Financing

A Phone Call With An Iron Condor Trader

I had an interesting conversation with an option trader today who is still searching for the secret to making consistent returns with option trading. He said many things that I absolutely agreed with.

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.

If you’re trading Iron Condors, you know what I am talking about; especially if you are trading the Condors that most courses and books teach. If you are trading this strategy in 2009, you probably aren’t making anything. That’s because the Iron Condor is just as directional as most option trades only that its direction is sideways. It’s just as hard to predict a sideways move as it is up or down.

Over the years I have received several calls from people who ended up having large chunks taken out of their accounts because of trading credit spreads and condors. The story is always the same… “For several months everything was going great when suddenly I nearly lost my entire account in one day.” I have heard this over and over.

I don’t trade the popular Condors or Credit Spreads precisely because of this reason. Many people believe in trading this way until they are a few days away from expiration and their short strike is about to hit. If this happens, soon you may be trying to hide the truth from your wife or telling the same story to your best friend. As funny as you may think this is, you won’t even chuckle when this happens to you. This style of trading can also contribute to a high stress level which can ruin your life.

To combat the problem, San Jose Options Mentoring has redesigned Iron Condors and Credit Spreads. They taught me a different technique which gives the underlying much more wiggle room, lowering my stress level and keeping me out of dangerous situations. Remember, in most cases, you’re better off the less you have to adjust your condor.

By using their developed techniques, I was able to lock in my profits on Condors. I learned from them how to stay in the trade a little longer after I was able to lock-in my profits, which is unlike most options trader who after they have made a profit exit their trades.

In the end, if I ever have a Condor move against me, then I have developed a technique to keep me in the game by making adjustments and morphing into a new position! I may run into a bad month once in a while, but I’ll get an excellent, free trade from it where most traders bite the bullet and move on.

Win or lose, along with the other strategies which I have developed, I will be able to trade Iron Condors impressively.

Don’t be an ordinary Iron Condor Trader! Learn safer, innovative strategies with San Jose Options. Check us out online for your free Options Trading Video.

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