As predicted....BOING!!!

Well Traders, the $NDX is behaving very nicely in the sense that it is trading in the Ascending Channel just beautifully. This is not necessarily good news for me with my December Iron Condor, but it not a bad thing either...yet.

As you will see on the chart above, the $NDX bounced off the bottom channel support line and looks to be making its way back up again. This was interesting to me because the $NDX was actually DOWN for the day until about 2:30 PM, which is when the oil pits shut down. Then all of a sudden, like "out of sight, out of mind," the markets went to full rally mode completely ignoring the surge in oil prices. It was interesting to say the least.

I will be curious to see if there will be a "buyer's remorse" today and see if the markets fall, or if everyone is in the holiday spirit and the Bulls go shopping.

Finally, based on the current chart, playing some Calls or Bull Puts on the $NDX may be the way to go for January. As long as there is no "top," there is no way to really define a trading range, unless you move the chart out to January's Expiration date and use the top of the channel as your 'top." That is a chart for another day.

Happy Trading!

Following the Plan

Well Traders, I am back from a nice Thanksgiving vacation in Los Angeles with my family. Besides enjoying some time with my loved ones, the highlight of my trip was watching my Alma Mater, USC, beat the snot out of Notre Dame...again. If the Trojans get past pesky UCLA this Saturday, they will be playing their 5th consecutive BCS game, their third in a row in the BCS Championship game, and the fourth consecutive game which could decide the National Championship. Should that happen, I'll be an extremely happy camper.

Back to business.

Yesterday, the $NDX (and the other indexes) took a huge, and expected hit. As I mentioned last week, the $NDX was very overbought, and trading at the upper resistance part of its Ascending Channel. So, I anticipated a pullback, which occured. This was obviously extremely beneficial to my Iron Condor as it put my trade over $75 points away from my strike with about 3 weeks left in my trade. Today, we had a modest hike of $5+ points, which is fine. The $NDX has established a new resistance level at $1824, but right now, it looks to be bouncing off support at the lower Ascending Channel support, as well as the $1760 area known as "Helm's Deep." I anticipate maybe one more down day, and then another rise within the channel thereafter. The only question is how far a drop, and how high and how fast the rise? Hopefully, I'd like another drop to around $1750, and a very slow rise the next 3 weeks to make the play a success. We'll have to wait and see.

Happy Trading!

A Friend's $SPX Trade

Wayne B who is another Trader whom I collaborate with recently set up a December Iron Condor on the $SPX. He has entered a 1445/1440/1365/1360 spread for a credit of $1.10. That is a risk/reward ratio of about 28%, which is pretty good. Here is a picture of the $SPX graph as well as some technical drawings I made on it:Depending on how you trade, this may or may not work for you. Personally, I may have played it a little differently.

As you will see from my annotations, I have shown the two spreads on the graph shaded in gray. I have also noted the Expiration Date as well as the previous Friday (some folks get out a week before). According to the Ascending Channel I have drawn, I probably would have made my Bear Call spread further up based on the run-up estimated. As you can see, it looks like (and it is only an educated guess) the $SPX could get to $1460 by the Expiration Date. This would be the Short I would have entered, with my Long being $1465. Wayne chose to be more aggressive by playing a closer Bear Call spread.

Wayne's Bull Put spread on the bottom is close to what I would have placed. He chose a $1365/$1360 spread whereas based on support at $1360, I would have chose a $1360/$1355 spread. I am not saying what Wayne did was wrong...each trader plays these based on their own trading goals and risk tolerances. Wayne chose a much more aggressive (and higher paying) Iron Condor than I would. Let's see how he does and if his play works out for him! Good luck Wayne!!!

Happy Trading!

Ho Hum...

Well Traders, it was a Ho Hum kind of day. The $NDX was down in early trading only to end up for the day a little over 5 points. Tomorrow is a short day, the markets are closed for Thanksgiving, Friday is a half day (and who the hell is going to be trading that day anyway), then comes the weekend. So I will have some really good days to burn off some time value from this play. I'll be curious to see where it ends up on Monday.

Here's the chart:Nothing really earth-shaking, but the MACD is falling, indicating some downward pressure, and the STO is so overbought that there has to be a down day or two imminent very soon.

Ideally, I'd like to see the $NDX fall to the lower support line in the channel (and even break through indicating a top has been reached), which will give me some breathing room. We'll see what the future holds.

Happy Trading and Happy Thanksgiving!

New Resistance?

