Should I self-manage or autotrade the iron condor strategy?

Eighty five percent of our clients have their accounts autotraded, where some have interest in learning the iron condor strategy, but they learn it over time at their own pace.  Most autotrade clients don’t have the interest or time to learn the strategy so they let us do the trading for them.

Fifteen percent of our clients are self-managed where they will need to ramp up faster because they are responsible for opening, closing and adjusting the trades that we recommend.  With this said, our advisories tell the self-managed clients exactly what to open, close and adjust so they don’t need to become an expert on the strategy overnight.  The self-managed client will need to know how to open and close options trades in their brokerage account, and know how to enter 4 legged adjustment orders.

For the iron condor strategy a self-managed option is still available.  However, this strategy is faster moving than it was in the past as we have moved to 2 week in duration trades since 2015, from 4 week in duration trades. It’s faster moving than in the past and we make many adjustments throughout the month as the market ebbs and flows.  If you have a day job and don’t have easy, immediate availability throughout the day to make trades when they are emailed out, then it’s not recommended to self-manage the iron condor strategy.

For the clients that do want to self-manage, many start out with little or no experience trading options, and many start here at Monthly Cash Thru Options (MCTO) because we make it easy for the beginner to learn credit spreads and iron condors.  We enjoy teaching, and we tell all and hide nothing when analyzing the markets and building our options trades.  There are about 10 major option trading strategies, and credit spreads and iron condors represent two major strategies that fall into the category of non-directional, option selling and income generating.  MCTO got its start in 2005 focusing on non-directional credit spreads and iron condors because they work day-in and day-out making consistent returns.  One recommended approach to learn options is to first learn credit spreads by following our advisories.  After about 6 to 9 months you’ll start getting the hang of it, and at the same time you’ll be making decent positive returns on your capital.  At this point, we would recommend to take an introductory options course to learn more about the other major trading strategies and to dig deeper into the fundamentals of options. In parallel, you’ll be making a good monthly income trading credit spreads and iron condors.  Because we are very experienced with iron condors and we have already worked out the kinks, you won’t have to “spin your wheels” for many months or even years and lose money as you learn this strategy.

The first thing we recommend is to go to the MCTO Learning Center on this web site and start studying the material.  Next, sign-up for a free 30 day trial.  After opening your brokerage account, start small with just one or two contracts  (one spread or iron condor requires $1000 in maintenance; two spreads or iron condors require $2000 in maintenance….etc).  And then keep following our trades and education until you begin to feel comfortable with this strategy.  Over time as you become more and more knowledgeable and confident in writing index credit spreads, slowly increase your account size and this will gradually increase your monthly income.  As a result, you will soon realize that you’ve discovered a new income stream that you’ve never had before.