I Bit The Bullet Trading Iron Condors

I had a fascinating conversation today with an option trader who is still seeking that magic secret to making consistent returns with option trading. He said many things that made a lot of sense.

One thing that got my attention 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.” He was right, and it’s often advertised that it’s easy to make money with options because we can make money on any direction. However, this isn’t always the case.

Those of you trading the strategy that most courses and books teach know exactly what I’m talking about. The Iron Condor is just as directional as most option trades, only that its direction is sideways. So if you’re trading that strategy in 2009, you probably aren’t making anything. It’s just as hard for some to predict a sideways move as it is an up or down.

I’ve gotten several calls over the years from people that ended up losing large chunks of their accounts trading credit spreads and condors. It’s always the same story… “I was doing great for several months, and then all the sudden I lost nearly my whole account in one day.” I have heard it time and time again.

Don’t worry, I don’t teach traditional Condors and Credit Spreads. I don’t want to contribute to the pool of option traders on the market losing their savings to trading Traditional Condors at expiration. I think there are enough wives yelling at their hubbies for doing such stupid things. Laugh while you can, because you won’t be when it happens to you. Who wants to deal with all that stress that could ruin their life?

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.

So you know we have a safer way to trade Condors, but we’ve also developed great techniques to lock-in our profits on them. Normally option traders exit their trades when they make a profit, but we can lock-in our profits and 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 end, win or lose, we have developed an impressive way to trade Iron Condors along with 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.