Mentoring/Coaching Question 1

Q: I realize you are not available as a personal mentor, but in terms of services that you do offer, what can I expect to pay to get well set up and get the maximum amount of information and support (by way of ordinary services you offer, nothing special)?

A: I can do private consulting but even I think it’s expensive!

The best thing to do is take your time, absorb as much information as you can and start trading very small - when you think you’re ready.

If you have a question I don’t mind answering it by email but I have lots of emails to answer each day so allow 3-5 days for me to get back to you.

That’s about the only trading support I can offer at this time.

However, if you’re a Daily Market Advantage subscriber you get priority and email responses to questions within 24 hours.

Just identify yourself as a subscriber to dailyma.com

Iron Condor Question 1

Q: When entering a Iron condor, aren’t you at risk of being put a stock or forced to buy a stock if the underlying breaks your strike. Can this be avoided by simply trading calendar spreads because you are in effect short & long the outer month at the same time. I’m just worried about being put a stock after a huge move and not having the money in the account to do so.

A: Once one side of your Iron Condor is past your break even I would either roll it up or down (adjust) or get out of the trade altogether.

Whether you get out or adjust is a matter of how you think market will move over the course of your trade.

You’re not in much danger of those options being exercised UNLESS:

1) they have less than .25 cents of extrinsic value (EV) left in them and
2) the company pays a dividend and the ex-div date is coming soon

Generally if the option is ‘out-of’ or ‘at-the-money’ it will NOT be exercised because there’s too much time value left in the option.

If it goes deep ‘in-the-money’ and has less then .25 cents of EV it could be exercised at any time.