Monthly Cash Thru Options (MCTO) is a options trading advisory & investment services firm that offers two non-directional, credit spread & iron condor services, a long/short directional service, and the MCTO Letter. All services are offered with autotrading, where we do the trading for you in your standard brokerage account.
The Time Decay Service focuses on 35 to 90 day index credit spreads and iron condors where all trades are closed before expiration/settlement. The Time Decay Service and the IC1 Service both focus on index credit spreads and iron condors, but offer differing time frames that allows one to diversify their "options selling" investment exposure.
The Dow Jones Long/Short Service (DJLS) focuses on bullish and bearish directional moves on five long and five short positions on ten of the thirty stocks that reside in the Dow Jones Industrial Average. The long and short positions are implemented through buying in-the-money (ITM), long-dated call and put options.
The IC1 Service focuses on 30 days or less index credit spreads and iron condors where most trades are held through expiration and settlement.
The MCTO Letter is our robust, highly regarded stock market analysis newsletter that is delivered weekly via email each Monday. The analysis can help most traders, regardless of their preferred strategies, to more accurately navigate the US equities market and better time their entries and exits.
Overview of Credit Spreads & Iron Condors
Iron condors represent a
strategy of selling options, not buying. When selling options we are getting on the "other side of the trade". One advantage of selling options is that 80% of all option
contracts expire worthless - i.e. 80% of the option buyers lose the premium that they
paid to open (buy) a directional trade. Thus, for the options sellers, there is an 80% probability that they'll keep the premium that they collected when they sold the options. Better yet, the probabilities of being right is closer to 90% for the trades that we typically open.
Additional advantages of Iron Condors are the following: 1) They are relatively
simple to learn and visualize; 2) They require only a few hours per week; 3) They make
monthly income during upward trending, sideways or downward trending markets - as long as the market stays within a plus/minus 4% range over 30 trading days, typically; 4) They do NOT require you to sit in front of the computer watching your trades; 5) They do
NOT require you to become an options expert on myriad options strategies; 6)
They historically generate consistent, monthly income.
We open our credit spread and iron condor trades primarily on the S&P500 index (SPX), the NASDAQ 100 index (NDX), and the Russell 2000
Small-cap index (RUT).