Investment Strategies

Performance is the sole factor on which all investment strategies should be judged. Furthermore, an investment strategy is successful only if it has the ability to consistently outperform the market over the long-term. Unfortunately, those particular types of strategies are few and far between. Our approach is to present our subscribers with several simple and disciplined approaches to investing which have resulted in consistent success over the long-term.

SPX Short Iron Condor

Several successful options-based newsletter services use the Short Iron Condor strategy as their "bread and butter" trading strategy. They disguise it by calling it other names or say it is a proprietary model/formula that they have created, when in fact the Short Iron Condor strategy is mentioned in most of the prominent options strategies texts.

We absolutely love the Short Iron Condor strategy (for several reasons I will mention below), and we hope after you read the information below you will find the Short Iron Condor a useful tool in your investment belt. We offer a unique way of utilizing this strategy and best of all, it is simple to use. You will be equipped with all the information you need in order to make the most informed decision possible. We have done all the research; all you have to do is place the trade.

The Short Iron Condor strategy is a neutral based strategy that can be employed to take advantage of trading range (directionless) markets. The Short Iron Condor spread is another name for the combination of a bull put spread (short put vertical) and bear call spread (short call vertical) on an index, in our case, SPX. In even simpler terms, the Short Iron Condor strategy consists of selling a higher strike put and buying the lower strike put (bull put spread) while simultaneously selling a call at a lower strike and buying a call at a higher strike (bear call spread).

• The strategy is a credit spread which means time decay is your friend. Most options traders lose value as the underlying index moves closer to expirations. This is not the case with the Short Iron Condor strategy, as the underlying SPX moves closer to expiration and remains in our chosen range, the strategy makes money.
• The strategy is a one-month trade (expiration to expiration) that does not require constant monitoring of the market.
• The strategy works in all market conditions (bull, bear, directionless). However, the best scenario would be a directionless market.
• Can make 3% to 14% a month.
• Uses the tracking stock for the Standard and Poor 500 stock index (SPX), the 500 largest and most stable companies as the underlying.
• The strategy enables you to determine your potential profit/loss and risk/reward before the trade is placed.
• If the underlying SPX closes within the chosen range at expiration, your pre-determined profit is made.
• Section 1256 tax advantage

* You must realize that the Iron Condor is a high probability trade and therefore the risk/reward ratio is not attractive. However, its superb win ratio is what makes it popular among almost every professional option trader. It is the bread and butter strategy for many option traders.

» Sign Up for our SPX Short Iron Condor

ETF Extremes Strategy

This strategy uses our proprietary models to take advantage of sentiment and technical extremes. We are proud to be one of the only options-based newsletters to offer recommendations based on sentiment and technical extremes in the market. This strategy requires patience coupled with a disciplined approach. The strategy will make approximately, on average 1 to 2 recommendations a month with holding periods of 1 to 10 days, however; there will be some months when no recommendations are made. The key to this strategy is patience. Waiting for the appropriate scenario to recommend trades with a high probability of success is what makes this strategy a success.

Individuals that look for frequency of trading within a given strategy are often disappointed with the end results. In most cases, the less you trade, the better you will do in the long run. And the long run is what matters. This is what makes our ETF Extremes strategy unique and successful.

In most cases, SPY will be the underlying of choice. However, there will be the occasion when options on other ETF's (DIA, IWM, QQQQ) will be utilized for this strategy.

This strategy acts a wonderful complement to the SPX Short Iron Condor.

» Sign Up for our ETF Extremes Strategy

» Click here to check out the performance of our two strategies! «