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Subject:  Re: best ways of using options for income? Date:  3/5/2014  7:04 PM
Author:  Buddy46 Number:  10987 of 11356

I would like to know how a rising or falling market would effect this strategy? It is a non-directional spread meaning it will make money no matter what way the market moves. Not to mention they are all short-term positions(some lasting only minutes)...When you are in the market for such a short period of time the long term outlook has no effect on these positions whatsoever. The link you attached is an iron butterfly which is a credit spread but if you found the right page to tell you what a long iron butterfly is you would see that the maximum loss is the net debit paid for the spread...and yes as I mentioned earlier if you hold these positions long they can be very risky if the underlying does not move away from your longs an the options lose time value...But I am sure you know as well as most investors/traders that for a stock thats $300-$800 to move a few dollars as percentage it is not very large (often times movement is not even needed). Yes occasionally they can trade in a very tight range which is the worst case, but the odds are in your favor, and isn't that what trading is all about? putting the odds in your favor. Yes this spread is slightly more complex than just buying a put or a call but having taught many people over the years, some with no options trading experience at all, it has been quiet easy to teach and for students to understand...many of times the best things in life aren't down the easy road.

As for my service you are certainly entitled to your own opinion. I take a lot of pride in having successfully educated many people how to use my strategy. I do not participate in these boards to push my product, rather I enjoy sharing my opinions and building my own knowledge base on subjects I am passionate about. Options are not for everyone as I mentioned earlier.

I also think its is a waste of time to try to tell me how my strategy works...But everyone is certainly entitled to there own opinions.
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