Trading Iron Condors – Riding The Iron Condor Spread Trade To Bring In Option Cashflow

May 12, 2012 by Ted Nino  
Filed under Investment

A number of different techniques and strategies are available to option investors to help assist them in achieving consistent and reliable monthly income from the option market.

For example there is the butterfly spread, the iron condor , the diagonal (an/or the double diagonal), and the calendar spread, the double calendar spread – and, the vertical spread, which is sometimes also referred to as the credit spread.

The vertical spread (or credit spread) is a foundational trade that can be found in many other option income strategies. The iron condor spread is in actuality just two vertical spreads placed on either side of where the market is trading.

Also take a look at the butterfly. This strategy is comprised of verticals as well. One in the upper half of the position and one in the lower half. Also the iron butterfly is made up of two credit – or vertical spreads. A put vertical and a call vertical – both sold at a credit.

The vertical spread trade can be built from either call options or also put options.

Following is an illustration of a bear call vertical spread on the imaginary stock XYZ…

Sell 5 RIMM 50 Call Purchase 5 RIMM 50 Call

The vertical spread in the example above is a bearish position. Our hypothetical trader who placed this trade believed that RIMM would be moving lower – or staying in it’s general vicinity on the chart.

Some might think that because we are using calls this should be a bullish position, however this is not the case since we are selling the option that is closer to money, hoping to capture the time premium in the event that the stock moves down.

As long as the outlook on this trade is correct and RIMM stays where it is at or heads downwards, this trade will ‘win’ and the initial credit received when the trade was first placed will become the profit. Also keep in mind that this strategy can be used with both call options and put options at the same to build what is called an iron condor trade.

Want to find out more about how to trade the iron condor for monthly income, then visit Ted Nino’s site on how to trade this strategy as well as the iron condor for monthly cashflow.

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Riding The Iron Calendar Spread – Firing The Calendar Spread To Bring In Option Gains

May 11, 2012 by Ted Nino  
Filed under Investment

The Calendar Spread is an option cash-flow technique that is loved by both pro option traders as well as the retail crowd to create a consistent monthly income.

The calendar spread is an option strategy that makes it’s money from the fact that options are an evaporation asset that loses it’s value over a period of time. decaying value. This is how the trade makes money. As expiration day approaches, the premium that was sold in the near month option loses it’s value – allowing the option trader to buy it back much cheaper than it was sold for.

To construct a calendar spread trade, we need to sell a closest month option while buying a later month option at the identical strike price. During the trade, the time premium in the closer month option (the one that was sold) loses it’s value at a much brisker rate than the option that was bought. This difference is how the profit is generated.

Following is a made up example of a calendar spread place on SPY: Buy 1 Aug 105 call. Sell 1 Sept 105 call.

While in this hypothetical example, the calendar position was made up of strikes on months that were right next to each other (April and May) – they don’t have to be built this way. You can use any combination of different months.

To prove this point, instead of using the December options in the trade example above, January could have been used. Or even February.

Ideally the the calendar technique is used with stocks or options that are trading in a range without a lot of movement. However, they can also be profitably traded in trending markets as long as the strikes who were bought and sold are near where the underlying ends up trading at expiration.

Since some option traders feel that the calendar spread is one of the most easiest option trades to manage, they like trading them better than some other option trades, like the iron condor, credit spread, and butterfly. Regardless, it really comes down to personal preference and in the end, all option traders would agree that this strategy is a wonderful technique to have in their ‘trade toolbox’.

To be taught more about the iron condor methodology, visit Ted Nino’s site on how to accurately place, exit, handle and adjust the calendar spread for ongoing winnings.

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The Iron Condor Strategy – Firing The Option Iron Condor To Reap Option Returns

May 10, 2012 by Ted Nino  
Filed under Investment

The iron condor has two faces (and I thank the good lord above that neither one of these faces belongs to Babs – but then again, perhaps it’s even worse)

Usually when the iron condor and the new option trader meet, the iron condor comes across as this amazing beautiful trade – a holy grail type of method that almost guarantees success with every single trade. A spread that only takes a few minutes every month to put on and manage – and one that spits out consistent cash like a broken Las Vegas slot machine.

