*RISK DISCLOSURE: FUTURES AND OPTIONS INVOLVES SUBSTANTIAL RISK OF LOSS, AND IS NOT SUITABLE FOR ALL INVESTORS. ONLY RISK CAPITAL SHOULD BE USED. MARGINS ARE SUBJECT TO CHANGE. PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. AN INVESTOR COULD POTENTIALLY LOSE MORE THAN ORIGINALLY INVESTED.*

VIX is the ticker symbol for the Chicago Board Options Exchange Volatility Index, a popular measure of the implied volatility of S&P 500 index options. Referred to by some as the fear index, it represents one measure of the market's expectation of volatility over the next 30 day period.

When the VIX increases it enables us to sell credit spread call and put options on the S&P that are much further away from the underlying S&P futures market and still be able to collect a large amount of premium for your account and risk. We generally look to capture 2-4% per month, but in certain cases much greater, especially when the VIX gets near 30 on the charts. The option premiums become extremely inflated allowing us to collect a higher premium.  THERE IS NO GUARANTEE FOR WINNING TRADES AND YOU CAN LOSE MONEY.

When the trade is opened, you will receive a cash credit in your account. That credit represents the maximum profit you can earn on the trade.

FUTURES AND OPTIONS INVOLVES RISK AND IS NOT SUITABLE FOR ALL INVESTORS. charts below courtesy of yahoo.com and barchart.com VIX definition from wikipedia.com

Trading In A Consolidating Stock Market

An iron condor is best suited for stagnant or sideways markets. So long as the market stays flat, or within an identified range, all of the options will expire worthless allowing you to keep the credit generated when the position was originally opened.  Trading a large index like the S&P 500 takes advantage of its tendency to move slowly, within defined ranges. We believe that in any trading strategy, prudent money management must be the first objective. If the market was to move outside of our identified range and at the options expiration be beyond one of the options we purchased as a hedge, our maximum loss would be the difference between the option sold and option purchased less the initial credit received. It is imperative that we purchase the long option upon entry of the trade, otherwise unlimited risk and losses could occur.

Trading The S&P 500 And Other Large Index Products

It is possible to trade iron condors on individual stocks. However, we prefer to trade the position on large stock indexes such as the S&P 500. These indices tend to move more slowly than individual stocks, are less prone to large gaps up or down as compared to individual stocks, and carry highly liquid option chains. Our goal is to construct an opening position that provides a wide profit zone, giving the index ample room to move over the life of the trade.

The Time Means Money program exploits the time decay aspect of option premiums, potentially putting you on the receiving end of the fact that most futures options expire worthless.

According to a breakdown by the Chicago Mercantile Exchange Clearing House, more than 85% of all S&P options sold during the last three years expired out of the money and worthless.*

 * Source: Chicago Mercantile Exchange Clearing House; Analysis of S&P options sold during the period 2004 through 2007.

          Is Time Means Money right for you?
This premium collection program is for speculators who are at a point in their lives where they can assume some calculated risk. This is not a get rich quick program. This program will identify trades that have a statistically high probability for success. With your approval, we will enter and exit these trades for you. Participants must understand that even with probability on their side, there is a calculated risk of loss on each and every trade.

If you understand that most options expire worthless and the logic of harnessing time makes sense to you, or if you would just like to learn more about selling options, please feel free to contact Michael Maniatis at toll-free 888-325-9300 or visit http://www.timemeansmoney.com/  

*RISK DISCLOSURE: FUTURES AND OPTIONS INVOLVES SUBSTANTIAL RISK OF LOSS, AND IS NOT SUITABLE FOR ALL INVESTORS. ONLY RISK CAPITAL SHOULD BE USED. MARGINS ARE SUBJECT TO CHANGE. PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. AN INVESTOR COULD POTENTIALLY LOSE MORE THAN ORIGINALLY INVESTED.*