) has been trading in a 4 point range for what seems like
It hits $22 and quickly retreats to roughly $18… rinse and
Will it continue its sideways price action, or will the
commodity ETF move higher or lower over the next month?
Does it matter? And can we truly answer such a question with a
definitive answer anyway?
As an options trader and a self-directed investor I really
don't care. I only care about growing my portfolio through income
But let's get back to
As I stated before silver has traded in a fairly tight range
($18 - $22) after its short lived rally last August.
So, how can we take advantage of the stagnant price
Look no further than a range-bound trade/investment known as
an iron condor.
is a non-directional options strategy that profits when the
option on the underlying stock or ETF of your choice expires
within your chosen range at expiration.
The basic premise of the strategy is easy:
you choose the price range of the trade. Increasing the range
will decrease your potential profits, but will increase your
likelihood of success.
So, if SLV has been trading between $22 and $18 over the past
few months and we think it will stay around that area over the
next 36 days we can place an iron condor trade with those
parameters and make 11.1%.
This means that with SLV currently trading at $20.37, the
would have to breach the breakeven levels of $22.20 or $17.80
level by April 18
(33 days) before the trade begins to take a loss.
It would take an 8.9% move to the upside or a 12.6% move to
the downside over roughly a four-week period before the position
is in jeopardy of taking a loss.
Best of all, the probability of success on the
trade/investment is a staggering 85%. Yes, that means that there
is only a 15% chance that SLV will move outside the $22.20 -
$17.80 range over the next 36 days. I like those odds.
When the market is going nowhere fast, the Iron Condor
provides safe returns that you can capture month after month -
with very little risk.
My #1 Strategy for Earning 10% a Month!
FULL VIDEO REPLAY
of my latest webinar is now available! If you missed my latest
"Iron Condors 101."
I've posted a free video replay of my 60+ minute
presentation. Follow the link below to watch and you'll discover
how you can consistently earn 10% a month… even in flat markets…
using risk-controlled Iron Condor trades. You'll find out which
indexes are best for Iron Condors and how you should allocate
your portfolio to this strategy. And you'll receive free
action-specific trades you can execute immediately - for gains
you can earn in as little as 9 days!
Click here to watch this video replay now.