Gain The Power Of Consistent Income With Strangles

In this lesson we cover everything we will go over in Module 1:

• Calls and Puts Basics

• Example of Call Directional Trade

• Example of Put Directional Trade

• The Directional Trading Strategy

Call Options

• Call options are financial contracts that give the option buyer the right, but not the obligation, to buy a stock, bond, commodity, or other asset or instrument at a specified price within a specific time period.- What that Means Basically We Are Thinking A Stock Will Go Up And Are Getting A Contract To Be Able to Buy That Stock At A Given Price.- Calls We Make Money When The Stocks Go Up By A Certain Time We Choose.

Put Options

• A put option is a contract giving the owner the right, but not the obligation, to sell, or sell short, a specified amount of an underlying security at a predetermined price within a specified time frame. The predetermined price the put option buyer can sell at is called the strike price.- What that Means Basically We Are Thinking A Stock Will Go Down And Are Getting A Contract To Be Able to Sell That Stock At A Given Price.- Puts We Make Money When The Stocks Go Down By A Certain Time We Choose.

An option chain, also known as an option matrix, is a listing of all available option contracts, both puts and calls, for a given security. It shows all puts, calls, strike prices, and pricing information for a single underlying asset within a given maturity period.

Call options are financial contracts that give the option buyer the right, but not the obligation, to buy a stock, bond, commodity, or other asset or instrument at a specified price within a specific time period. The stock, bond, or commodity is called the underlying asset. A call buyer profits when the underlying asset increases in price.

Put options are contracts giving the owner the right, but not the obligation, to sell, or sell short, a specified amount of an underlying security at a pre-determined price within a specified time frame. The pre-determined price the put option buyer can sell at is called the strike price. A put buyer profits when the underlying asset decreases in price.

1. Stock Direction stop losses are to be placed and held at the predetermined price point.

2. Once the directional trade is UP to 30% move the stop loss to the entry price or 10% above entry.

3. It is recommended that you get an odd number of contracts i.e. 3, 5, 7, 11, etc. This allows you to have a trophy when the position goes parabolic. So in the example of 5 contracts, you can sell 4 and in the example, you make 300% you can leave 1 contract on to see what happens, a free look.

4. The goal always is capital management, so when the opportunity presents itself you should take off what it cost you to enter the trade. This is usually viable at 50% or more.

5. Always enter all positions with the same amount of money every week. Position sizes should only be increased when your account size is double (100% up) or 2.5 times (150% up). At that point, it is best to increase your position size by 25% so for 5 contracts add 1, 10 contracts add 2, etc.

6. Key Definitions:

• Lotto: There is a 50% chance of loss on the investment.

• Suicide Lotto: There is a 75% chance of loss on the investment.

• Quad Suicide Lotto: All investments should be considered at a 100% chance of being lost.

In this lesson we cover everything we will go over in Module 2:

• The Strangle

• Strangle Basics

• The SPX Trader Index Strangle Strategy

• Example of an Index Strangle

• The SPX Trader Stock Strangle Strategy

• Example of a Stock Strangle

A strangle (long strangle) is an options strategy where the investor holds a position in both a call and a put option with different strike prices, but with the same expiration date and underlying asset. A strangle is a good strategy if you think the underlying security will experience a large price movement in the near future but are unsure of the direction. However, it is profitable mainly if the asset does swing sharply in price.

Pros

• Benefits from asset's price move in either direction.

• Cheaper than other options strategies, like straddles.

• Unlimited profit potential.

Cons

• Requires a big change in asset's price.

• May carry more risk than other strategies.

1. Index strangles are good to enter in the first 10 minutes of the market open.

2. Place the same amount of money or as close as possible on each leg of the strangle.

3. Upon the order filing, immediately place a 50% stop loss on both legs of the strangle.

4. When one leg of the strangle hits the 50% stop loss, raise the winning leg’s stop loss to the entry price.*

5. The goal is to take off the 50% of the winning position off at 100% profit to lock in the total cost basis of the strangle.**

6. Stops will remain at entry on the remaining open position; or depending on your risk tolerance, it can be moved to 50% profit stop loss. This ensures the entire strangle is profitable and you are guaranteed a sizeable profit even if the winning leg pulls back considerably.***

7. Special notes for those using the alert service:

*There are instances where the market stays in a tight range and causes theta on premium to burn faster. In those instances, you can move your stop loss to 75% to ensure you do not get stopped out before a market runs. If this happens, alerts will be sent for traders to take the necessary actions.

