The Iron Condor (IC) Service focuses on non-directional, income generating, option selling, two-week in duration, 85% to 90% probability index credit spreads and iron condors, using weekly options on the S&P500 Index (SPX) and the Russell 2000 index (RUT). The Iron Condor Service has a 13 year track record and returned 52% in 2017, which includes commissions and reserve cash.
This strategy historically generates monthly income during moderate upward trending, sideways or moderate downward trending markets.
Iron condors represent a strategy of selling options, not buying and when selling options we are getting on the “other side of the trade”. An advantage of selling options is that 80% of all option contracts expire worthless – i.e. 80% of the option buyers lose the premium that they paid to open (buy) a directional trade. Thus, for the options sellers, there is an 80% probability that we’ll keep the premium that we collected when we sold the options. Better yet, for the trades that we open, the probabilities are closer to 85% that our trades will expire with a profit.
The Iron Condor strategy is offered as both autotrade and self-managed, and is designed to be complimentary to the Directional Alpha, Contrarian, Sector Rotation and Small Cap Momentum strategies. All MCTO strategies can be traded in the same account, which allows one to diversify their investment exposure.