The Slow and steady Road to Riches

Hello Fellow Traders:

So here is my first entry into what I expect to be an exciting journey into making $1,000,000 using an "Iron Condor" strategy. For those of you who don't know what this is, it is an advanced options strategy. I learned this process as an INVESTools PhD. student and for those of you considering trading for a living, I would highly recommend their program. Let me know if you are interested as I can arrange to have Jason Smith, my INVESTools contact, take you through a demo of their web-based software. Email me here: GSOTrojan@aol.com

My first play for my Iron Condor (December's contracts) will be this Friday, November 3. This will be just over 6 weeks from the December expiration date which is enough time to make the contracts worthwhile, but not too far out in to be unable to anticipate the market's move. The key to the Iron Condor is being able to anticipate an index's ($NDX, $OEX, $SPX) move within a 6 week time frame.

What you are looking for is time value to act in your favor, by burning off quickly. This is a concept which is normally against "normal" options trades as time value is usually your enemy. In an Iron Condor, as time value burns off, your play becomes more profitable until the last day (the expiration day) at which time your trade meets maximum profitability as long as the index price falls within your price targets. Yes, you can always exit early if you are happy with your profits and don't want to risk any sudden market moves when you get close to the expiration date.

I will share my trade on Friday with a graph layout of my chosen index, as well as my analysis sheet showing my strike prices and my exit strategy.

"Plan your trade and trade your plan."

Should make for a great ride...hope you'll come along!