Jack, the Greeksman, generously shares his monthly income trading system - the Big Mouth Iron Condor (BMIC).

If you risk US$1,000 per trade, your target is US$100 per month. It sucks. Yes, it sucks. But imagine, if you were to put US$1,000 on a fixed deposit, do you get US$100 per month?

. Something worth looking into. I always believe in using spreads as a mid-term strategy, to collect money to pay off monthly bills!

The BMIC involves the use of Iron Condors, a spreads strategy that bank on the underlying to remain around the same price till the Iron Condor expires worthless. I am intrigued by how Jack picks the strike prices for the Iron Condors by using Implied Volatility and Delta. He also discusses trade adjustments in event the BMIC is threatened. Next step, to paper trade with the system. Spreads are typically difficult to back test as historical Option price and greeks data are pricey.

Do also check out Jack’s forum for discussions on trader psychology which I find enricking and enlightening.

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