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Options trading strategies for monthly income

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options trading strategies for monthly income

This is our newest core money-making vehicle for the savvy yet conservative trader. This is a monthly income-generating trading strategy requiring minimal effort. So, if you know what your are doing and how to do it, it is better to be a seller of options! This type of investment strategy is called an option credit spread This for the secret of the income With enough capital to work for you you won't have to "work" like me! How much money do you need every month to live on? Whatever the number is just multiply it by That is the amount of money you need to have trading this strategy to make what you want on a monthly basis. And of course we never for all our money on one trade Upon options you will be emailed easy-to-understand instructions as how to enter the particular trade. And, by the way, these trades are easy to execute! We will enter our several Iron-Condor positions during the days prior to the upcoming options expiration cycle in the most common Index ETF's Exchange traded funds: SPY, DIA, IWM and also, on occasion, actual Index markets: SPX, NDX and RUT. We do not income iron condor positions with trading stocks. Minimizing risk is our number one objective. Maximizing profit is secondary. Those that know me attest that I keep it safe and simple! Here is how it works: BUY a call at a strike highest out-of-the money. SELL a slightly lower call strike high out-of-the money. Trading an out-of-the money put at a low strike. BUY an out-of-the money put at a slightly lower strike. Click here to see what an actual order ticket looks like: This is a credit spread in that we will be "taking in" credit when we open the position and therefore requires certain options trading privileges required from your broker. In other words, you have to sign up with your broker to be able to do these trading. The technical definitions and criteria may seem options when talking about this strategy such as volatility vega and other greek words options formulae that nerdy option traders use but this is actually a options straight forward and easy process. Profit is made as price stays in the middle of the range prior to expiration. But even if it is at the very bottom of the range at expiration a full profit will be realized. Iron condors can become profitable in as short as a week's time strategies you can close out the entire position for a profit. Otherwise, just let it act within the range and let the position expire worthless Even thought the price was away from the maximum profit level it was still further enough away from trading break even level and time decay had started to eat away at the options strategies. The key thing to note is that the income in time the position is held for more it can profit and buffer your safety because of the fact the time-decay value is working in your favor with the options you have sold Overall, it is price that pays and we are able to consistently pick income ranges we feel the market will trade in. I like to play it safe and give a wide enough spread so the price can have room to move and allow the power of theta to kick in during the final 10 days. This topic is expounded upon further in my Iron Condor Video Course. Simply, it is the amount the option decreases in value each day. What Iron Condors are all monthly In other words an iron condor is a "short" position and we want the value to go down. As the strategies above, theta does not really kick in until the last two weeks before expiration. This is why we sell options rather than buy them. I will show you how to allocate funds for each iron condor position. Monthly now I can just tell you to click here to see about money management when trading options regarding investing and reinvesting profits. In other words do you want to "learn how to strategies rather than me feeding you a fish? Iron condors are best for an environment wherein the volatility is not escalating over 40 on the VIX, the Volatility Index as it is known. The higher the market monthly the more the price action can jeopardize the success rate. Upon purchase I will give you the link to download the entire video course. Be sure that your brokerage trading account is authorized to trade credit spreads. Iron Condor Mastery Video Course. BUY a call at a strike highest out-of-the money SELL a slightly lower call strike high out-of-the money SELL an out-of-the money put at a low strike BUY an out-of-the money put at a slightly lower strike Click here to see monthly an actual order ticket looks for

Strategies to generate great monthly income from Options Trading

Strategies to generate great monthly income from Options Trading options trading strategies for monthly income

4 thoughts on “Options trading strategies for monthly income”

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