|The OptionsLinebacker System
To make our monthly income, OptionsLinebacker.com uses credit spreads on equity options of the S&P500, known by the
ticker symbol SPX. When a bullish credit spread (Bull Put Spread) is used in conjunction with a bearish credit spread (Bear
Call Spread), the combination is known as an "Iron Condor".
One of the huge benefits of this type of trade is that if you have the right broker, you only need enough maintenance $ for one
side, effectively doubling your rate of return for your cash on hand!
A lot of advisory services will show you how to get into trades. OptionsLinebacker.com will show you not only how to get into a
trade, but also how to "defend" the trade, and most importantly how to exit the trade!
|OK, What's the Football Connection?
When you place a trade, you're on offense.
You have the ball, and EVERYTHING is in your control.
Just like a place kicker, everyone's just waiting for you to kick off to the other team. Guess who's on the other team?
Every other trader in the Market!
As you submit your trade and kick off the ball, you see it arc upwards, finally settling into the arms of the kick returner - the
Market has the ball.
Now You're On Defense!
If you're going to play defense, and it's your money, you need to play your trade like a smart, fast Linebacker. An
OptionsLinebacker! Defense wins championships, and defense wins trades. If you know anything at all about Football, then
our system and our analogies will make a lot of sense to you, it'll become very intuitive in a short time. Even if you don't know
football, we'll make trading simple, fun, and profitable!
|An 18 month Chart of the S&P500 Index
Note how this index obediently stays within a price channel most of the
time. This channeling behavior can be a challenge to trade this stock, or
any stock directionally. Yet it makes it a perfect trading vehicle for the Iron
Condor "delta neutral" Options Trading Strategy by
Now let's see how we would place the positions:
|Notice how there is a good resistance level at 1245, and a good support level at
1200. Ideally you would want to confirm that the Market has topped out and reversed
before placing your bearish credit spread well above 1245, and then similarly wait for
the Market to bottom before placing a credit spread well below 1200.
OptionsLinebacker.com's daily newsletter will show you how to enter these trades,
how to maintain them, and how and when to exit the trades!
Click on the Order Newsletter tab to get started today!
|OK, Why Iron Condors?
If you've spent any time in the Market trading your account, you've heard the expression "The Trend is Your Friend".
What if there is no trend?
Trying to trade a long position with the trend can be incredibly frustrating if the Market is choppy. You may get your position
to go in your favor for a day or two, but it might quickly reverse and stop you out for a loss. You need a way to make money
when the market is range-bound, which is 80% of the time!
Options Credit Spreads are great for their ability to provide the trader a profit if the Market goes in their direction, sideways,
and even against their direction.
Let's see how this would apply to the S&P500: