Earlier, I had a motivating talk with an option’s investor who is still looking for for the key strategy to earning constant returns with option investing. He understood several things which were so well-known to me also.

The thing in particular that really stood out to me was when he alleged “Non-directional option investing doesn’t mean we will produce a return on investment in every direction. It really means that we produce a return if the asset doesn’t move in any direction. Another way to look at it, it’s really a directional strategy, sideways.” This is very true, and most schools say that it’s easy to manufacture returns with options simply because we can produce money for every direction the market goes. This is true in some points of view and false in others.

Those of you trading Iron Condors know what I am talking about; especially if you are trading the Condors that most courses and books teach. If you are trading this strategy in 2009, you probably aren’t making anything. The reason being that the Iron Condor is just as directional as most option trades only that its direction is sideways. For some, it’s just as hard to predict a sideways move as it is up or down.

So many option traders have called me recently to tell me the same thing. “I was doing great with Condors and Credit spreads for a few months, but then last month I lost nearly my whole trading account.” This is so common amongst option traders in today’s market.

This is precisely why I don’t preach the normal style of Iron Condors. If you are a couple days from expiration, and the RUT is right up against the sold contract, subsequently you are investing in the same manner as the average investor does. I’m speaking of the one who has very little investor education, and because of this, shortly you’ll be telling your buddies a similar story. However, it’s a very different story that you’ll be telling your wife! You smile today at this, but you won’t be showing your pearly whites during a time when it happens in your own trading. Another serious problem with this aggressive style of investing is that the anxiety level can be so elevated that it really destroys your well-being on a daily basis. Many of you reading this know what I am talking about.

Well, we’ve addressed this aggressive trading style at San Jose Options Mentoring. We’ve redesigned Condors and Credit Spreads. Our technique gives the underlying more room for the price fluctuation, giving us breathing room in our trading as well as in our lives. We find the less adjustments we have to make, then the more we bring home at the end of the month.

Our safer method of trading speaks for itself, but we have also developed another method that is very exciting to share with you. For most option strategies we trade, we now have a way to lock-in the profits and stay in the trade to make more. This is a great technique to use as an investor.

Also, when we do have a trade go against us, well, we have ways to get a free trade from it. This is another important technique that we teach to our students. While many traders exit with a loss or never exit and sustain a huge loss, we exit and get a free bonus trade that can always lead to returns at a later date.

So there you have it! Whether it’s a winning trade or a loser, we have really developed some nice trading tactics that can improve your personal trading immensely.

Ready to lock in those profits? Improve your Option Trading now by visiting San Jose Options Mentoring online at www.sjoptions.com. Visit today and get a Free Video on Option Greeks, a $200 value absolutely free! Don’t reprint this exact article. Instead, reprint a free unique content version of this same article.

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