The Iron Condor Pinnacle strategy is a conservative, non-directional, income generating, all-weather options trading strategy
- Pinnacle can generate positive monthly returns in upward trending, downward trending, or sideways and choppy markets
- The strategy opens credit spreads and iron condors using weekly options primarily on the S&P500 index, SPX
- We hold a maximum of 3 to 4 positions at any one time representing 30% to 40% exposure of a total portfolio
- Each position represents 10% of a portfolio and is open for 2 weeks
- We hold sufficient cash in the portfolios 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 return for a total portfolio is 3% to 5% per month after commissions
- Typical return for a single trade is 10% to 18% in 10 trading days
- The strategy finished 2019 UP +35.6% realized after commissions for a total portfolio
- The strategy finished 2020 UP +34.6% realized after commissions for a total portfolio
- The strategy is highly optimum in 2023 because volatility (VIX) has finally come down from persistently high levels since COVID, but it’s still slightly elevated. Slightly elevated volatility is optimal for selling index credit spreads.
- Capital preservation and safety are a top priority
- We have 20 years of experience trading and optimizing this strategy