Sell Credit Spreads on Weekly Options Systematically for Extra Cash Flow
Weekly options system CreditSNIPE provides for you a systematic approach for placing credit spreads on weekly options.
This system gives you a potential 4 times a month opportunity to collect rapidly decaying weekly options premium.
There are two approaches to placing credit spreads on weekly options: one is to place out of the money credit spreads the pluck off premium the other is to place credit spreads in the way of a breaking micro-swing move or price bounce.
Weekly options offer us unique opportunities to capture plump, rapidly decaying options premium. Credit spreads offer us an opportunity to collect premium without having to come up with a lot of cash for margin. We will look to pin point opportunity for the sake of maximum profit while avoiding excessive risk and bad risk to reward ratios.
This is a home study course that will teach you the system: the entries the stop loss, the exits, the strategies, pitfalls to avoid and money management position sizing…. all of the information you need to trade the system correctly.
Sample Track Record. Actual profit results will vary depending on where you place your spreads and the width between the strikes of your spreads, the time held for decay of your spreads (we play directional movement on spreads and will take profit before Friday if price moves past spread strikes in our favor – decay happens rapidly so we often get much of the decay as well). Hence we will identify a track record in terms of the next strike In The Money spreads.
STRATEGY 1: CLF May through Oct. 2012:
= 40 W and 8 L
So let’s say you made $2000 each win and lost $2000 on each loss = Net Cash Flow is $64,000 from Strategy 1 for 6 months trading
STRATEGY 2: CLF May through Oct. 2012 which is stacked, in combination with strategy 1:
WLWWWWWLWWWWWLWLWWWWWWWWWLLLWWWWLWLWWWWLWLWWWWLLWWWWLWW = 40W 14 L
So let’s say you made $2000 each win and lost $2000 on each loss = Net Cash Flow is $52,000 from Strategy 1 for 6 months trading
STRATEGY 3: ‘Set and Forget’: CLF 2012 Jan – Oct
So let’s say you made $2000 each win and lost $2000 on each loss = Net Cash Flow is $50,000 from Strategy 1 for 6 months trading
So by simply running all three strategies systematically with the results produced in these examples we are looking at $166,000.00 profit risking $2000 per trade.
- Yes you could kinda say you could have made $166,000 off of just $2000 SINCE the above examples start off with a win and then mostly winning with not too many drawdowns. So you started making cash profit to buffer losses that would come as moved a lont
- Yes this would imply using the same trading size with an ATM spread where you risk to reward was close to 1:1
- This of course is a historical example. It doesn’t mean you’ll get the same thing in the future. You could do better or not as good (for those of you who are new to trading)
So wouldn’t you say the possibility of making $166,000 off of $2000 is worth $2997? Of course it is. It’s worth a lot more. Ever try buying a franchise?! Yikes. In my opinion, our systems are infinitely better investments!
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