Well Traders, the $NDX has been kind of waffling around this new level for a few days. This could be just pre-holiday boredom, or perhaps a new resistance level has been created. The chart shows the new resistance line and the completely overbought nature of the $NDX, as well as the MACD showing signs of downward pressure. This will bode well for my trade as this is a short week due to the Thanksgiving Day holiday on Thursday and shortened markets on Wednesday and Friday. So, this is virtually a FREE week for my time value to be burned off. So, as long as the market doesn't go nuts the next few days, my trade should be looking fairly good beginning next week.

Ideally, I'd like to see a fall-off towards the bottom of the Ascending Channel for some extra protection, but let's see where this goes.

I'll probably have one more post tonight, then take the next few days off for the holidays.

Hope you Thanksgiving is a wonderful one!

Happy Trading!

Learning From Your Mistakes

My Father always told me, "you'll learn more from your mistakes than your successes." So here is a look at what went "wrong" with November's trade.

Today is Options Expiration day for the $NDX, and although I am already out of my November Iron Condor (for a profit), I think it is vital to review the play and see what I could have done better.

Here is today's chart:

As you can see from the analysis (click to enlarge it, sometimes twice, then use your "back" button to return to the Blog), the index is moving perfectly in the Ascending Channel. Now, I chose to use a strict numerical distance based on the index price on my start date (250 points, 125 up, 125 down) to place my trade. Quite frankly, I felt 125 points would be sufficient (it wasn't) for a successful play. Upon reflection, had I used the channel as a guide, I would have seen the $1,850/$1,875 Bear Call should be safe for the top based on the channel and the expiration date. I was counting on very strong resistance at $1,750 and $1,761 based on previous, unsuccessful attempts to break through. Unfortunately my resistance points did not hold, so that threw my trade a wrinkle.

For January's trade, I will be more diligent to pay attention to what the technical analysis is telling me, then see if the trade is worth it. If the market is still this "hot," it may be worthwhile to wait for it to consolidate into a trading range which is more easily defined, then place an Iron Condor trade. If I am looking at $350-$400 point spreads because the market is uptrending so strong, perhaps that is NOT the time to be in Iron Condors? Maybe I need to say, "If I can't make $3,500 safely with less than a $300 point spread (i.e. technically showing the spreads are "safe" based on support and resistance, channels, etc.), then perhaps I should be looking elsewhere to invest?"

Happy Trading!

Rollin', Rollin', Rollin'...

Well Traders, today started out beautifully with the $NDX dropping to below $1,760. I felt that the top I anticipated due to the STO was about to come true and a rollback was in motion.

Boy, was I wrong!

The markets took a huge, and I mean HUGE swing (up 100 points on the Dow in 20 minutes), and I was left to make a snap decision once the $NDX hit my first roll point of $1,785. I could have done one of several things: 1) take my loss and exit the trade, 2) close my Short and let my Long run, or 3) roll the Upper Leg and try to salvage the trade.

I didn't feel it was necessary to close the trade altogether because there was still plenty of time left, so that ruled out #1. #2 is very tricky. A run-up like this may lead to a sell-off due to profit taking, or fear of a 52 week high so I wasn't ready to try closing my short and letting my Long run. So that left #3. I rolled out from my 1825/1850 position to a 1850/1875 position. I did this using 16 contracts which will basically cut my profit from $3,800 to about $1,600. I certainly am not happy about this and quite frankly, perhaps with such a strong trending market, I'd be better off with Calls than an Iron Condor. I certainly could have made some serious cash over the last few days with $NDX Calls when the index shot 85 points in about 8 trading days!

I know the Iron Condor is better played in a neutral, or less volatile market, which this is not, but the whole purpose of this is to try an achieve a monthly return on my money in order to achieve $1,000,000. To do that, I should play every month, regardless of conditions. Maybe this is a foolish position to be in, but I believe you should be able to be successful every month by playing wide spreads. Perhaps my time frame is wrong? Perhaps I need to be playing on 4 week trades with more contracts and wide spreads instead of 6 week trades? I don't know yet, but I am willing to try soon to find out. Honestly, I thought 125 points was plenty far, especially considering I had some very tough resistance at $1,750. Well, we all know how that turned out.

Anyway, like I mentioned yesterday, there is no resistance for a long time here, so that is a concern of mine. This market is just crazy...housing sucks, economic data isn't great, debts are high, options dating scandals abound, and yet the market just zooms up. I guess it is par for course and I know I am not alone.

