Q:  Which has the greatest chance of occurring?
     1.  The sun rising tomorrow morning
     2.  Hotter in Summer, Colder in Winter
     3.  RUT hitting 1000 by noon tomorrow

A:  Is a trick question — because all have the same odds…..

It’s funny because John, along with so many other traders is frustated by the never ending upmove of the RUT. If you haven’t been trading the RUT the last couple months, you won’t understand.

Riddle of the Day is a post from Option Selling.
To learn how you too can earn 8-12% Monthly Returns Safely and Conservatively check out OptionGenius.com

For October 2009, OptionGenius.com was  + 2.72%.

Not very impressive is it. But the S&P was down -1.98%.

Trade #4 for the month was rolled forward to November. If I had not rolled it, it would have expired worthless and with a profit. Instead it is now  November Trade #3.

Both iron condors did great in October. I took a more conservative stance this month because of October usually being a very bad month for the markets. And this one did not disappoint.

It started out smooth, then dropped towrdas the end of the month, then reversed and rallied up just as fast as it had dropped.

Can you saw “whipsaw?”

But  both condors did great with no adjustments required. What really hurt was an IWM butterfly that busted my chops. If I had just put that trade on and forgot about it, it would have been profitable, but alas, that’s not how it works, so this trade was a loser.

Regardless, it was a positive month in a year that has been anything but ordinary. The site is still on track for a 50% plus year if November and December work out.

Right now I am up + 36.11% for the year. Which is better than most hedge and mutual funds, and double the S&P.

Results for October 2009 is a post from Option Selling.
To learn how you too can earn 8-12% Monthly Returns Safely and Conservatively check out OptionGenius.com

Buy Dec 590 Call, Sell Nov 590 Calls for a debit of 10.65 per spread.

If you do just one contract, it will cost you $1065 plus commissions. If RUT does not move much by Monday you should have over a 10% gain. Even if it moves about 8 points either way, you should still have close to a 10% gain.

This is a great trade to papertrade.

RUt Calendar Spread Graph

Free Trade: RUT Calendar Spread is a post from Option Selling.
To learn how you too can earn 8-12% Monthly Returns Safely and Conservatively check out OptionGenius.com

This is following a nice double digit gain last month.

We had four trades this month:

1. SPX, the S&P 500 index
2. RUT, the Russell 200 Index
3.  AAPL, Apple Computer
4.  WMT, Wal-Mart.

I recorded double digit gains on three of these and a 9.5% gain on the SPX position.

Just another day at the office.

OptionGenius.com members can see each trade and any adjustments on the Past Trades page in the membership section of the site. If you are looking for double digit monthly returns, what are you waiting for? Sign up today. I already have one trade for June underway and I am looking for more.

One of my favorite habits is to reward myself after a positive month. To treat myself,  my wife and I go out to lunch at one of our favorite restaurants. Normally it is my favorite, On The Border. But this month, I think we will go out for Sushi. Since my wife introduced it to me I have really started to like it. But I still need here to mix the Soy Sauce and Wasabi together. Someone it just tastes better when she does it.

May Trade Results is a post from Option Selling.
To learn how you too can earn 8-12% Monthly Returns Safely and Conservatively check out OptionGenius.com

Total return was a gain of 11.87%. I put on four trades and all four were winners. We had an Iron Condor on the RUT, a Credit Spread on POT, a not so naked Put on C, and a butterfly on USO.

I expect May will also be a good month. I’ve got three trades on already for May and two are already near the point where I am going to take them off for double digit returns.

My goal is to have a 10% return every month. So far I have come very close. But in the stock market things don’t always go your way. We cannot control the market, we can only adjust to what it does. This month I was fortunate that the market calmed down a bit. The last few months have been insane. As things settle and the VIX (Volatility) continues to drop Option Income Selling Trades will do very well.

April 2009 Results is a post from Option Selling.
To learn how you too can earn 8-12% Monthly Returns Safely and Conservatively check out OptionGenius.com