Sell Plump, Rapidly Decaying Weekly Options Premium for Profit Capturing Opportunities 4 Times a Month or More…
Weekly options can be a premium seller’s dream scenario! Plump juicy premiums that decay FAST! You only need to mind positions for a week, usually less. It’s almost cash flow heaven….
That said, we still have to deal with the variables and nature of the stock market, which can be very much influenced by news surprises. Sometimes news surprises in our favor and other against us. When we are trading naked options and we get a surprised against us – ouch that can hurt!
Here is a sample performance record for PremiumPILLAGE, selling naked calls and naked puts on weekly options:
To get a perspective: Let’s say per 10 contracts we make $1500 on a Win and lose $1500 on a Loss.
STRATEGY 1: CLF May through Oct. 2012:
WWWWLWWWWWWLWWWWWLWWLWWWWLW = 40 W and 8L
On 10 Contracts
NET Profit = $48,000
20 Contracts NET Profit = $96,000
50 Contracts NET Profit = $240,000
100 Contracts NET Profit = $480,000