My mentor, Jeff Bishop, is considered a genius according to the rigorous standards held by MENSA.
He’s able to use his super-computer brain to download information about the options market and absolutely crush it…
And for the longest time I thought you had to be some sort of math whiz to make it as an options trader…
After all, the options pricing formula is awfully intimidating:
But you know what?
I’ve figured out a way to eliminate the math, and even make options trading as easy as stock trading… but even better.
With stocks there is only one way to make money:
If you’re long then you need the stock to go up in price and if you’re short you need the stock to drop.
However, my Weekly Windfalls options strategy allows me three different ways to win on a trade.
And since launching the service back in mid-July, I’ve made six-figures in profits by following a simple system.
Furthermore, I’ve been able to eliminate the three biggest factors that cause people to lose money with options:
Lack of liquidity
Not understanding the role that volatility plays in options
As well as, how time decay impacts an options position
I’m now going to show you how you can too.
Unlike stocks, options are influenced by other factors outside of the price movements of the underlying stock.
But my strengths are in spotting catalysts, patterns, and discovering value.
So how am I able to avoid the complex math and still dramatically shift the odds in my favor?
More on that in a little bit. But first I want to talk to you about why I don’t buy options.
The Problem With Buying Options
When you buy an option, you are buying a wasting asset.
For example, check out what the options market is saying about Slack Technologies (WORK):
The $33 calls expiring on September 20th are valued at $1
Now, in order for you to make money on these long call options you would need the stock to rise above $34 on the expiration date (the strike price plus the cost of the option).
That means you would need the stock to rise 18.7% in less than three weeks just to break-even.
Now, I’m not saying it can’t happen… but why take that type of risk when there are easier ways to make money with options, as you’ll see soon.
For starters, when you buy an option, you are long volatility. And if you are not an expert on implied volatility, then you don’t know if these options are rich, cheap, or priced just right.
Also, when you buy an option, time decay works against you. And since the $33 calls are out-of-the-money, time is not on the side of these options, as they are set to expire worthless if the stock
doesn’t move by 18.7% in less than three weeks.
The odds are clearly stacked against the buyer of these options.
But instead of trying to swim upstream… I’ve figured out a way to flow with the current… and turn the options market into my personal ATM machine.
How the Weekly Windfalls Strategy Works:
Now, if buying options is risky, why not just take the opposite side of the trade?
Well that’s risky too. You see, when you sell a call option “naked” you are exposed to undefined risk.
For example, imagine being short the $33 calls, and WORK has blockbuster earnings or, someone like Microsoft or Google decides to buy the company at an inflated premium.
That could potentially blow out your account, depending on how leveraged you are.
Now, I don’t know about you, but I like to sleep peacefully. Having on trades that can potentially wipe me out doesn’t sit well with me at all… and that’s why I don’t sell options naked…
And that’s why I trade credit spreads.
So what’s a credit spread?
It involves the purchase of one option and the sale of another option in the same class and expiration but different strike prices. And since the option you are selling is more valuable than the one you are buying, you receive a credit for putting on the trade.
The strategy is designed to profit when the spreads between the two options narrows.
Examples of Weekly Windfalls Options Trades:
The image above is from a trade that I closed out for a five-figure profit in Beyond Meat (BYND).
What did I do?
I sold the $152.50 put 100 times and simultaneously bought the $150 put 100 times.
I collected a premium of about $1.30 per spread. Multiply that by 100 and that’s about $13k in options premium.
And in order to collect the full amount, I needed BYND to stay above $152.50 price range.
My risk on the trade was $2.50 minus the premium I collected ($1.30)… so about $1.20 or $12K.
The risk on these trades is always defined.
Now, most stock traders would balk at a trade that offered one to one risk vs. reward… but I’ll tell you why you shouldn’t think that way with this strategy.
Three Ways You Can Win With Weekly Windfalls
Since the spreads I am selling are out-of-the-money… time decay works in my favor.
Also, I have completely neutralized the role that volatility plays in the options too…That’s due to the put options I bought against my short options.
Furthermore, this trade allowed me three different ways to profit:
The stock price rises
The stock price stays range-bound
The stock price trades slightly lower
As you can see, this is how you can stack the odds in your favor.
And because I’m placing these trades on large-cap stocks, there is enough liquidity for anyone to copy and paste my trades and following along.
Best of all, there are several opportunities throughout the week to profit off these high-probability setups.
And while Weekly Windfalls is still a relatively new service… I’ve received so much positive feedback from clients that I’m convinced that anyone who trades should be following this program.
Despite it being short trading week due to the Labor Day holiday… you better believe that there will be plenty of opportunities to cash in on some Weekly Windfalls.
If you’re not a member of the service yet…