Of course, new option traders go gaga over this strategy – and who could blame them. It seems to be a trade that’s almost too good to be real.

And sadly, sooner or later (mostly sooner) they discover that it IS too good to be true.

But it doesn’t have to be that way.

See, the iron condor IS a magnificent trade – and it DOES take very little time to manage – and it CAN kick off outstanding returns.

BUT – and a big but here – what the gaga eyed option trader who is so head over heels in love with this trade doesn’t yet realize – is that this strategy can get a nasty streak every now and then that if not properly handled can completely annihilate all those amazing returns our unsuspecting trader manage to rack up. And then some…

It all boils down to the risk to reward ratio of these trades. They have a high probability of winning many small trades – but just ONE loss can completely DESTROY a trading account. And if the one trading these birds don’t realize and fully understand this – and more importantly how to properly manage these trades and how to make effective iron condor adjustments – before long they will get creamed and blasted out of the market possibly with a huge, unrecoverable loss.

But again – it doesn’t have to go down this way. The iron condor can be tamed – and trained – to produce consistent and reliable monthly income – even through the occasional one or two tantrums and fits it might throw around every year. The key is to learn how to correctly manage these trades from the get go – from the day they get put on – AND – how to utilize the various iron condor adjustments that are available to keep these trades profitable and from getting out of hand in whatever market condition. Learning iron condor adjustments is the KEY.

To find out more about the iron condor technique, visit this training website for scores of free training videos, examples, and tutorials on how to properly start off, exit, negotiate and adjust the iron condor strategy to yield a steady monthly profits.

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Iron Condor – Here Comes The Pain

May 6, 2012 by Ted Nino  
Filed under Investment

In order to properly trade the iron condor, you need to have a game plan in place first regarding adjustments. Before you even think about what strikes you will use you should have this management plan already in place. If you don’t you could get utterly destroyed by a big move in the market or the underlying and you wouldn’t have a clue what to do. Remember, the way that the iron condor is set up, with it’s skewed risk to reward ratio, it could take a few of these – or maybe even just one – to utterly destroy your trading account.

Another way of looking at the iron condor is to view it as a sold strangle with purchased wings on the outer edges for protection. The strangle trade is an option trade where the one who is putting the trade either buys or sells an out of the money put and call on either side where the stock being used is trading at. Strangles’ premiums are less than those of straddles due to the fact that the contracts are out of the money. This is basically just a call option spread up above where the stock is trading at, and a put option spread position down below where the underlying is trading at. Your paired positions are the condor’s wings.

The reason it is so important to have a sound management plan in place before such a move is due to the risk to reward ratio that the iron condor strategy carries with it. By finding a way to put the probability factor of this option trading strategy in our favor we can use that to help us be much more successful with this trade. A big move either way – or even just a move in the underlying that is larger than you were expecting – can have disastrous results on your trade and your profits.

The Keys to Successful Iron Condor Strategy

- Know that there are different ways for adjusting iron condors. There isn’t a ‘particular’ way you you need to do so. 


- Protecting your profits and your account should always come first. 


- Never allow the inevitable small losses to morph into big losses. 


- Don’t get bored with taking small consistent wins.

Your key to success in trading this strategy is consistency in gaining profits. These profits must be protected. Adjusting iron condors must be done according to one or more pre-planned strategies whenever the possibility for a large loss looms.

I always used to make great monthly returns trading this strategy for a number of trading cycles in a row – but somehow always seemed to give it all up during the few volatile months that always seem to come along in a year. BUT – all that changed after I discovered this very simple to follow step-by-step method of adjusting iron condor positions. After discovering the methods taught at this iron condor website, I now know exactly what to do when a problem month comes along to keep from losing the rest of my iron condor profits I’ve accumulated throughout the year.

Ted ‘The Spread is an option selling zombie – particularly fiery with riding the iron condor . Visit his iron condor Trading Site to see more about his First-rate Smooth Plan to maneuver the weeklys for reliable profits.

