Short Iron Condors for $$ Range Bound Markets
Stocks trend up, down, or consolidate in trading ranges. We have stock and option strategies for each trend, as well as the transitional phases.
At Master Trader, we trade stocks, futures, and options using our objective approach, and which applies to all time frames.
The Advisory Swing and Options Letter focuses on long or short stocks and options using Master Trader Strategies (MTS).
Call or put options are also used for when the options are liquid.
We sell options and spreads as Income trades where we profit through time decay and volatility contraction.
As chart-based traders, we typically have more of a bullish or bearish bias on the underlying so we primarily start with shorting options/spreads accordingly.
Sometimes, however, stocks are in wide/whippy trading ranges where we don’t have a dominant bias (other than short-term trading in between).
This Video will show you how to sell both bull and bear Credit Spreads around sideways/choppy patterns without having to pick market direction – and profit from daily time decay and volatility contraction.
Click below to see a VIDEO Review of the Setup, Strategy, and Management of a Short Iron Condor on a rangebound pattern:
The premium received in each trade (one options contract represents 100 shares of the underlying) is pure profit if the stock expires worthless between the two short strikes at expiration – a good bet using MTS Gap Analysis.
The rangebound pattern using MTS was a high-probability Setup for short Iron Condors. The analysis is explained in nightly letter videos for subscribers.
What Puts the Options Trading Odds in Our Favor?
We sell options/spreads around compelling patterns –- particularly on earnings or stocks in the news when volatility remains high – and literally “get paid” to determine where a stock will not go in a short time.
Once in a trade, we are in trade management mode, which is particularly important when selling options.
Management updates are sent intra-day by text message to subscribers.
As you saw in the Video, five days after entry, you would have an unrealized Gain of $670 (on a 10-lot), which represents a 43% ROC ($/.67/$1.55) – and the stock went virtually nowhere on the week!
All open and closed trades are documented in the subscriber member area. Intra-day, updates are texted to subscribers.
Get trades like these sent right to you and profit in the Markets!