Discover Why So Many Option Traders LOVE Trading Iron Condors And Why YOU Will Too...

Read On And Learn How This Limited Risk Option Strategy Works, How You Can Use It To Earn Profits Each Month, And Why It Is Winning Over So Many Traders. 

Plus I Reveal 3 Crippling Mistakes Rookies Make When They First Learn The Iron Condor Strategy That Steal Their Profits And Leave Them Grinding Their Teeth In Frustration.

Welcome!  My name is Christopher Smith. 

I am the founder of TheOptionClub.com, the online trading community for those who want to learn how to effectively trade options and share the knowledge they've acquired.

In this special online report you will learn about an option strategy that, if used properly, can provide you with very consistent profits month after month. 

I will also share some information with you about my trading background, reveal three common mistakes made by others when they trade this fantastic strategy, and invite you to watch our series of videos detailing the "in and outs" of the iron condor option strategy.

Again, read through this report because in it I will:

• Introduce the Iron Condor options strategy;
• Tell you why you might want to listen to what I have to say about it;
• Reveal 3 common mistakes you're likely to make, but that I will help you avoid; and
• Invite you to view our FREE Iron Condor Video Seminar where you will learn even more...

My Option Trading Background And Experience

One of the questions likely occupying your mind should be "who is this guy, and what qualifies him to speak about stock options and iron condors..."

It's a fair question.

I have been a retail trader for about 20 years.  Several years ago I became determined to master stock options and incorporate them into both my investing and trading.

What I found was that there was a great deal of confusing, conflicting information out there.  I read books, surfed various web sites, attended seminars in hotel ball rooms, and scratched my head...

Eventually, I began finding answers and founded one of the best and most active stock option discussion boards on the Internet. 

I learned.  I honed my skills.  I have traded covered calls, naked puts, vertical spreads of all description, calendars, diagonals, in-the-money, out-of-the-money, and smack dab at the money, strangles, straddles, ratio spreads, exotic hybrids, and more...

Yes, I've tried all the flavors and have found some to be sweeter than others...

There is one strategy that accounts for more trading profits in my accounts than any other option strategy.  This strategy has become one of my favorite means of taking profits out of the market, regardless of what the market is doing.

That strategy is the iron condor...

Learn Stock Options Basics...For FREE

I am about to use some terms in this special report that may, or may not, be familiar to you.  If these terms are not familiar, I invite you to register for a free e-mail based stock options course. 

It will get you started by teaching you some basics that will better enable you to fully appreciate the value contained in this report.

Get The Free Stock Options Mini-Course

If you're ready right now, let's continue on...

How The Iron Condor Makes Money For You

The strategy works in rising or falling markets.  It also works beautifully during market consolidations.  It simply does not matter which direction the market is headed, because this option strategy does not rely upon market direction to earn profits...

Imagine simply not caring whether the stock market is rising or falling, and not because you hid all of your cash under your mattress.  Imagine not caring because you've got your account positioned to benefit from something other than the rise and fall of stock prices.

Iron Condors Do NOT Make Money From Market
Moves, But From the Consistent And Inevitable
Passage Of Time...

The key to the strategy is the sale of option premium.  You see, options are a "wasting asset."  They have a shelf-life, and when that shelf-life is over the option expires.

All options expire..  So, the way an iron condor trader earns money from stock options is by selling them, collecting a cash premium with each sale, and then letting that wasting asset just waste away.

Again, you will...

Sell options for cash in a limited risk strategy, 

Watch those options fade in value, and 

Keep the cash. 

That's where your profits are earned...

How To Reduce Risk And Keep Your Money Safe
When Selling Options

Yeah, but selling stock options is risky.  Right?

Sure, and anyone who has studied trading knows that the true "holy grail" of trading is in the ability to manage and control risk.  If you can't control risk, you can't make money in the options market.

Here's a little trivia for you... 

The Chicago Board Options Exchange (CBOE) was the first U.S. exchange to trade listed options.  It was established in 1973.  Options existed before then, but 1973 was the first year they were listed and traded on a public exchange.

In 1975, two years later, the American Stock Exchange (AMEX) and the Philadelphia Stock Exchange (PHLX) also began listing and trading options. 

A year after that, 1976, the Pacific Coast Stock Exchange (PCX) also began trading equity options.  The Aussie's got into the act that same year, listing options on the Australian Exchange, which was the first exchange to trade options outside of the United States.

If options are so wildly risky, why did the CBOE come into existence and within three years the AMEX, PHLX, PCX and the Aussie exchange jump into the act, too?  Since then, many other exchanges, like the NASDAQ, have begun to list options and trading volumes have exploded!

Options exchanges were not created to increase risks for individual investors.  They were created to reduce risk for institutional investors.  That's right.  Options are intended to reduce risk.

Why the bad rap, then? 

As with most things, some people see a way to make "fast money" and get over leveraged in the process.  Options are a great way to leverage your investments, but when you're over leveraged the result can be a very spectacular catastrophe.

So, how do you control risk?

A Limited Risk Strategy

By definition, the iron condor is a limited risk option strategy. This means that you control precisely how much risk you take on with any given trade. 

Feeling a little nervous about that trade?  No problem.  Reduce the risk to where you are comfortable.  It's in your control. 

So, how is it that we control risk and hold onto our money if option selling is so risky?  To start with, we sell both call options and put options... 

Hold the phone!  Wouldn't selling both calls and puts just double our risk? 

The answer is, no...

Keep in mind that the stock market can move up, it can move down, or it can move in a sideways direction.  Sideways is ideal when you're selling options in an iron condor, so you're only at risk if the market makes a move in an upward or downward direction.

Because the market cannot move both up and down at the same time, you're guaranteed that the calls, or the puts, at least one of them, will expire worthless.  In other words, so long as you don't make a "rookie mistake" you can lose on the calls, or you can lose on the puts, but you can't lose on them both.

A second piece of the puzzle is that when we sell the calls and puts we are simultaneously buying options.  This technique is called an "option spread" and is an advanced technique professional traders use to cut-off or limit their risk of loss.

So, we sell call options higher than we think the market will go and simultaneously buy call options to hedge ourselves against a potential loss in case we're wrong.  We also sell put options lower than we think the market will sink, but also buy put options to hedge that risk, too. 

This way our risk of loss is strictly limited no matter what the market does...

The end result is that the market can move up, it can move down, and it can trade in a sideways fashion, and so long as the market does not move outside of our anticipated range we will see a profit in our account.

But what if it does move outside of our anticipated range? 

The worse case scenario is that you incur your maximum limited loss, which you controlled before the trade was opened.  But there are techniques that will allow you to reduce even that limited risk of loss.

Beating The Markets, Traditional Mutual Fund Investments, And Your Stock-Picking Friends...

Imagine the next time you're at work, or at a cocktail party, or out playing a round of golf, and your friends are whining about rising inflation, low interest rates, the price of gasoline, a volatile stock market, and then they turn to you and ask how you're doing in the market...

So, what can you expect in the way of returns trading iron condors?

Well, this is where the customary disclaimer about past returns not being a predictor of future performance that we're all used to seeing comes into play. 

The truthful answer is that results will vary from one trader to the next.  It also depends upon how aggressive or conservative you are with your trades, which is something we cover in our free video series (see below).  There are many other variables... 

However, I can tell you that 5% to 10% monthly profits are common.

Did you just read 5% to 10% per month? 

If that sounds paltry compared to the claims you've heard from the stock option "gurus," keep in mind that a static return of 5% per month is equal to 60% per year.  A 10% static monthly return gives you a cool 120% after 12 months!

Can you see your friend's faces when you lay it on them that you're up 30% for the year, while they're down 10%, and the year's not even half over yet? 

Don't rub it in though.  Help them out just as I'm helping you, and send them here...

3 Rookie Mistakes And What
You'll Do To Avoid Them

	Rookie Mistake #1 - Trading Without A Plan

One of the most common mistakes that we see over and over again, is the failure to establish a trading plan before opening a trade.  The temptation to open a position arises out of an over eager desire to make money.  Yep, good 'ol greed.

We all want to make money.  However, it is important to understand that our first responsibility is to assess and manage risk.

A proper trading plan provides step-by-step guidance for every market eventuality.  It's focus is upon limiting losses when things don't work out the way we had expected.  We will not always be right about market events, so we must be prepared to deal with things when we're wrong.