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Answers To What Is Forex Exactly And Why

May 5, 2012 by Leo D. Endo  
Filed under Investment

What is Forex exactly? It is the foreign exchange market, which is a global financial market for trading currencies around the world.

The market’s main goal is to assist in international trade by allowing a business to convert its currency to another countries currency which is usually for tourism and commerce.

For example it allows a business from the United States to bring in goods from one country like France and to pay Euro although the business’s money is the United States dollar.

It also facilitates the carry trade in which investors borrow affordable currency and invest in a higher paying currency, which some claim will cause some countries to be less competitive.

A usual transaction is that a party purchases a quantity of one currency by paying a quantity of another currency. Some say it’s a global over the counter financial market.

Modern foreign exchange began forming during 1971 when countries eventually started switching to the floating exchange rates from the previous exchange rate system which was a fixed exchange rate of the Bretton Woods system. After this adaption when currencies were allowed to float freely against each other the value of individual currencies varied. Which has caused a need for foreign exchange services.

It is a very unique market, its got a huge trading volume which leads to high liquidity. It operates continuously 24 hours a day except on the weekends, it has low margins of relative profit compared with other markets of fixed income and because of its geographical dispersion. Its use of leverage that enhances profit margins compared to account size. And it has been referred to as the market closest to the ideal of perfect competition.

Until the beginning of the internet, currency trading was really limited to interbank activity on behalf of their clients. But with the rapid spread of the internet, a retail market aimed at individual traders has rose up and that provides an easy access to the foreign exchange markets, either through the banks themselves or through brokers.

So what is Forex? I think the dictionary’s definition explains it best. It’s commercial paper drawn on a person or a corporation in a foreign nation and the process of balancing accounts in a commercial transaction between business organizations of different nations. The system in which one currency is converted into another currency and enabling international transactions to take place without the physical transportation of gold.

The arrival of different forex trading schemes makes the business very complicated today. That is why you should be able to develop a currency trading technique that is simply effective.

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Different Methods For Finding Out Which Forex System Is Valid And Which Is Not Valid

May 1, 2012 by Leo D. Endo  
Filed under Finance

Those who are in the forex market since old times know that many applications have been developed over the years. All of these programs promoted themselves as good profit earners. There are traders that each talk about their own forex system which is proven to work.

Not all the applications are for sale, there are different forums and websites which offer some of them for free. Using a trading platform is anyway better than to trade manually. Beginning the trade without a powerful tool can be compared to going at war without weapons.

The best method for testing an application is named back-hard. This option is available to the traders which are familiar to programming. With the programming knowledge and a software tool, the old trades made by the program can be accessed. The evolution of the market over time and how the program adapted to it can be seen.

A common method is the one which involves using the demo version offered by many programs for free. In the demo the money are not real, but virtual. The advantage is that people can see the true behavior of the software before opening a live account with real money. Any company with reputation should offer the possibility of a demo account. Those which do not offer this option have to be avoided.

A good way to evaluate forex software is to investigate about the flexibility offered in trading. It is good to know if the trading can be made, for example, directly in the currency charts. The best trading platforms are the ones offering direct chart integration. Also the news must be found on the page where the charts are. This indicates that the company is serious.

Another way to research about valid software pieces which is good for all types of money making programs is the online research using a search engine. Older companies have already built their reputation on Google and the ones who want to scam people can also be found in the form of complaints. The key information is provided by the reviews of members.

Since a long time traders are searching for a good forex system and various methods have been developed to achieve this. The back-hard method is the most efficient, but it is accessible only to those who know programming. For the other category of traders, demo programs and Google searches are the other available ways, but there are more which have the same efficiency.

Do not be incompetent when it comes to trading updates, get your daily dose of forex news online. There may be irreconcilable differences between forex trading reviews that you read at times.

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Heres A Look At A Few Forex System Trading Software

April 24, 2012 by Leo D. Endo  
Filed under Finance

A good segment of the population believe it important to have some type of forex system software to do business on the currency market. Yes, the market is complex and some people aren’t able to manage the work that needs to be done on a day to day basis, or they don”t know what to do or finally that just what to get ahead of the curve.