I need to regroup here and have a plan of action if this market stays en fuego!

Happy Trading!

Breakout!!

Well Traders, it finally happened. The Huns of the $NDX broke through "The Great Wall of $1,750" as well as "Helm's Deep" of $1,761. Now, there is no resistance in the foreseeable future and the $NDX should be able to run at will from here. That concerns me.

As of now, my December trade is only slightly negative. There is some major economic announcements this week that may make or break my position. Hopefully, it will help me, not hurt. We'll just have to wait and see.

Here is the chart with today's breakout:

I need to be particularly dilligent with my roll point. Since I am still over 4 weeks away from expiration, if the market shoots up I may close my Short position on my Bear Call and let the Long position run because right now, may be the start of a major move upward. So, if that is the case, might as well take advantage of it with my Long.

I am still a little bit away from my Upper Roll Point, but another big day will get me there fairly quickly. The only thing that may be in my favor is the STO, which is Overbought, and may signal a downturn is ahead.

Happy Trading!

The Assault Continues...

Well Traders, the Huns of the $NDX have been relentless. Today, the index moved up 10 points to close above $1,750 at $1,751. Fortunately for me, the weekend will give pause to the battle raging (and burn some time value too!) and allow the "Great Wall of $1750" and "Helm's Deep" of $1761 regroup and hopefully, repel any assault next week.

Here is the chart:

As you will see, the pink oval has highlighted the last four days of battle with my Strong Resistance point. While the barrier has been breached, for now it has not been overrun. That is good. I need for this level to maintain resistance for a few more weeks to allow the time value to burn off and the trade to become profitable.

You'll also notice how the last few days are closely riding the lower support line for the Ascending Channel. This may indicate that $1750 and even $1760 may fall. However, with STO high and beginning to fall, I may get lucky and have this run-up lose steam and fall away, which would be sweet!

So far things are okay. They could be better, and they certainly could be worse. Let's see what next week brings.

Enjoy your weekend!

Happy Trading!

Double Top or Reloading?

Well Traders...an interesting day to say the least. The $NDX laid siege to my "Great Wall of $1750" and breached easily in the early going. Then the market laid siege to "Helm's Deep" and went as high as $1760 before the Hun were repelled once again.

I LOVE the fact that my resistance points while breached intraday, have held their ground, just as I set up with my trade. As you will notice, the falloff was pretty good today. The index is still within its Ascending Channel, so while today was Bearish, the overall trend remains Bullish.

You will also note that the STO is Overbought and has begun heading down. That is even better for the Condor as more downward pressure will start increasing my profits. I did notice that even with the early morning upward pressure, the "loss" was not increasing that much meaning that the Bull Put was keeping pace and the increase amount wasn't enough to affect the overall trade due to the distance to the Bear Call.

I would LOVE for another down day before the weekend which will give me two "free" days in which to burn off time value.

This may also be a "Double Top" pattern formation. Here is the one-year chart on the $NDX:

If this is indeed a Double Top, then we are at the beginning of a pretty major index decline on the $NDX. Personally, I'd be happy as a clam if it just started trending between my two horizontal support and resistance levels. That would make trading this pretty sweet! On the downside, this could just be a reload in the channel preparing for another run up. We'll see.

Happy Trading!

Battle for Helm's Deep ($1,760)

Well Traders, there is a battle raging on the $NDX. Today, the "Great Wall of $1750" was breached intraday and that concerns me. I only have one more line of defense (around $1,761) to slow this advance before I will need to think about making some adjustments. It feels like the "Battle of Helm's Deep" from the Lord of the Rings epic. I am drawing my "line in the sand."

The day started great with the markets down and my Condor seemingly getting a reprieve. Then around 2 PM, when the Dem in Montana was declared the victor, and President Bush announced that Don Rumsfeld was resigning, a spark was lit and away we went!

Fortunately, the "Great Wall of $1750" held once again as the $NDX finished at $1,749.75. The index has breached this wall twice in two days, so I am not sure how much longer it will hold.

I have noticed a possible new trading range which I have highlighted in light orange. It may be nothing, but the index has seemed to rattle around in there. I'll keep this box until a breakout occurs.

I am still $35 away from my first roll point and at this pace, I may get there by the end of the week....ugh, NOT what I had hoped for! Hopefully, we'll get a couple of down days before the weekend which will allow me to burn some time value off. I am also still over $70 points away from my upper strike price ($1,825) with about 5 weeks to go, so with earnings season winding down, we'll see if we can keep the dogs at bay and pull out a winner for December.

