Options Boot Camp has been a roaring success! A grand total of 2,223 people showed up for the LIVE events . . . and hundreds more have tuned in to watch the video replays.
Training session #3 is filling up VERY QUICKLY. Click here to confirm your spot:
Inside Thursday’s strategy session, I revealed details on the TOP 5 Income Trading Strategies. Lots of folks asked me, “What is your #1 strategy”?
It has got to be the Iron Condor Strategy (click here for details).
In January, I launched a new iron condor portfolio.
So far, I’ve been able to reap an average of profit of 9.2% per trade, every 28 days on the iron condor portfolio. Plus, the return on capital is now over 140%. And I’m WINNING 94.1% of these trades.
Seriously, you need to discover this strategy right now.
So, what is an iron condor?
An iron condor strategy is a non-directional options strategy that profits when the option on the underlying stock or ETF expires within your range at expiration.
The basic premise of the strategy is easier to understand in the chart below. But the key part and the real advantage of this trade is:
You choose the price range of the trade. Increasing the range will decrease your potential profits, but will increase your likelihood, or probability of success.
Here is an example of a typical iron condor trade.
The blue lines define how far the Nasdaq 100 (QQQ) can move up/down before the position I am interested in pursuing is in jeopardy of taking a loss. You can see that my range is from $150 and $132.
The underlying QQQ is trading for $144.12 and I would like to establish an iron condor for November expiration. That’s a 4.1% cushion to the upside and 8.4% to the downside over 56 days . . . although my average days per trade since initiating the iron condor portfolio is 28 days.
Here is a theoretical trade based on the previous chart:
- Sell to open QQQ November 150 calls
- Buy to open QQQ November 153 calls
- Sell to open QQQ November 132 puts
- Buy to open QQQ November 129 puts for $0.70.
How did I select this trade? It’s all based on probabilities. Let me show you what I mean.
Call side of the iron condor:
Put side of the iron condor:
I want to make an iron condor trade with a probability of success above 80% which is why I sold the 150 calls and 132 puts.
Again, it’s all about the probabilities when selling options. The higher the probability of the trade, the less premium I can earn. So, I tend to side with the odds which is why I typically choose a higher probability of success with every trade I make.
The strategy will make 30.4% if it closes within the established range by November expiration. As I said before, I prefer to take trades off early and lock in profits when the price of my original premium is about 50% less than when I initiated the trade. For example, since we sold the iron condor $0.70, I would look to take off the trade when premium erodes to $0.20 to $0.35.
There is a good reason it is one of my favorite options strategies.
Using my strategies – including the iron condor – you can have a huge advantage over other investors.
Why? Because you can use strategies that generate profits regardless of market direction. When properly structured, these trades can even absorb fairly large directional moves and still generate impressive profits.
On Tuesday, I’m going to reveal a grand total of 10 LIVE trades. And this will include two iron condor trades.
Just click here to confirm your spot in my upcoming webinar. It’s going to be my BIGGEST live trading event of the year.