Getting the software is the easy part just make sure you know the market complexities first. There are three markets that make up the forex trading system that helps to allow 24/7 trading which isn’t available with any other market on the globe. This fact actually is one of the reasons the market is complex and confusing at times.

What’s traded on the market is international currencies from around the world, and that means fluctuations in the values of these monies in relation to one another. A trader needs to be informed and use an assortment of tools to guarantee an understanding of how to make money trading currencies. Having said that it’s time to examine some different types of software available.

One type of software is the trading platform an all in one software that manages all your forex trading needs. It does that by giving you all the research data you need to make intelligent decisions. It eliminates some of the guessing and questions that might come up during the decision process. This software requires some knowledge of the market to better utilize it’s features.

Another type of system software available is called signal software which in the long run is helpful but still requires the trader to have day to day knowledge of the market. It works as a lookout for the trader to detect any signals that are important to prices of currencies which helps the investor in making decisions on trades.

It is truly amazing some times how many people are assuming that all trading software is for new investors not familiar with the exchange. Various applications are designed to help a person know what trends are developing which helps in coming to decisions to buy or sell, the need to understand the exchange is still important.

But rest assured that there is software specially designed to help people who don’t really know how the exchange works or are just new to trading currencies. The FAP turbo and forex megadroid would help the newcomer and they’re popular for that reason. The software is proactive and will also stop trades and sell off currency if the value starts dropping to a certain point.

What would a very effective forex trading tactic bring to your fx trading business instantly? Every type of forex trading strategy that is introduced must be scrutinized really well.

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Where To Go For A Free Forex Education

April 19, 2012 by Leo D. Endo  
Filed under ECommerce

It takes time and painstaking analysis to learn the currency market. Fortunately, some websites offer no-cost classes and a plethora of other learning tools. They serve beginning traders and advanced traders alike. These sites offer an online forex education free to every potential trader.

The best educational websites deliver a world of content at no cost. They offer sequential courses as well as blogs, forums, and online tools. Some even offer free videos and eBooks. With a subscription, some of these websites offer one-on-one training with a trading expert.

BabyPips: Perfect for Beginners

BabyPips strives to make learning about FX fun and approachable. They feature classes that start at the preschool level and finish at the college level. Registered users can follow their progress through the curriculum as they finish each module.

BabyPips features blogs by active traders. Examples include “Loonie Adventures of a Forex Noob” and “Piponomics”. They also offer discussion forums categorized by topic and by FX education level. In addition, they offer multiple online tools, including a currency converter, multiple calculators, and an economic calendar.

Forex4Noobs

Users of Forex4Noobs are training to achieve FX Ninja status. The classes proceed through five belts: white, yellow, green, brown, and black. The website has blogs and forums, like BabyPips, but also adds free webinars and video sessions. The site also boasts live trade visuals and free eBooks. They say that they can help investors to leave their day jobs and become full-time FX investors.

Forex Trading and Education: A Master’s Degree

FX Trading and Education is catered to investors ranging from intermediate to advanced. The founder, Vic Noble, traded futures and forex for over thirty years. His site offers several free classes, including “How to Trade Using Support and Resistance Levels” and “Top 20 Killer Trader Mistakes”.

Noble also offers a free video trading example every week. Old examples are archived for access at any time. In addition, he posts interviews with successful traders so that readers are always getting a fresh perspective from the real world. For a subscription, he offers Live Connect, which offers one-on-one training in weekly classes.

It is pointless to pay hundreds of dollars to learn about currency. Many no-cost programs offer an excellent array of materials. With materials for the beginner up to the seasoned investor, all of these sites offer a rigorous training regimen. They also offer contact with fellow traders via forums. Some even offer one-on-one tutoring. Overall, each site offers a top-notch forex education.

The uprising of forex techniques will always make things a little extra competitive to all. Whereas, you as a wise trader, must always look at the fundamental fx trading strategies.

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What You Really Need For Forex Trading

April 18, 2012 by Emmaline Berenguer  
Filed under Finance

Learning about Forex trading is easy on the internet. A Google search will turn up lots of sites with great information. Most of the sites guarantee that their system will make money for you. It may be profitable to trade on the forex market if you have the right tools.

