if the market stayed within 5% (up or down) of today’s prices.
You collect up front income when you make the trade, and if it stays within the 5% (plus or minus) range, you keep the full amount. If it goes higher or lower than your 5% threshold, your losses are capped.
When selling a typical put or call, you have no safety net for your losses. Selling naked calls can be especially dangerous because if the underlying security skyrockets, you could be forced to buy shares in the open market and then sell them for a giant loss.
But iron condors let you capture income from a sideways market and give you protection on the downside.
If you think the market is unlikely to go much higher or lower in the next month, I urge you to attend my free event. Click here to register.
What do I think? I think knowing how to trade iron condors is a valuable skill to have in your back pocket. We know the market doesn’t go straight up or down. It usually drifts sideways – meaning we can generate income from iron condors most of the time. In fact, statistically iron condors are a successful strategy about 80% of the time.
I’m getting ready to start my presentation. Whether the market continues to trade flat over the next month, or it rises or falls a little bit, I know that if you attend my free event, you’ll learn how to profit.