Week36-Sept 8 Options Trades.
Does it matter which way it goes? UP or DOWN?
Based on this, the market was GREEN on Sept 8 @ 11 a.m. (EST). However, for the week, it still looks to be a RED WEEK (see below).
My trading needs to be done regardless of whether the markets are GREEN or RED. So, I can't base it on what I think the markets will do or which NEWS event will move the markets. I need to focus on a way where I can make money 70% of the time.
Here is what ETRADE transactions show for me (Sept 8).
I included the Sept 7 Tesla trade to see how I made 0.14 (or $13 x 2 Contract = $26) with one day of risk.
Let me show you the history of TESLA, so you understand what I did this week.
Summary:
Once you see that the trade is profitable, you might understand why I would lock in the profits and move on to the next trade. Today, I closed the OCT 20 Iron Condor and opened a DEC 29 Iron Condor.
You need to see the detailed history of the trade:
I use Iron Condors because I don't want to predict the direction of the markets. I want to make money if it is UP, DOWN or FLAT. By selling the Iron Condors, I can get the PREMIUM up front and wait for TIME to pass. I only LOSE when the market moves towards the SHORT LEGS of the position. The concept is called "Theta Decay," which is how I make money.
If you like Credit Spreads, Iron Condor is just a CALL credit spread AND a PUT credit applied together. You must still learn to manage RISK and SELL/CLOSE your position before losing money.
What options trades do you prefer?
Have a profitable day,
Solving-Chaos