Happy Trading!

The Great Wall of $1750

Well Traders...the Barbarians are at the gate! The $NDX has been en fuego the last two days, and today was somewhat precarious. The index moved up to $1750, and even broke through for a moment before falling back again. Why is this significant? Look at my original chart for my December trade:

You'll see that when I set up this trade, $1750 was identified as Strong Resistance. This was important because it identified an area that would help my trade remain "safe." If the index breaks this level, then I will need to be very cautious about more upward movement. Either a roll-out or closing a leg may be appropriate should my $1785 level be approachd soon. My hope is that, the index will fall off yet again, and head back down towards support. From there, I would love for the $NDX to become range-bound for a few months (between my Strong Support and Strong Resistance levels). That would give me an easy area to trade in.


Happy Trading!

Closed November's Condor...

Well, Traders...I learned a valuable lesson today. How to lock in your profits near the end of your Iron Condor trade. MassMutual Financial Group has a saying..."You can't predict, but you can prepare." Well, I wasn't as prepared as I wanted to be in November.

The trade was still very profitable, and I NEVER complain about profitable trades, but I did not set in some stop-losses to "lock-in" my gains in case the market made a major swing, which it did yesterday and today. So, note to self, if you are deeply profitable a) get out and be happy or b) set stop-losses to get out if things start to move against you.

Of course, I could have waited to see if the market pulled back tomorrow, but if it continues its bullish run, I could have turned a profitable trade into a negative trade and what sense would that have made? As of this moment, the $1750 strong resistance level is holding, we'll have to wait and see if it repels the Huns knocking at the gates or not...stay tuned!

Happy Trading!

Answers to some questions...

Hello Traders. Today and tomorrow should be VERY interesting with the markets and the elections. While the election should be finalized overnight, and the control of Congress be known in the morning, I will be curious to see if any early returns with GOP candidates winning moves the market up, and with any Dem candidates winning moving the markets down.

I have received emails from several of you who are following my blog (thank you!), so I thought I'd post this one and encourage all of you to post comments or questions on this blog. It may be a question that others want to ask.

Question 1: Are you using the NDX exclusively, or will you be doing Dec trades on the SPX and/or the OEX as well? How do you decide which one to trade in a particular month?

As of now, I only trade the $NDX. Why? I don't know...it seems like it is "richer" for less contracts. It is also more volatile and dangerous, but not as dangerous as it was in 2000 & 2001.

Question 2: How do you manage your portfolio to provide 6 weeks for the iron condor trade each month?

Well, no matter how long the trade is, the margin is the same. But I believe you are asking about the overlap. I have enough in my account to be in 2 1/2 trades at any one time. What I mean is that there is enough capital in there if I have to roll one trade (with a 50% increase in the contracts). There really should never be a time that you have to roll two trades simultaneously.

Question 3: Your graph on the blog shows the Dec expiration for the 21st. I thought it was on the 14th. Which is correct?

That is correct. Remember, unlike the $SPX and the $OEX, the $NDX expires on the third Thursday, not Friday. This was an unusual month in which it starts on a Friday, so the normal options expire a week before the $NDX.

Question 4: Do you use the Delta at all to determine when to roll or exit a trade? I remember that Michael used this greek.

I actually look at the profit/loss on the trade that is in trouble. I figured that at around 40 points greater than 15 days to expiration, the trade may still have a little profit or breaking even and I can roll out and still maintain the integrity of the trade. Michael Drew uses a delta of .25-.30 which is fine too. Everyone will find their own trading style that they feel most comfortable with.

Question 5: If you are building a contact list for the blog, will you be sending out an email each time you add something, or do I/we just need to check it every night?

No emails...there is enough spam out there. Just check back from time to time and see how I am doing.

Question 6: How did your iron condor trades do for October, with the unexpected steep climb in the indexes? I ended up taking the conservative route and rolling up both the spx and rut, and lost money in the process.

October was tough. Tough more for the fact it was a narrow trade for the $NDX (only 175 points), and I did roll out once. Which is why I do much larger spreads (over 250 points) from now on. I'd rather be safe and less stressed, then hanging on every moment. Besides, my "conservative" strategy should get me to $1,000,000 in under 5 years. Certainly nothing wrong with that!

Happy Trading!

Well THAT was interesting!

