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Easy Option Trading – Taking Profits On an Iron Condor Using Salesforce.com CRM

In a previous post, I explained how I used an easy option trading strategy to trade around an earnings report. Today I will show you how I took profits.

On November 27th 2018, Salesforce.com, (ticker CRM) reported earnings. Typically, you can expect is a lot of volatility before earnings, and sometimes the volatility is still there for a few days, as investors try to make sense of what the report means for them. The price of the options is typically elevated, on both the call and put side.

Salesforce.com Earnings Report

The earnings reported were 61 cents per share, which was higher than earnings reported 1 year ago of 39 cents per share. Salesforce.com reported an increase of revenues of $3.39 billion, an increase of 26% year over year. When the market opened, the stock popped up to a little over $139 a share and started to drift downward as traders tried to absorb the results.

I sold a 5 strike wide Iron Condor for $154, and yesterday I closed the position, for 50% of what I sold it for.  I bought the iron condor back for $76.  When I sold the iron condor, the January options were 51 days until expiration, and when I closed the position, there were only 15 days until expiration.

Because I invest with a Tastyworks, I didn’t pay any fees to close this iron condor. Low fees mean I get to keep more of my money, and that alone can be a huge increase in any stock option traders income.

stock options strategies

So you can see that I held this position for 36 days, and I basically just waited for time decay to work with me. A lot of people prefer to buy options, picking a direction either up or down, and hope that the value of their options increase. It is much more profitable to learn stock options strategies like verticals and iron condors and become an option seller rather than a buyer.

You can see from the chart below that it has been a heck of a ride for CRM over the last 36 days, as the stock market in general has been pretty volatile. But in the end, CRM is pretty much around where it was a little over a month ago, and I was able to profit from this trade.

stock options strategies

Anybody can learn one or two easy options strategies and make a lot of money. It isn’t really hard, and it doesn’t cost any money to open an account at Tastyworks. Tastyworks is the best brokerage for options trading, because they keep their fees extremely low, and provide continuing education for their customers. You can actually open an account for no minimum deposit, and start investing when you feel comfortable with as little or as much as you like.

==> CLICK HERE TO LEARN MORE ABOUT TASTYWORKS


13 Replies to “Easy Option Trading – Taking Profits On an Iron Condor Using Salesforce.com CRM”

  1. Kenny

    Hi this is a very interesting site and post. It certainly gets me thinking and I would love to know more about trading. I will be book marking your site for further detailed reads when I have the time later. I would love to know do you do this professionally for a living? Many thanks for this, Kenny 

    • James

      I am not a professional trader.  I do this on the side. The money I have made has allowed my wife to stay home with our kid, and we live quite comfortably thanks to the income that trading stock options has provided.

  2. Myles

    A good friend of mine trades options as a side gig and in one of our many chats he was telling me how he uses the iron condor strategy. He’s always on the lookout for new information, better trading platforms and the like. Hopefully Tastyworks is available to Canadians. This article will be of interest to him. Appreciate the info and all the best with your trading in 2019.

  3. Madisonbco

    I have never been able to understand how to trade options, although I have tried to learn a couple of times. I may take a look again, there are clearly many people benefitting from this strategy! I appreciate that you included a few of your favorite books for reference. Does options trading take on even more of a risky profile with the current market volatility?

  4. mzakapon

    Hi James, at first I am going to bookmark your site for my future reading. I am still learning about trading strategies. I have not found any consistent profit strategy yet. It looks you have enough experience on trading. Do you have binary option and Forex strategy experience? I need to study your article more for my satisfaction and going to bookmark your page for future reading. I am looking forward for your answer.

  5. mzakapon

    Hi James, at first I am going to bookmark your site for my future reading. I am still learning about trading strategies. I have not found any consistent profit strategy yet. It looks you have enough experience on trading. 

    Can anybody make money option trading, or do you need a special education?

    • James

      I am glad you found this information useful.  And to answer your question, no you do not need anything special to learn how to trade stock options. With just a single easy option strategy, you can make a ton of money.  I suggest you open an account at Tastyworks. They are the only broker made specifically for optrion traders, and provide daily content on to how to make the most out of this volatile stock market.

  6. Cora Mitchell

    Hi,

    I want to thank you for sharing this wonderful information.  There are so many options to earn money online!  Tastytrade sounds like a great place to learn easy option trading with all of the educational training included and their low rate for trading.

    I’m interested in learning more about Tastytrade and how it works for the average person.

    Thanks again for sharing!

    Cora

  7. Nuttanee

    Hi there,

    I stumbled across your page and I have a few questions. By the way, I am also a Disney World nut lol. Which one do you prefer best betweens trading options, stock markets, or crypto currencies? I am basically a beginner in all 3 but I did some trading with the crypto and stocks but never options. Will take a look at tastyworks. Thanks.

    • James

      I am a stock option seller, focusing mostly on liquid ETFS like SPY, IWM, and DIA.  Occasionally I will put a position on individual stocks like this one CRM.  

      I do own a small BTC position, which I plan on holding until they stop mining it.

  8. phranell86

    These are quite impressive figures! I have heard a lot about options trading over the years but have largely stayed away due to the volatility of the market.

    Sometimes you expect the price to move up or move down, but it remains stagnant. It is good to know that one can still make profits using the iron condor strategy. I really need to do some research on this before making a commitment. 

    It is interesting to hear that Tastyworks offers the most reliable brokerage options for trading with no minimum deposit, however, I’d love to know if they have some form or recurrent maintenance fee associated with running an account.

    Forgive my naivety, but I’ll love to ask, can one trade options on the Tastyworks platform using only a mobile device? 

    • James

      Tastyworks does not have any recurring maintenance fees. They have the lowest fees to open a trade, and closing trades, like the one in this article, have ZERO FEES.

      With a TASYTWORKS account you can trade via web browser, desktop application, or on a mobile device.  You can switch between as you need.  You get access to the same technology no matter how you choose.

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