Review: Iron Condor - aiming for a 10% ROI every month
Condor Options states that "our goal is to generate 10% returns every month, consistently, using Iron Condors. If you're tired of whipsaws and drawdowns in your trading account, see what our options strategies can do to help you generate a solid monthly income." I'm not a stock-trading Guru so I had to speak to one of the guys behind the site for more information.
Here's the general idea:
"Most of the time, market indexes trade in a range. They move up a little, down a little, and often stay relatively flat. The sole purpose of the Iron Condor options strategy is to profit from this tendency markets have to bounce around: we figure out the likely range in which the major indexes will move within a given month, and sell some options at the top of that range and the bottom of that range."
"This brings in a credit, meaning that we basically get paid for predicting that markets will do what they statistically tend to do (i.e. bounce around). At the end of that month, those options we sold expire worthless, which means we keep the credit we received, and can turn around and sell more options for the next month. As with any investing, there's some risk involved. The risk in this case is that the markets will make some giant move up or down, past the range that we predicted. So we buy some options that are a bit further above and below our predicted range, and this dramatically lowers our risk."
Why this is good for normal people
To me this reads like hedging your bets, but as I said before I'm not an experienced stock trader - I'm more experienced in marketing and all things technological. This is good for normal people because it doesn't actually require any real experience or knowledge with the market.
Don't expect anything massive
The strategy was originally developed by professional floor traders as a way of bringing in income while reducing risk; but the income generated is never going to be amazing - with an average return per trade of around 23.9%.
How do you get into it?
Visit CondorOptions.com and contact them. They don't take on too many new members as I understand but there might still be slots. The major bonus is that you could be seeing 10% returns every month on an investment of $5,000 or less.
The developer in me:
CondorOptions have a really nice, professional website which is refreshing. All too often people want my opinion on startups that look like they fell out of 1999. This site has a web2.0 shine to it and a nice use of gradients. There is a mix of div markup and tables but I'm willing to brush over that because of the impression the site gives. It looks professional, meaning it should convert well for them.
Ultimately CondorOptions are aiming to generate a 10% return on your investment, which is an ROI they're trying to achieve without any real involvement from you. I'd love to give these guys a go if I had some spare money lying around... Great service, great idea and friendly to talk to - winner.
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