As we reach the four year anniversary of launching our Iron Condor newsletter to retail options traders all over the globe, we thought we'd take this opportunity to recognize the accomplishment and announce some very exciting changes to the service.
When we launched in early 2013, we focused exclusively on Russell 2000 (RUT) index options, selling back month iron condors and holding them until shortly before expiration. We introduced dynamic hedging of the monthly positions and were able to smooth out our equity curve, posting annualized gains of just over 16% (on a recommended $5k of trading capital).
Over the past several years we've seen an explosion in volume in weekly index options, better bid/ask spreads and more strike price choice than ever before in both the RUT and SPX index options. And in our never-ending search for a better risk-reward ratio for selling options premium, we are excited to announce some big changes to our Iron Condor newsletter service as we prepare for 2017.
Effective December 7, 2016, we will be expanding our service to include S&P 500 index (SPX) options and will be using weekly options exclusively. By shifting from monthly to weekly expirations and adding SPX options to the RUT positions, we are able to reduce our hold time, diversify our return streams and better manage risk, especially in periods with sharp reversals.
Additional details on our newsletter enhancements:
- Each week, we open a five point iron condor in both the SPX and RUT with a target credit of approximately $150 (strike selection permitting). With a credit of $150, the maximum risk on the position would be $350 (500 - 150).
- We hold the position 7-9 days until expiration and allow the positions to expire worthless or close early to protect gains when necessary.
- When the SPX or RUT moves against our weekly position, we buy a call or put vertical in the index to reduce our exposure. We do not make adjustments to the iron condor itself which simplifies the management of positions.
- By offering weekly trades on both the SPX and RUT, we can increase our trade frequency from 12 positions annually (our previous monthly newsletter) to nearly 90. This allows the options selling probabilities to work in our favor when compared to a traditional monthly system.
- All trade alerts will be posted in our premium section of the website and delivered to subscribers via email as we've always done. We will also send out monthly performance reviews.
- Our newsletter subscription price will not change - it is still $49/month. At least for now. And you can save even more - 10% off our premium Iron Condor service - by signing up for our email newsletter at the bottom of this page.
We have much more detail on our Iron Condor strategy and performance page. We are also offering a 15 day free trial to allow all of our new subscribers to experience two full weeks of trades - it's a great way to kick off your options trading in 2017!