The Iron Condor Pinnacle strategy is a conservative, non-directional, income generating, all weather strategy that is optimized for the following conditions:
- It’s optimized for the “New Political Era”. This strategy can handle the volatility that can come out of Washington DC, which can sell-off stocks at any time
- This strategy does well when the market trades sideways and choppy – like it did for almost 20 months, 2018 through Nov 2019, where it was difficult to generate consistent positive gains using stocks, ETFs or indexes.
- As of June 2020 the market stabilized from the COVID crash and the market became optimum for a non-directional strategy such as Pinnacle. The elevated volatility allows us to bring in higher levels of premium where the strategy should be able to generate 5% to 8% monthly through May of 2021.
Characteristics and Returns for the Iron Condor Pinnacle Strategy:
- Pinnacle is a non-directional, all-weather strategy that can generate positive monthly returns in upward trending, downward trending, or sideways and choppy markets.
- We hold a maximum of 3 to 4 positions at any one time representing 30% to 40% exposure of the portfolio
- Each position represents 10% of the portfolio and is open for 2 weeks
- We hold sufficient cash in the accounts to make trade adjustments when volatility unexpectedly rises
- This strategy is conservative by construction because we have a low level of exposure, but we’re still able to generate solid monthly gains
- Targeted returns for the total portfolio are 3% to 5% per month after commissions
- The strategy finished 2019 UP +36.8% realized after commissions
- Capital preservation and safety are a top priority
- We have 18 years of experience in trading and optimizing this strategy