Update on Open Trades Expiring In January (18th)

With 22 days remaining to expiration the filled NDX and RUT Bull Put trades are very safe with distances of 307, 207 and 81 points from the closing index values last Friday. Click on any of the Trade Alert Dates (first column) to display the actual trade.

I have also posted 2 new trades this weekend. The NDX Bear Call completes our first Iron Condor for this expiration period. With both sides of the NDX IC trade filled the return is 5.3%. The SPX Bull Put trade is the first side of a SPX Iron Condor trade I want to complete later next week. My goal this month is to complete at least 2 Iron Condor trades.

The markets should trade normally in January unless events in Pakistan get worse. The Fed meeting is not until the end of the month and the quarterly and year end earnings reports will start publishing after the 18th. This should be a very good month for Iron Condor trading.

All December Trades Expired Worthless Friday the 21st!!!!!

All Bull Put and Bear Call Spread trades expired worthless on Friday December 21st. This is the 4th month in a row that all trades have expired. What's most impressive is that these trades expired during a very volatile period with the markets going up and down 100-300 points at a time. At times the market was Bullish going up every day and other times Bearish dropping every day. This key factor contributing to this positive track record is the selection of very safe credit spreads to trade. The short options for these spreads must have a 90% or more probability of expiring worthless at the time the trades are filled. The trade off is that the returns will average 3% per trade. This is why completing an Iron Condor trade is so important. We consistently earn 5% or more when both a Bull Put and Bear Call trade is filled on the same index.

This month we earned an additional credit ($65 per contract) by rolling up the NDX Bull Put 1725/1700 spread trade to the NDX 1950/1925 Bull Put spread trade. Some subscribers collected another net credit rolling this NDX 1950/1925 Bull Put spread trade to the January 2008 NDX 1825/1800 Bull Put spread trade. With the markets rising again I fully expect this January trade to expire worthless.

The total return this month was 9.9% ($330/$3,325). All credit premiums collected totaled $330 (135-40-70-65-15) and $3,325 (2,365+960) margin was required per contract. If you traded 10 contracts per spread your credits totaled $3,330, 20 contracts $6,600. This month we had one Iron Condor trade completed on the NDX Index. I plan on executing many more rolling trades in 2008 so that we can achieve 6% to 9% returns on some of the Iron Condor trades.

New trades expiring in January will be posted to the members page later this weekend.

Update on Open Trades Expiring In December (21st)

With just 6 days remaining to expiration the open NDX and RUT trades are very safe with distances of 347,122,253,228 and 113 points from the closing 12/14/07 values. Even with the market dropping our Bull Put trades are still very safe for the remaining days. Having distances of 100 points or more is a very comfortable position to be in during the last week of expiration.

This market continues to move up and down on good and bad news but this does not effect any of our trades because that are based on a neutral trading strategy. We do not care what direction the market moves in and we can handle swings of 100 points or more. I really like this stress free trading strategy. We only had to adjust trades a few times in 2007 and I expect only a few adjustments in 2008. Adjusting trades is not a big deal as long as you can break even and protect your cash flow.

I hope many subscribers had a chance to roll up the original NDX Bull Put trade last week. Those who did collected a very nice net credit and increased the return on the NDX Iron Condor to one of the highest all year. I plan on executing many more rolling trades in 2008 so that we can achieve 6% to 9% returns on some Iron Condor trades.

New trades expiring in January will be posted to the members page next weekend following expiration Friday.

Improvements to my Advisory Service !!!!!

This month I have improved my advisory service many ways:

1) Member’s Area: All the new trades and weekly updates are now posted to a members page that is accessible 24/7. Once logged into the members area subscribers can also download flash movies that illustrate how to select, order and close credit spread trades. New movies are being added weekly. I still create email alerts and blog post to notify subscribers when I have added a new post to this page.

2)I have started creating audio streams that I am adding to my web pages, member page and emails. I feel talking to subscribers is a better way to communicate. These audio streams will be 30 seconds to 5 minutes in length and cover my new trades, my weekly updates and common questions about my trading strategy.

3) Auto Trading will be available later this month. I am finalizing an auto trading arrangement with OptionsHouse later this month. They are charging the lowest trading fees of all the brokers and all my orders are getting filled quickly. The majority of new subscribers this month are setting up their trading accounts with this broker and I have many established subscribers who will be setting up auto trading accounts once this service is available.

4) I will be reaching the maximum number of active subscribers in early 2008 that I can support. I can only support a fixed number of subscribers in order to provide the high level of professional service everyone expects. My monthly subscription fee will also be increasing to $59.95 later this month. This increase is justified because of the additional services I am adding this month and will be adding in 2008.

Update on Open Trades Expiring In December (21st)

With just 14 days remaining to expiration the open NDX and RUT trades are very safe with distances of 405,195, 170 and 145 points from the closing values last Friday. Even though the market continues to rise I feel our Bear Call trades are safe for the remaining days.

We have an opportunity next week to roll up the NDX Bull Put trade to a new NDX Bull Put trade expiring in 14 days. The NDX index has reached a very high level and is projected to keep increasing after the Fed lowers interest rates next Tuesday. This new trade is posted on the members page. When we can roll one side of an Iron Condor trade we significantly increase the return because we now have collected 3 credits and incurred on small debit.

Later this month the monthly subscription fee is increasing to $59.95 to slow down my growth. I am will be reaching the maximum number of subscribers that I will support for this service in 2008. This new rate will only apply to new subscribers who subscribe with PayPal after the new rates takes effect.

Update on Open Trades Expiring In December (21st)

With 21 days remaining to expiration the NDX Bull Put and Bear Call trades are very safe with distances of 300+ and 200+ points from the NDX closing value (2089) last Friday. The RUT Bull Put trade is also very safe with a 100+ point distance.

Many subscribers have not been able to get the original NDX Bear Call trade filled. I will post on the members page an alternative NDX Bear Call spread trade later today. I want all subscribers to complete a NDX Iron Condor trade this month to realize a 5% + return.

I will continue to research RUT Bear Call trades next week in order to complete a 2nd Iron Condor trade this month.

The members area is live now. Your logon ID is your e-mail address and your initial password is the word “password”. At the request of many subscribers I will send an email each time I added a new trade, or update report, to the members page. I will also add a post on my blog for subscribers checking my blog each day with an RSS feed.