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Intriguing Conversation About Option Trading

Todays Date: November 19, 2018

I had an intriguing conversation today with an option trader who has been searching for the secret to making consistent returns in option trading for many years. He made many familiar points.

He really caught my attention when he mentioned that “non-directional option trading” doesn’t mean we can make money in any direction. That it if fact meant that we make money if the underlying doesn’t move in any direction. That it was technically still a directional trade, only sideways. It is put out there than it’s easy to make money with options because we can make money on any direction. This may be true in some situations, but not so much in others.

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.

In my years of trading, I’ve received many calls from my fellow traders losing huge chunks of their accounts trading credit spreads and condors. They all spun the same tales of dismay; of how things were going so well for several months, only to suddenly loose nearly their entire account in a single day. It’s a sad tale I have heard far too many times.

This is exactly why I don’t teach traditional Condors and Credit Spreads. If you are a few days from expiration, and the RUT is right at your short strike, then you are doing it the way most people trade this strategy, and soon you’ll be facing the shame of explaining yourself to the spouse! Go ahead, laugh, but it won’t seem so funny when it happens to you and your life is in tatters because of this mess of stress you made yourself.

In response to this problem, San Jose Options Mentoring has redesigned Iron Condors and Credit Spreads, developing different techniques that give the underlying much more wiggle room. This lowers stress levels and keeps us out of dangerous situations. The less adjusting you do to your condor, the better off you’ll be in most cases.

In addition to our safer ways to trade condors, we’ve also come up with ways to lock-in our profits from them. The average option trader will exit the trade once they’ve made a profit. San Jose Options can lock-in our profits and we stay in the trade.

We’ve developed a technique that gives us a free bonus trade if a Condor moves against us. So, even if we experience a bad month once in a while, we still get an excellent, free trade from it.

In the best of days and worst of days, we stand by the techniques we’ve developed in the Iron Condors and 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.

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