Well traders, nothing like a HUGE day right out of the gate to make things exciting. The $NDX soared over 28 points today on M&A excitement, plus I am sure the run up on all indexes was exacerbated by some very unhappy Bears who had to do some short-covering (Sorry TraderTim) !

So, what was the damage? Actually, not much. I am still over 50 points to my upper roll point (1785), and the $NDX will have to break through some tough resistance at $1750 to get there. I am hoping this was just some pre-election excitement and that it will hit resistance and gently fall off the next few days to around $1700. That would make me a happy camper. However, if more "irrational exuberance" is shown on the $NDX, I'll be ready to roll the trade.

My December Condor is still plenty safe. I am still over 95 points to my upper strike and over a whopping 160 points to my lower strike, so no worries. Yet.

Happy Trading!

$50k + Iron Condor + 6 Years, 6 Months = $1,000,000

So here is the layout on how starting with $50,000.00, you can achieve $1,000,000 in less than seven (7) years.

We start with 5 contracts worth $12,500 in margin, and in which each contract will yield $350/month. Therefore, starting with 5 contracts, we are yielding 5 x $350 = $1,750/month. Once we reach $75,000 in the account (we have added $25,000), then we increase from 5 contracts to 10, worth $25,000 in margin and yielding $3,500/month, etc., etc.

There are some key concepts here.

1. ALL monies MUST be rolled into the account to grow. That means no disbursements, even from taxes can be taken from here. Monies WILL be paid out in the future.
2. Start with 5 contracts.
3. Once $25,000.00 has been added to the account, increase the size of your play by 5 contracts. Keep doing this until you are playing 100 contracts.
4. Once $1,000,000 is reached, you can take monthly payments of $35,000, yes, that is NOT a mis-print. 100 contracts yields $35,000/month, PLUS, you still have your $1,000,000 principal.
5. Play strategically. Don't get greedy and place tighter spreads to get a big pop one month...if it goes bad, it will take you months to recover.
6. Play smart. If the trade begins to look like it is going to go sour, either roll out, or get out! Better to break even then take a big hit, and when you are playing many contracts, a big hit could be devastating.
7. Remember, you are trading at your own risk. This blog is just an account of what I am doing. Do what YOU feel like doing. My trades are not recommendations or endoresements.
8. Remember the BIG PICTURE. We are trying to get to $1,000,000 by being disciplined, patient and prepared. If we are successful, the $1,000,000 will be here before we know it.
9. Pay your taxes! If you have a tax "burden" on $35,000/month, I can think of worse problems to have!

Happy Trading!

Takeoff!

And awaaaaaaay we go!

Well Traders, I executed the first Iron Condor to Riches for December. Now the fun begins! I have included a graph of the $NDX with some of my notations on it so you can follow along. As always, click on an image (sometimes twice to make it clear) to enlarge it, then "back" on your browser to return to the blog.

As you will see, the $NDX is in a serious uptrending channel that looks like it will blow through my upper spread before the expiration date. However, because of the strong resistance level the index hit and fell away from (for the fourth time this year), I believe it may have trouble piercing that and continuing. There is always a chance it may break through, but this is part of the planning process. You will also see I have indicated my first roll points (1785 & 1615) as part of my exit strategy. If the index hits either of these points with greater than 15 days to expiration (i.e. before 12/6), I roll my trade.

You must ALWAYS have an exit strategy with any investment. "Plan your trade and trade your plan!" To not have this is a recipe for disaster!

So having this graph set up, all I need to do is watch what goes on and be prepared to move if the trade gets in trouble. Pretty simple really. Since the spreads are wide, it will take some serious market action to get to either point, but that does NOT mean I can get complacent. Always watch your trades, and have alerts set up to warn you in case you are out and about and something happens. To quote MassMutual Financial Group..."You can't predict, but you can prepare."

So here is a look at my Iron Condor Analysis Sheet I created on EXCEL. It has formulas set up to calculate everything I need, every time. Beats having to do it by hand every month...what a pain that would be. So as you see, all the info I need to execute this trade is on here. The strike prices, the credit amount, the risk/reward, my exit points by dates, my profit range. Pretty comprehensive if I do say so myself! Anyway, this sheet makes life pretty easy for me. once the trade is completed, I fill in the bottom (which you can't see) and grade the trade based on success/failure. I also include my starting graph (the one on the top), and the finishing graph (the one printed on the day I close the trade) to see how I did, and keep in a journal for future reference.