**Depending on the nature of the market, the position might be held longer for higher profits before the first half of the position is closed. Alerts will be sent out in a timely manner to let you know and take necessary actions.

XYZ Stock at 100

So let's say we have a strangle that will cost us 100 dollars to put on. And each leg is 50 dollars.So we have 5 contracts at .10 cents.5 contracts of calls = $505 contracts of puts = $50

Our stops go in at 50% on both so set to .05 cents. The stock goes up from 100 to 102.

**Our call options go from .10 cents to .20 cents doubling so that gives us a total position in our calls of $100.Your profit would be +$50.

*But our puts went down to our 50% stop loss. We are out at -$25.Our Total Position is now worth $125.

*So we move our stop on our calls to .10 from .05 cents.

**So now what we need to do is sell 50% of our profits which would be 25 dollars of our calls we have 5 contracts so we would need to sell 75% of our contracts or 3.75 we would round up which would be 4 contracts. Leaving 1 contract of profit on to run. Another Example if the position went to 200% we could sell half our contracts or 2.5 rounded up to 3 contracts and could leave 2 contracts on to run.

***So now you can leave your stop loss at .10 cents on the call or move it to .15 cents to ensure you make some money on the position even if it pulls back.

Important to note we will be closing this generally when SPX

Trader says take profits at will but definitely before expiration. If that leg is in the money you run this risk of being assigned.

1. The stock strangles are best entered 30 minutes before the market close on Friday.

2. Place the same amount of money, or as close to even as possible on each leg of the strangle.

3. Stop losses are optional as the losing leg of the strangle can turn profitable later in the week.*

4. When the winning leg of the strangle is over 100%, you can roll the position to a higher/lower leg to continue riding the stock.**

5. The goal always is capital management, so when the opportunity presents itself you should take off what it cost you to enter the trade. This is usually viable at 50% or more.

6. Always enter all positions with the same amount of money every week. Position sizes should only be increased when your account size is double (100% up) or 2.5 times (150% up). At that point, it is best to increase your position size by 25% so for 5 contracts add 1, 10 contracts add 2, etc.

7. Special Considerations:

During periods of high volatility in the market, the losing leg of a stock strangle has a higher probability of turning profitable before the end of the week. The trader also needs to take into consideration how early in the week the winning leg becomes profitable and covers the entire cost basis of the position.

Rolling the winning leg of a strangle should always be At The Money (ATM) strikes; this is particularly important the closer the trading week comes to an end as theta starts to disintegrate considerably on the Out The Money (OTM) strikes.

A strangle is an options strategy where the investor holds a position in both a call and a put option with different strike prices, but with the same expiration date and underlying asset. A strangle is a good strategy if you think the underlying security will experience a large price movement in the near future but are unsure of the direction. However, it is profitable mainly if the asset does swing sharply in price.

In this lesson we cover everything we will go over in Module 3:

• The Little Known Company and The SPX Trader

• Our Recommendation

• Breakdown of the Alert Service

So Here is the Link to the Alert Service:

Blueville Capital

WARNING before you fill out the Free Trial I recommend you checkout the next two lessons on insights to get the most out of the service.

This is for someone with at least $5,000 dedicated to this strategy. And has at least 1 hour a day Monday through Friday in the AM to dedicate to the market. Or who can check their phone throughout the day with the directional trades.

*You can setup a notification on your phone when he posts closes to be less active.

I would recommended at most only putting 10% at risk on any given trade. Really 5% is best.

* When I say 10% that is for any strangle so 500 dollars total 250 on either end.

This will allow you to diversify and ensure that your winners will overtake your losers.

Try to get your strangles as equal as you can.

So Here is the Link to the Alert Service (in case you missed it):

Blueville Capital

WARNING before you fill out the Free Trial I recommend you checkout the next lesson on insights to get the most out of the service.

I would say anyone interested in order to get the most out of his alert service to start the free trial on a Monday or a Wednesday, in the early AM around 8 AM. This way you can get the trades.

I would also recommend you practice the execution on paper for at least the first day, make your paper trading account the same size as your real live account.

Have an account funded and ready to trade make sure you have the appropriate options level approval.

Blueville's Index Performance

Blueville's Stock Performance

So Here is the Link to the Alert Service (in case you missed it):

Blueville Capital

I Hope You Check It Out And Absolutely Kill It In The Market!

In this lesson we cover everything we will go over in Module 4:

• The Long Straddle Strategy

• Example of a Long Straddle

• The Short Strangle

• The Short Straddle

• Morning Routines

• Hardware Recommendations

• Congratulations

A straddle (long straddle) is a neutral options strategy that involves simultaneously buying both a put option and a call option for the underlying security with the same strike price and the same expiration date.

