Iron Condor and Credit Spread Trading on the SPX

A recurring theme on our options trading discussion boards at TheOptionClub.com has been the topic of trading iron condor spreads and credit spreads on a major equity index such as the S&P 500. At various times over the past two years I have hosted a dedicated discussion board and have shared quarterly results of my personal trading. This year I plan to do something similar, here on Blogger.

At present, I maintain one open credit spread on the SPX cash index. The SPX tracks the S&P 500, which is commonly used as a bench mark for the health and vibrancy of the U.S. stock market. It is a weighted average, consisting of the 500 largest companies trading on U.S. exchanges. It's size, combined with the fact that many institutional traders utilize SPX options as market hedges, makes it an ideal choice for our particular style of trading.

I do not currently have specific parameters for this blog, but will allow it to develop on its own based upon feedback from readers. At a minimum, I hope this will be an exciting 12-month journey that brings both you and I new understandings and insights into how to minimize market risks in our portfolios, while achieving extraordinary profitability.

If you are not familiar with options trading, I encourage you to spend some time learning about these highly flexible financial tools. Their risk is over played, and with the proper education you can learn how to use them to actually limit risks in your accounts while also possibly enhancing profits from existing investments. There are a lot of companies that will offer to educate you, some are better than others.

To make your journey easier, I would like to offer you a free copy of the 2007 Stock Options Education Report. It will outline for you what you need to spend you time learning about and how to ferret out legitimate education providers from those others who will take your money but not satisfy your needs. Along with the guide, I will provide you with my stock options mini-course.

This should be fun! I'm looking forward to posting here over the next year and hope that you'll join me on a regular basis to share information, insights, and hard earned wisdom.

Christopher Smith
TheOptionClub.com