Knock Down a 79% Annualized Return with an Over 90% Probability of Success!

Awhile back at the 'How to Know the Perfect Time to Exit a Spread' webinar we talked about when to close a spread early--in other words, when to "Take the Money and Run!" The conclusion from that webinar was that whenever a credit spread has less than $0.05 cents remaining, it's a smart idea to close the trade and bag your profits because you instantly remove any further risk. Your margin is freed up for another spread and you can relax knowing the profits from the spread you closed are in the bag.


As we approach October expiration, consider closing out of any plays that have earned the majority of their credit---from about Wednesday on the market makers typically widen their bid/ask spreads making exits less efficient so either Tuesday’s close or Wednesday’s open would be a great time to close trades early. And depending on your risk tolerance, you may also even consider closing them out a bit earlier.

Of course there’s always the “option” to ride trades all the way to expiration and avoid further commissions---if a spread is really out of the money they’ll typically expire worthless and you'll keep all the credit---a great position to be in!

There's a lot more details on these and other exit strategies inside the Package Buyers' area of the website--for those of you with The Winning Secret trading package, you can just log in, click on the Video Tutorials tab and select the webinar you'd like to watch. And if you don't have the package yet, you can add this valuable information to your trading library right here.

Trader’s Tip:

Historically,

• October marks the end of the most bearish 6 month period for the Dow and S&P 500. It also marks the end of the most bearish 4 months for the NASDAQ.

• On 10/10/2008, the Dow lost 18.2%---1874 points---ending the week as the most bearish for the Dow in the history of Wall Street.

• October is known as the “bear killer”.

Key Dates:

• October 14th--options expiration for some indices.

• October 15th--options expiration for all equity and all other index options.

• November 18th--options expiration for some indices.

• November 19th--options expiration for all equity and all other index options.


Market Outlook

Friday, the Dow Jones industrial average closed above 11,000 for the first time in five months. Ironically, this 11K benchmark came the day before the three-year anniversary of the market's ALL-TIME high--and while investors remain hopeful that the Federal Reserve will take even more action to re-stimulate the economy, the Dow is still 22.3% below that remarkable day.

The release of a weak jobs report, along with a number of other bearish indicators---including the dollar losing more ground---has only fueled expectations that the Fed will announce a new program to encourage borrowing when it meets again after the mid-term elections. In addition to this new program, the traders are banking on the possibility that the Fed will print more dollars---another factor that sent the stock market rocketing higher last week.

This week, economic data will include consumer and producer prices, as well as retail sales and consumer sentiment. These reports should shed some light on whether or not the economy has slowed down enough to justify further action from the Fed.

Private employers, worried about potential tax hikes and the costs associated with health care, only added 64,000 workers last month which fell short of the 75,000 expected. Some 95,000 government jobs were axed which included temporary census employees. Overall, the unemployment rate is now holding steady at 9.6%.

While investors and traders wait to see if the Federal Reserve will take advantage of a window of opportunity, we’ll take this opportunity to take advantage of a 30-day window on a couple of ETF plays for the week...

What are the Secrets of the Week?

Our first play has been trading well within our short strikes since July--a perfect neutral candidate for a high-probability iron condor. And with one of the most bullish Septembers since the 1930’s now behind us, October is shaping up to be another strong month for the Bulls---what better time for a bull put spread?

Both plays are on ETFs and generate a generous 8-10% profit with an over 91% probability of success---and with only about a month’s time for these trades to play out, we definitely have the winds blowing in our direction. Let's get started...

You can get in on this week's trades along with two new high-probability trades per week by clicking here now. http://www.cashflowheaven.com/ws

Stack the Deck on Every Trade,

Robert