Frequently Asked Questions

If you have questions about TradingPro Profits, The Daily Market Advantage, or MarketDNA, please take some time and review the answers in our FAQ section.  If your question is not answered, please feel free to submit your own question using our support form.

Question about Monthly Income Trading

Q: I have read the special report and if I’m interpreting it correctly we have been in a low volatility environment for the past few months, but appear to be entering a period of increased volatility.  So put debit spreads seem to be in order along with vertical call spreads for credit at areas of [...]

Question about buying calls – synthetic stock

Q: I was playing around with SDS and noticed something interesting.
If I buy a call (and not sell a put) I am limiting my loss to the premium paid yet am able to participate in unlimited gain. This way I don’t have to mess with buying the actual stock to set a stop.
I guess I [...]

Question about Selling Puts

Q: With the selling of Puts, do we have to worry about assignments?

A: If they are out-of-the-money they will never be assigned.
When the option is in-the-money AND is the front month option AND has less then .25 cents of extrinsic value then be cautious. Ex-dividend dates increase your chances of being assigned

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Questions about Inside Days

Q: If a trade still may be worth placing on Day 3 and your rule states that it should be closed out at the end of that day (or the open of day 4), is there a certain time of the day on Day 3 after which you wouldn’t make the trade because there’s not [...]

Questions about the Greeks

QUES: In your trading experience with both the iron condors and double calendar spreads have you found it any more advantageous to theta scalp if I have time daily to monitor?
ANS: I don’t theta scalp a double calendar or an iron condor since they already have long calls or puts that protects your position while [...]

Options Trading Questions

1) I understand that you initiate your positions 30-40 days prior to expiration but you also talk in your videos about adding to your positions. Are you referring to adjustments that may become necessary due to a breakeven being threatened? If not, could you explain?
ANS: I only add to positions to increase my profits and [...]

Iron Condor Questions

1. When it is best to put an Iron Condor and when it is best to put a Double Calendar? Is there any circumstance that favors one or other strategy?
ANS: Please see the Market Report 11-22-08.  If you are not yet a member, get 30-Day Trial for under $10 today!

2. On the SPY Iron Condor [...]

Victory spreads and volatility

Q: So far so good on my first month of condors…..2 weeks in….still delta neutral. Haven’t had to adjust yet…..but ready to if threatened.
I want to try the back-ratio type of trade to protect against a huge downstroke in January, but for the life of me I cannot get the analysis chart to look like [...]

How to build calendars

Q: As I build my profit expiration tent i tend to like and use calendars. So thinking nov dec spy I saw that there is very small difference buying a 107 calendar call (sell nov buy dec)versus a 107 calendar put. Am i crazy? or is it ok say to do 107 105 103…etc all [...]

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