Anyone can earn money with Forex if they make an effort to learn the ropes. There are several gurus out there who will share some of their experience with you. If you aren’t investing in Forex, you should think about trying it.

One website I stumbled across in my research caught my interest and showed me how to save lots of work in Forex. The website is Fapturbo. The site sells a Forex robot which trades on Forex for you.

I know you’ve heard the stories about how I became a millionaire by doing nothing. I know you don’t believe them. Neither do I. I’m not becoming a millionaire, but I am making money with forex products without having to do extra work.

Don’t believe me. That’s OK, I might not believe me either. You should give this site a visit though. The Forex robot is a good tool that saves time and brain power on Forex trading.

I’ve only been using the robot a few months, but I have been making a profit. I don’t know much about software or computers, but the explanations the site gave me helped a lot. One thing that helped to sell me was the sixty day money-back guarantee. If it would definitely work, I’d surely know in sixty days.

Few people like going websites have this ability to convince people to have their product but with all the proofs indicated there, it really is hard to ignore what they’re selling. After all, the product is so cheap that you wouldn’t really mind spending that much if it guarantees you thousands back.

I was convinced that the robot was worth the small investment. What the heck, if I didn’t make money, I could always get that back. Unlike some sites promising will make money on every trade, Fapturbo does explain how you may not make money on every trade. That was one thing that made me believe they were for real. They do say that you’ll at least make back your initial investment in 60 days and I have.

As it were search about Fap Turbo, you would not find a single case of fraud filed against the developers practically because nothing was ever filed against them. The website is double legit and honest at that. While most forex websites would claim that their product guarantees profit 100% of the time, Fap Turbo humbly claims that it could give anyone profit only 95.9% of the time.

I have a couple of break even trades and once I even lost some dollars, but in the main, the robot has been making me a profit. Nothing works 100% of the time.

If you wish to trade in the foreign exchange market, I recommend that you check out Fapturbo.com. You really have you win.

Find out what real users have to say about fab turbo and fab turbo review.

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Foreign Currency Exchange Not Just For Making Purchases But For Strengthening The Global Economy

April 12, 2012 by Leo D. Endo  
Filed under Finance

Foreign currency exchange is the vehicle to convert money between countries. Whenever you leave your home country borders, you will have to exchange to the money used by the country. A traveler will have to do a conversion, in order to participate in any transactions.

There are several ways to make an exchange, for example, the ATM machine, a traveler’s check, or cash. The key is to get the best rate possible out of your home currency rate, this will give you the ability to make more purchases. The rate will be influenced by factors, such as governmental fiscal policies, interest rates, and whether or not the government is stable. Banks and other financial institutions will typically hold the money until they can maximize on the rates.

The strength of a country’s money is a strong indicator of their position in the global economy. A country plagued with uprising and threats of war will probably experience, the decrease in the value of their money. However, the influence the particular country has on the international market, will effect, how much the value decreases.

A key function of the exchange is the promotion of currency compatibility across global markets. Investments and trades are facilitated by the market. The simple way that money increases and decreases, is the basic rule of, supply side and demand side economics.

The market, operates 24 hours a day, 365 days per year. Currency trading is always taking place somewhere in the world. The main trading centers are, London, Tokyo and New York, which operate during normal business hours, in the week. The market can be seen fluctuating at any time of the day or night.

There are a variety of currency exchanges. The most common types are, forward, future, spot, options and swap. A transaction that is made for three months in advance, at a specific rate is called a future. A less structured future, with a flexible date is called a forward. A transaction that has a delivery in two days, with a contract as opposed to cash is known as a spot.

Options in when the trader, decides they want an open end forward, the seller, can use the specific date to sell or not, based on the market. This normally will involve two traders, that agree to swap for a specified amount of time, and then they swap back. Swap seems to be the most common, but options trading brings the most money.

The semantic signals being conveyed by various forex trading news sources can be good for traders. You cannot under estimate the influence of a forex trading review to your decision making ability.

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