For those of you who like to "gamble" a little more, here is my risk/reward analysis for December. this shows the spread distances and what the potential credits for each spread are. You will see the tighter the spreads, the more lucrative the trades can be. It is actually a strange risk/reward sequence because the tighter spreads are far more rewarding in that they pay more than they can lose, but you'll need to be in the clamest of seas to achieve that treasure! I believe it is less stressful to slowly accumulate wealth, then risk disaster for a few more bucks.

One final observation. I am ammending one of my "rules" to state that each trade will be executed on the Thursday (not Friday) 6 weeks prior to expiration. I found a substantial time value drop from yesterday to today. I think that is because the $NDX is a Thursday option expiration, not Friday.

Hope you all have a great weekend, and check back from time to time to see how the trade is going.

Happy Trading!

All systems go!

It's GO time Traders! Before I execute my trade tomorrow, I briefly wanted to go over a couple of charts of the $NDX so you can see where my thought process lies before December's trade.

Remember, we want the price of the $NDX to fall in-between our spreads by the third Thursday in December, that gives us maximum profits. So, the key to playing the strategy correctly, is to be where the market won't be. That means being a little dilligent, a little creative, and a little Miss Cleo (who couldn't see her own arrest coming ironically enough).

Let's look at the 1-year chart courtesy of INVESTools:


You can see the full size image by clicking on it (sometimes twice), then hitting your "back" button to return to the blog.

As you see, the $NDX has been on a tear since July. This is NOT the ideal condition for an Iron Condor, but really my spreads are so far apart that I should be able to handle even a strong trending market like this. The dream scenario is like November through April, that sweet range-bound flat channel. A market like that could allow you to play tighter spreads for more money and that may be a strategy to consider in the future...but not now. All I am looking for is the same spread each month being conservative, all the while looking at the BIG picture down the road.

Let's look at a closer picture since the channel began back in August:

So this is the set-up for December's trades. We recognize a very strong uptrending channel, two strong support and resistance levels, and our expiration date line. So now, at about 2 PM on Friday, I'll enter my trade based on the current $NDX price, then set my strike prices accordingly. After that, I'll update this chart showing my profit range, as well as my "danger zones," i.e., the exit points of this play based on time.

By the way, tomorrow may be very interesting in the $NDX since it looks like the index may be breaking out of its channel (and falling away from that strong resistance level).

Happy Trading!

T-minus one day and counting...

Well, we are on the eve of the very first Iron Condor to Riches play and I must say, I am extremely excited at the journey ahead. I hope this blog will inspire you, as well as give you insight as to my methodology in trading this system.

This may not be a daily blog. The reason for that is because my spreads will be so wide, there may not be much action for days in-between. But fear not, I will provide as much info as is necessary, with much "filler" to bore you.

Keep in mind that, even though I trade for a living, I am not a "professional" trader in the sense I have no Series 7 license, hence I am not a stockbroker. Nonetheless, I am of the opinion that stockbrokers are salespeople. They tote the company line, tell their clients what stocks the company analysts are pushing, and get paid by churning out commissions. At this time, I do not charge for any advice or recommendations I am giving. I am doing this in the spirit of information and learning. Therefore, I will not, nor cannot be held responsible for any losses (or gains) made off what is written here. You are adults, and as adults you understand investing carries risk. You are responsible for your own due diligence so what I write here really isn't an endorsement of anything, just a journal of what I am doing, not what you should be doing. Clear?

Okay, enough of that mumbo jumbo, let's get to the heart of the matter.

Let me lay out the goals of what I am going to do...my "business plan" so to speak.

Goals

• Consistently generate profits from an Iron Condor strategy w/ 100% success


• To roll each month's profits into my account, growing the capital


• Using increasing capital to allow for larger sized trades in subsequent months


• To achieve $35,000 in monthly distribution by March, 2010.


• To achieve $1,000,000 in my account by March, 2011 at which time, I will begin taking money out of my account

Rules

• To plan every trade, and trade every plan


• Exit strategies will be established BEFORE any trade is entered


• Exit strategies will be adhered to without fail EVERY TIME


• All Iron Condors will be entered the Friday six weeks before the expiration day


• If 90% or more profit is achieved before 1 week to expiration, exit the trade


• Play conservatively and consistently every month


• Play to WIN

Tomorrow, I'll give you some charts and EXCEL sheets on the very first play so you can see my thought process and maybe trade your own along the way. I encourage you to leave your comments and suggestions...as it will be nice not having to "go it alone."

Happy Trading!