Stock A Trading at $47

• Buy Jan 2020 A 46 Call @ 2.00

• Buy Jan 2020 A 46 Put @ 1.50

• Lot Size: 100 or 1 contract of each.

• Net Premium Paid: $350

• Max Profit: Unlimited

• Max Loss: Net Premium Paid: $350

The short strangle, also known as sell strangle, is a neutral strategy in options trading that involve the simultaneous selling of a put option and a selling a call option at different strike prices of the same underlying stock and expiration date.

This is a limited profit strategy and an unlimited risk strategy. There is an alternative strategy that we use to profit from a sideways move which caps our risk which is an iron condor.

A short straddle is an options strategy comprised of selling both a call option and a put option with the same strike price and expiration date. It is used when you believe the underlying asset will not move significantly higher or lower over the lives of the options contracts.

This is a limited profit strategy and an unlimited risk strategy. There is an alternative strategy that we use to profit from a sideways move which caps our risk which is an Iron Condor.

Morning Routine

1. Health and Mental Preparation

2. Check Pre-Market

3. Check Index Futures Per Sector

4. See What News is Out

5. Check Volume and See What Others Are Doing

6. Start Planning Your Trade When You Find a Suitable Stock

7. Look For Cheap Entries

8. Buy The Dip/Sell The Rip

9. Manage Your Trade

10. Log Your Trade/Review It Later

Day Trade Secrets Facebook Group

https://www.facebook.com/groups/daytradelifestyle

When considering your trade desk setup it is important to ask yourself do you plan on traveling often or staying stationary?

Some traders enjoy having four monitors to utilize. 1 screen for order execution and 3 screens for chart reading.

Other traders like the mobility of having a single laptop or tablet. With a laptop you have the option to always connect to multiple monitors using the hdmi port and a hdmi adapter that plugs into the usb port.

Here are some resources (not sure the links or sources if prices are still the same, these are all to help you get some insights, everyone has their own style, as long as you meet the minimum system requirements for your brokerage you should not have an issue):

Travel Monitors

https://www.indiegogo.com/projects/trio-portable-dual-triple-screen-laptop-monitor

https://www.amazon.com/Pro-Portable-Dual-Screen-Dual-Side-Lightweight/dp/B07V465K93

The World's Best Day Trade Chair Lol - Google It

https://www.amazon.com/Herman-Miller-Embody-Chair-Graphite/dp/B07SXMXDWD

Other Peoples' Setups

https://www.tradingacademy.com/financial-education-center/trading-desk-showcase.aspx

Complete Setup

https://www.amazon.com/Computer-Dell-Precision-T5500-Workstation/dp/B016CHGPP8

Mounts

https://www.amazon.com/Stand-Steady-ErgoTech-Converter-Designers/dp/B078NC2NLB

https://www.amazon.com/KRI%C3%8BGER-KL4327N-Articulating-Universal-Computer/dp/B078RSQG5Y

Mountable Screens

https://www.amazon.com/HP-23-8-inch-Adjustment-Speakers-VH240a/dp/B072M34RQC

https://www.amazon.com/Dell-UltraSharp-U2414H-Screen-Monitor/dp/B00GTV05XG

Desktop

https://www.amazon.com/Dell-XPS-8930-Tower-Desktop/dp/B07WDSGD1J

Congratulations you are on the path to becoming an incredible trader in the markets and we know you have what it takes to profit from the market. You worked hard to understand these concepts and paid to have the information you’ve acquired. It is important to recognize that the skills you now possess are of immense value.

You literally have a way to login to your account on your computer, laptop, or tablet; analyze the markets and create your own wealth from the stock market. You can be anywhere in the world and earn income. This is odd to say but you should consider who you share stories of your wins with. Some will believe you when you tell them you’ve made what they make in a whole month in a day others will doubt you or even worse mock you.

In all honesty though it is important to know this one thing. It is easier to pull someone down than it is to pull someone up to your level. Value the knowledge you have and be careful the people you attempt to pull up in life aren’t placing an equal effort in pulling you down.

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You can benefit and so will the person you are wanting to help.

Consider instead to Partner With Us

Congratulations on completing Gain the Power of Consistent Income With Strangles course. We are so excited that you took the time to equip yourself with the foundation necessary to becoming a successful trader in the stock market.

We wanted to take this time to let you know we care about your trade journey and are committed to providing the best course available to our students so always check back to review the course and check for any updates or changes.

Day Trade Secret Facebook Group

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