Our topic is Trading Index Iron Condors for Monthly Income with John Marsland.
One of the most important options strategies is the iron condor. It is one of the most widely used options trades today, so everyone who is interested in trading options needs to understand it.
It is an interesting strategy because it combines immediate income or credit with risk control.
For those not familiar with options strategies, an iron condor is the sale of both a put below the market and a call above the market, giving a nice cash credit to your account, while also protecting against extreme moves by buying another (cheaper) put and call pair further out. You look to keep the net premium.
We are pleased to have John Marsland present this talk. John will give a brief introduction to Iron Condors and go on to demonstrate how to use the ThinkBack tool to develop a Russell 2000 Index (Nasdaq) RUT Iron Condor strategy.
John will include a detailed demo of how to place Iron Condor Trades on the ThinkOrSwim platform, and back-test it on past data with the ThinkBack facility.
TD Ameritrade's ThinkOrSwim is the most popular broker among our members for option trading, so this talk can also serve as a good introduction to using that broker and platform. (As a side-note, this broker is one of the safest, being owned by a large Canadian bank).
Back testing and placing the Iron Condor trade is only the beginning. It is critical to control risk that you adjust the position periodically on an ongoing basis. This is where most of the art comes in, and John will explain in-depth when and how to adjust, and give detailed illustrations.
We have two hours total so there will be lots of time and opportunity for questions and interaction, including detailed follow-up comments from a couple of our other options trading experts in the group.
John Marsland is a member of our group who works and has worked in the RTP at Cisco, and formerly IBM, as a Marketing Manager, Executive Communications Manager, Business Development Manager, and Product Manager, having originally graduated from NCSU in Electrical Engineering.
For the past several years, he has been building his retirement nest egg with covered calls and other option spreads.
John is now one of the Coaches at MarketTamer.com, teaching several classes on options trading each month. He also provides trading and investing ideas and education through his own web site, GetWealthDirection.com.
The talk is free and open to all, preferably with RSVP, but we have the full combined room space, so you can come and bring or send friends even without RSVP if need be.
Afterwards, Dave W. will be organizing an informal get together at the nearby Village Draft House - all welcome and everyone on their own tab!