For only $49.95 a month, you will be able to stay ahead of the market and increase your profitability on a month-to-month basis. Subscribers will learn how to consistently maximize their profits and keep their losses small. We’re so confident of our service that we offer a FREE two-week trial and even publish our track record for you to see. Just click here to see how much you could have made last month.
How often do you trade?
We are very selective
in our trades each month. Our goal is for each trade to have a minimal
risk with a very high probability of profit. Due to our success in the
past, members have requested that we add positions and currently we are
averaging around five positions each month. No matter if you are
trading with $5,000 or $100,000 you can certainly trade our spreads
each month. Many members have started with small accounts and traded
fewer contracts as they build their accounts.
What is a credit spread?
This is
constructed by buying one stock option and selling another of the same
type (call or put) in the same expiration month but at different strike
prices. The option that we sell is more expensive than the option that
we buy, thus resulting in a net credit (deposit) to our trading
account. The advantage of this spread is that in order to profit, we
don’t need a directional move in the stock. Instead, we profit from
time decay. That’s the beauty of our system. We don’t need to rely on
picking directions and timing the market.
I've never traded options or credit spreads. Would I be able to follow your recommendations?
Most of our members started with little or no experience trading
options or credit spreads. Consequently, we provide very detailed and
precise strategies that our members have no problem entering and
exiting. However, we strongly recommend paper trading and educating
yourself on our strategies to the point where you feel comfortable
before ever actually making a live trade. Through our newsletters and
hands-on trading experience, most members have gained a comfort level
with placing Credit Spreads and a substantially larger trading account
to go along with it.
When are new trades posted?
A majority of our trades are put on from three to five weeks prior to
option expiration dates. Since we are constantly looking for highly
profitable trades, we do not have a set date for when we put on new
trades. Just keep in mind that whenever the market gives us an
opportunity, we act on it and so will you when you become a member of
Income Spread Trader.
How will I be notified of a new trade?
We first notify our members by email. The emails are sent out as soon
as we find an opportunity and enter the trade ourselves. Then we add
the recommendation to our site.
What kind of online brokerage account do I need?
It is important that your online brokerage has the capability for you
to enter credit spreads and iron condor spreads. This is very common
with most brokerages but you do want to make sure that your account
allows you these capabilities.
How large a brokerage account do I need?
We designed our site to be very flexible so that any investor/trader
with an account size from $5,000 to $100,000 could find value in
earning 10-15% each month. Even if you are someone with a smaller
account, you can still take advantage of our trades by reducing the
share size. Remember, it doesn't matter how large your account size is
at the beginning....it's the end that matters.
What is the average holding period for the positions?
It really depends on the trade and the market conditions. A majority of
the time the holding period would involve 30 to 45 days. But if the
market gives us a quick profit we might just pull some money off the
table. At the same time, if an unfortunate turn takes place and a trade
moves against us, we also would get out of the position and keep our
losses small.
How many times do you trade a month?
When we started the website in 2005, we would enter two or three
spreads per month. But as we grew larger and our member's accounts also
increased, we gradually added spreads to where we are currently
averaging five spreads per month. This amount will vary from
time-to-time based on current market conditions. Remember it's not the
number of trades that's important, it's the quality.
Do I need real-time stock and option quotes?
It’s always nice to have the bells and whistles but they’re not
required. That’s the beauty of our system, once you put on the
positions you don’t need to be constantly watching them like a
day-trader would. In general, most of our members check the positions
after the market closes to monitor the days’ activities but it really
comes down to your comfort level. We recommend checking with your
broker to see what the cost is and then weigh your options to see if
it’s worth the price to you.
How do we know when to exit a trade?
A majority of the time we will just let the options expire worthless on
the expiration date. In the case of a drastic market movement in our
favor or adversely, we would send out an email alert stating to exit
the trade. Our number one rule is to preserve your capital for another
day. Due to this, at times we might even exit a trade prematurely just
to take the risk off the table or put money in the bank. If you ever
feel uncomfortable in a position for any reason, it’s important for you
to exit a trade without waiting for an email from us. We have the same
goals: keep our losses small and our profits large.
Do you ever do index spreads?
Occasionally we may enter an index credit spread if the right set-up
occurs. These spreads generally require quite a bit more in your
brokerage account (based on the price of the index). This is why we
mostly trade stock options instead of index options.
Do you trade your own credit spreads?
We began this website after years of trading credit spreads in our own
accounts. Since we are full-time traders, we would be entering these
same trades regardless of this website. But after years of our own
success, we decided to try to help others obtain financial freedom on
their own while hopefully educating them along the way. There are a
number of other sites that kick out tons of recommendations every month
but never actually enter the trades themselves. That’s why we offer a
FREE two week trial and even post our track record for you to see the
difference in our site.
What are the disadvantages of your strategy?
Because we only place three to five trades a month and a majority of
them we leave untouched until expiration, our style is a little boring.
But that’s what we
like………steady……..boring…….income…….month-after-month. The other issue
most traders have is the concept itself. It’s not commonly taught to
the public and that’s why you don’t hear too many mainstreet investors
using it. It’s been used by professionals like us for years to generate
income but not by the retail investors/traders. Once your account grows
like ours, you won’t mind the boredom.
Are there only certain market conditions that your system works?
The beauty of credit spreads is that they work in a bullish, bearish,
and sideways markets. It’s amazing that sometimes even when we’re
wrong, we still can be profitable. That’s because we leave ourselves
some cushion in our trades. Keep in mind that past performance does not
guarantee future results, but how else would you evaluate any trading
system? Remember, the professionals are option sellers not buyers.
That’s why close to 80% of all options expire worthless. Our members
are the sellers looking for that high percentage trade and income
month-after-month.
Do I need to be at my computer during market hours?
A majority of our trades will be sent out during the market hours,
however many of our subscribers are only able to enter trades at night
or during off market hours. If you fall into this category, you would
just enter conditional orders with your broker at night. You might have
to lower your profit potential slightly but you should still be able to
enter our trades with ease and with a healthy profit. Be sure to check
with your broker on how to enter these types of trades.
How are memberships cancelled?
Memberships are cancelled with a 30-day notice in writing by email.
However infrequent this is, we do realize that outside personal issues
might require you to unsubscribe.