ETF Credit Spread | Option Spreads | Iron Condor Strategy | Monthly cash thru options
Option Trading
 
Time Decay Service
make money trading options

The Time Decay Autotrade service seeks to sell time premium by selling index credit spreads that are 35 to 90 days out from expiration, differing from the MCTO IC1 service that primarily sells credits spreads with 9 to 15 days until expiration. Additionally, we buy back all spreads 10 to 30 days before expiration, or during opportune times where we're able to book 40% or more of the credit as a profit. Thus, we avoid settlement and the associated risks that come with settlement. The dynamic that this service leverages is the accelerating time decay that options experience from 60 to 30 days out until expiration. Moreover, when selling spreads that are 35 to 90 days out in time, it allows us to place our strike prices farther out creating a larger zone in which the market can trade.

The Time Decay service opens credit spreads on the SPX (S&P 500) and the RUT (Russell 2000) indexes. In addition, trades will be placed on the NDX (NASDAQ 100) when liquidity and strike price availability permits.

A typical credit that the Time Decay Service collects is $1.00 to $3.00 per 10-point wide spread. For an iron condor we typically collect $2.00 to $6.00 of credit.

For risk management we roll spreads that hit predetermined levels of drawdown up or down and further out in time, with the objective of keeping the debits under $1.00.  We keep 30-50% of the portfolio in cash, using the remaining cash as needed when rolling or hedging certain exposures in the portfolio.

This service is autotraded through TD Ameritrade, eOption and TradingBlock, and it is not offered as a self-manage product at this time. The recommended minimum to trade the service is $10,000. We will primarily open 10-point wide spreads, but we'll periodically leverage 20 and 25 point wide spreads when appropriate. We will typically deploy 10%-25% of the capital per trade.

How to Set Up the Autotrade Rule

When setting up the autotrade rule within your TD Ameritrade, eOption or TradingBlock account, please select the “Specified Quantity" or "Specified number of Contracts” option.  We use this option because we sell spreads that generate larger credits between $1.00 and $3.00. When collecting large premiums there is risk that additional spreads could be added to the order, increasing our desired exposure. Therefore, to avoid this situation we leverage the “Specified Quantity" option.

To calculate the number of credit spreads that will be placed into your account each time MCTO sends in a trade alert, divide your desired total, at-risk capital by 10,000. As an example, in order to allocate a total of $50,000 to the Time Decay Service, one would designate quantity 5 ($50,000/10,000 = 5) and select the “Specified Quantity” option. Thus, each time MCTO sends in a trade alert the customer would get quantity 5 spreads. As a general rule, the desired total, at-risk capital amount needs to be divisible by 10,000, or more simply, it needs to be in $10,000 increments - $10,000, $20,000, $30,000, 40,000, etc….

For Return on Investment results please go here.
To sign up for this service please go here.

To talk to someone about this service please call 877-248-7455, or email us at support@monthlycashthruoptions.com

 

   

 Webinars

Next Topic: Fundamentals of Index Credit Spreads & Iron Condors

Wednesday, July 26, 2017

Learn More>>

 How We're Different

Learn how we compare to our competition and why our subscribers tell us that the detail, thoroughness and clarity of our advisories are unmatched.

Learn More>>

 90% Probability Trades

We primarily leverage 90% probability credit spreads versus 70% probability spreads that many other advisories use.  Find out why.

Learn More>>

 Top Reasons To Learn

Top reasons why you should learn index credit spreads and iron condors FIRST before spending time on any other strategy.

Learn More>>

 How We Use Market Timing

We spend a lot of time monitoring macro-level economic and investor sentiment indicators to reduce downside risk and to time our trades.

Learn More>>

 Referral Rewards Program

Refer a new customer and receive one month FREE.

Learn More>>

 
 
 

Back to the Top


  | Home | About Us | Webinars | Example AdvisoriesROI Chart | Learning Center |

| Getting Started | AutoTrade | Subscribe | Contact Us | FAQ | Blog | Members Only | Referral Rewards | Other |
| Sitemap | Option Trading | Alternative Investments | Credit Spread | Trade Options | Terms of Service | Content Glossary

Monthly Cash Thru Options LLC 2017