Frequently asked Questions
What does This One Works do?
This One Works is an educational website which shows you how to trade one specific options strategy to make consistent profits.
What is options trading?
Options Trading allows anyone to make money from stock markets without buying and holding individual company stocks and shares.
Options are continuously bought and sold on the world's major stock markets, and if done correctly you can make huge returns trading options for very little effort.
Can I trade options?
Yes thanks to technology, anyone can trade options. Modern options brokers operate so effectively online that you'll never have to speak to your broker. Just set up your online brokerage account once and start making profits.
What is an option?
An option is the right to buy or sell something, in this case stocks and shares. But in theory options are used for property, commodities such as barley crops - almost anything!
Where are options traded?
The majority of U.S. stock options are traded at the Chicago Board Options Exchange, the world's largest options exchange. This is the equivalent of the New York and London stock exchange for options traders, and as with the stock markets, you'll need a broker to trade options on the exchange for you.
Can you trade options for me?
We are not options brokers so we don't offer a service where we hold and trade your money for you. But as an options trading educational provider, we have an auto trade service, where you can copy our options trading strategy.
You can read more about this here
Where can I learn more about options trading?
If you're new to options trading we strongly suggest that you attend one of our FREE online tutorials before giving a try yourself. We'll show you in detail how options trading works and you'll get the opportunity to put your own questions to an experienced trader.
Click to check the availability of our next FREE session
Advanced Trading Questions
What Do You Trade?
We trade an Options strategy called the the Iron Condor and we normally trade this on the S&P 500 index (ticker symbol SPX).
We trade on the indexes, as an index is not prone to such violent movements as individual stock and therefore this already helps to reduce our risk.
Do You Only Trade US Indexes?
Yes. The US options market is far more sophisticated than the UK or any other option market in the world.
It has the best option prices and the best brokers. There are over four thousand optionable stocks and indexes which dwarfs the next biggest options market, the UK which has about 300. This means the US markets are liquid and give us plenty of opportunity to make profits.
If you want to trade options then the US market is the only market to trade in.
The good news is that you don’t have to be a US citizen to trade US Options. You can trade from whatever country you live. All you need is an internet connection.
What is an Iron Condor?
An Iron Condor takes advantage of stocks or indexes that are trading within a range.
While most option strategies focus on relying on movement of the stock (either up or down) to make its profits this strategy doesn’t really care about where our index moves as long as it does not make too many violent moves in one specific direction in a month.
By carefully following the markets each day for the past eight years and using sophisticated finely tuned mathematical system we are able to predict the upper and lower range of the indexes will trade within.
As long as our chosen index finishes anywhere within this upper and lower range at the date our options expire you will have a winning trade.
We don’t care what the Index does. Up, down or nothing. It just needs to stay within the range zone to make some excellent money.
At the upper range strike price we will place a call credit spread and at the lower range strike price we place a put credit spread.
A profit is made hen we sell the call and put spread, and we get to keep this profit when the index finises within our range.
If you're still not sure how this works, we suggest you attend one of our free online tutorials
Click here to check the availability of our next FREE session
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