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MarketNeutralOptions provides detailed analysis with each trade recommendation. Not only you profit from the trade, you learn the trade!
MarketNeutralOptions Advisory Service provides our subscribers with market neutral options trades that make money consistently in an up or down market. We trade mainly index-tracking ETFs such as SPY, DIA and QQQQ. We use mainly Iron Condors or Double Diagonals for our trades. We make about 4 to 5 trade recommendations per month, depending on market conditions, there may be more or there may be less recommendations each month.
We try to achieve 30% to 40% returns on average per month. Our trade recommendations are clear and simple to follow, low risk and require low margin. They are suitable for both small and big accounts. We don’t practise writing naked options (involves high risk), neither do we buy straight calls or puts (time decay works against us). Our strategies are non-direcitional and non-speculative in nature. Our trades won’t give you 200% or 300% returns a month, but will give you consistent returns. Learn More>>>
Exactly, what is the difference between iron condors that one requires $100 margin versus one that requires $800 margin?
Do you leg in or do you enter both sides of the iron at one time?
Thank you
Hi renard,
An iron condor that requires a margin of $100 means your buying power will be reduced by $100 because that is the risk you are undertaking for selling that iron condor. That also means that the maximum you can lose is $100 for that iron condor.
An iron condor that requires $800 means the same thing.
We don’t normally leg into our iron condor. However, there may be times when we may do that. When we do leg in, we leg in a spread. We may sell the put side first and then decide to sell the call side later. But we sell them as a spread not individual naked options.
I hope this answers your question. Please drop me another note if you have more questions.
Gary
Hi Gary,
I just found your site through thinkorswim. Is there a way to set the autotrade so that it only uses a portion of the acount?
Also, why do you not sell the naked options when legging into an iron condor? Is it to minimize the chance of a sudden move against you before you can leg into the next position?
Thanks
Hi,
We sometimes leg into our iron condor selling the call spread first and then the put spread or vice versa. But I don’t encourage legging in naked. Selling an option naked not only expose yourself to very high risk, you’ll also need a lot of margin for a naked option. More so since we’re trading SPY and IWM most of the time.
Do let me know again if you have any more questions.
Thanks,
Gary
I’ve just been referred here and I’m interested in getting involved. My account is with Scottrade which has limited option trading available: Buying covered calls and puts, selling covered calls. Do your Condors, Double Diagonals, and other spreads fit Scottrade’s limitations?
Hi Richard,
I’m afraid if your broker only allows you to sell covered calls and buy calls and puts, then you may not be able to participate in most of our trades at MarketNeutralOptions. You’ll need to be able to at least sell vertical spreads in order to do an iron condor. Better yet, get a broker that calculate margin based on net total risk on 1 side of the iron condor. I can let you know a a few brokers that you can consider. Please let me know if you want to know.
Gary
Hi, Gary,
I am a new member on a trial account. Do you find that your subscribers who self-trade easily trade at the spreads you recommend? Or is it easier to have auto-trading to get those spreads?
I have Ameritrade and I can use Net Credit spreads.
Insofar as I know, some brokers offer faster and better fills than others. I’ve heard complaints that many subscribers can’t get the trades filled at the target price when the auto-trade participants successfully got theirs filled. So I guess there is a better chance of getting the target price via auto-trade and there is at least one good reason to believe so. Because auto-trade tends to put up the orders in bulk and then distribute accordingly to the subscribers, there is a better chance to get filled at a better price sooner since it is a large order. I’ve heard that sometimes, marketmakers may prefer to take on 100 iron condor trades on a single order than a 2 trade order. I’m not sure how true is this, I’m only sharing with you my thinking and my humble opinion.
hi gary,
i m from india can i still subscribe to ur service. m very eager to learn from u.reply ASAP eagerly waitin.
regards
Yes, sure you can sign up for our service. But please note that we only trade the American options markets.
Newbie question. When a position is in a loss as your last two are right now with both SPY and IWM being above the break even point, what is the recommendation? Wait it out? Close it out? Thanks
Wilton
Hi Wilton,
For the current trades we have on, we will wait for a few more days. This is because the risk/reward ratio for these trades are low. We’re risking about $1 for $1. Chances are high that the market is due for a pullback soon. If this is true, we may have a good chance to close up the trades. Hope this answers your questions. Please let me know again if you have any more questions.
Good trading,
Gary
Gary,
I have signed up for the Trial, and I am not getting the advisories via email. I checked the spam filters and youa re not getting caught. Do you not offer it, or am I just dorking something up?
Hi Austin,
Our last trade was initiated on 24 Aug 2010. We haven’t have any new trades since then. If you signed up after 24 Aug, you’d have missed the last trade. We may be initiating 1 or 2 more trades in the coming days but it really depends on what the market gives us.
Thanks and best regards,
Gary
Some spread advisories provide “adjustments” to a trade that is moving out of range. Does your service provide?