When trading an iron condor, your trading plan must identify when and how a position will be opened and under what circumstances the position will be closed or adjusted.  The primary factors to consider are the price of the underlying security and the number of days until expiration.

For example, you might consider closing all positions when there are only a few days remaining prior to expiration or adjusting the trade if the market pulls within a few points of your short option contracts.

In our video series, we review the basics of a solid trade plan...

	Rookie Mistake #2 - Trading Too Much Size

When opening an iron condor, one of the decisions you will make is how many spreads to sell.  The temptation is to sell a large number of spreads to bring in a large cash credit or, perhaps, to feed our ego by trading a large position.

The danger in doing so is that we increase our maximum risk of loss with every spread that we sell.  When the market moves against the position, you may then have an overly large portion of your account at risk. 

Trading too much size is also called over leveraging.  The problem it presents for purposes of trading iron condors is that it limits your ability to recover from an eventual trading loss and hinders your ability to respond to changing conditions, which may have otherwise allowed you to maintain your profitability.

As part of your trading plan, you must establish how large each position will be and how you will manage your trading capital during the life of the trade.  For example, you might decide to allocate a fixed dollar amount to each trade during a 12 month period and that profits are set aside to offset possible future losses.

There are many ways to approach such a trading plan, but so long as you take the time to establish the plan and limit your position risk you'll be light years ahead of the average retail trader.

In our video series, we profile aggressive, conservative, and moderate techniques...

	Rookie Mistake #3 - Exploding Risk By Getting "Cute" With Adjustments

We all want to be right and we just can't stand when we are wrong.  Of course, the market is an unpredictable creature and we're not always going to be right.

As novice traders learn more about options, the begin learning about how experienced traders can adjust or "morph" option positions. 

Adjusting just seems so cool! 

Combine the "coolness" of adjustments with our natural desire to be "right," and an inability to admit when we're wrong, and you've got a very expensive lesson that needs to be learned.

The typical scenario involves a market move outside of expected parameters, which produces a paper loss.  Not wanting to take the loss, an inexperienced trader might initially try to hold on in hopes that the market will reverse course.  Needless to say, it doesn't...

So, if the market is not going to be cooperative, our novice trader figures they'll just have to work some magic by "adjusting" their position.  This is where things get really dangerous!

Remember, the iron condor is a limited risk strategy.  If you avoided Rookie Mistake #1 and Rookie Mistake #2, you know precisely how much risk you have and you've limited that risk by not trading too large a size.

Position adjustments seem magical, but in reality they are planned strategic responses to potential market changes.  Professional traders typically make adjustments to further limit their risk, capture profits, and, on occasion, to change the nature of their position to adapt to a new market bias.

In reality, adjustments are not magic and there is always a cost involved...

There are only two things you can do with an option: buy it or sell it.  Once you start buying and selling options trying to "adjust" your iron condor, you invariably change your risk profile in the market.  It is very easy to unwittingly increase your risk and expose yourself to a much bigger loss.

Any adjustments that you make should be planned in advance and should be part of your trading plan; e.g., if the market does this, then I'll adjust that...

By planning those adjustments before the trouble begins you are much less likely to "open Pandora's box" of unmitigated risk.

Our video series reveals a "flock of condors" adjustment technique...

Learn How To You Can Trade Iron Condors
Safely And Effectively

So, you now understand that the iron condor is a limited risk option strategy that can generate profits in rising, falling, and consolidating market conditions.  Your eyes are also opened to three of the more common "rookie mistakes" that you will avoid when you trade these positions.

There is still more to learn, but by now you should know whether you're ready to take the next step.

If you are, I am going to make it really easy for you...

Enter your first name and your e-mail address below.  You will receive one e-mail asking that you confirm your subscription.

Once you confirm your subscription, you will receive...

• Access to a download page where you may retrieve a free copy of a one hour telephone conversation between me and a senior trader from Condor Options.  We talk about trading iron condors and share insights about what works and what doesn't...
  
• Access to a free video series that covers the basics and explores advanced concepts including embedded positions, option greeks, and methods for calculating risk and estimations for the probability for success of each position.
  
• E-mail alerts whenever our materials are updated, to live presentations, and for special access to other training materials or services.

If you want to learn how iron condors can be used within your portfolio, you'll never find a better opportunity to do so.