We are getting very close to the end of the September Option cycle. Since the start of August, the market has been one crazy place to be. The has jumped to from around 15 to 25, increasing the value of options across the board.

Currently I am only exposed in one Index, the Russell 2000. With personal and paper money positions open, I’ve been following the index’s movements closely and am feeling very good about the next weeks movements.

On Tuesday Sept. 18th, the Federal Reserve is expected to lower interest rates anywhere from 25 to 50 basis points. I’m not completely sure what the effect on the broader indexes will be when this occurs.

Personally, I think a lot of the rate decrease has already been priced into the market, and we may see a minor spike. If the Fed comes out with a lot of negative commentary, this may change the momentum and we could see the bottom drop out.

I would be very surprised if the dropped any lower than the 730 range, so I’m fully expecting a return this month on all positions.

Currently the paper money account has $135,204.50 sitting in the bank. That means that in just over a years time the account is up over 35%.

Over the next few months I’ll detail a newer option trading method that I’ve been working on for a while. It is much more of a long term investment approach that should still yield very high returns with minimal risk.

I’ll be testing it live in the market with not only this paper money account, but also with the real thing in my personal account. The foundation of the strategy will remain the Iron Condor. I am a firm believer in this option position and its potential to make solid returns on a month to month basis.

Categories: Options Trading, Papermoney