if you want to retire then steal this strategy this is the exact strategy that I'm using to make about $5,000 every single month and that's help me retire my wife from being a public school teacher I've also over 600 people use a strategy just like this to generate monthly income and I want to show you exactly how to do it in this video So the plan for this video is simple I'm going to show you what options are if you're new to them I'm going to then explain what options selling is then we're going into the core strategy that I use to generate reliable monthly income we're going to talk about how to trade it by looking at the chart where they're going to show you how to enter it on the broker so that by the time you walk away from this video you'll actually be able to place this trade yourself and understand it and then I'll also show you how to manage risk there is risk when it comes to trading the strategy and then you need to know how to manage it efficiently and then from there I'm going to show you how to automate it so that you can not only have the passive income but also the free time as well so let's dive into part number one which is understanding what options are so let me make my face small and let's get this party started so here we go looking into it options are quite simple it's essentially betting on what a stock will do so just like when you're sports betting you bet hey I bet this football player will run so many yards or I bet this person will hit a whole run or whatever it is you're betting on a Stock's performance you're saying hey I think the stock um um will stay above this level or I think the stock will reach this level that's what options are and so there's a lot of different options we have call options and we have put options each one does something different so I'm going to explain each one in the context to what we'll be using for this strategy so if you buy a call option you make money when the stock goes up AKA you're betting that the stock goes higher if you buy a put option you're making money when the stock Goes Down AKA you're betting the stock goes lower I'm going to put a plus button because we're buying now the inverse happens to we sell if I sell a CO I make money when the stock Goes Down And if I sell a put I make money when the put when the stock goes up now for the sake of this video what we are discussing is we are discussing opt option selling so I'm going to get into that what is option selling well option selling is this where we sell the contract so if we sell a call we're betting the stock goes down if we sell a put we're betting the stock goes up so let's pretend like we have a stock like this and it's trading here well if I sell a put down here I'm saying hey I bet the stock will stay above this level now this gives me a super high win rate and it's super profitable why well because look the Stock's trading here that means that if the market goes up I make money with this trade if the market goes sideways I make money with this trade if the market goes down but stays about my level I make money with this trade and if the market drops crazy then I lose money at expiration and so that's how selling puts works is I can make money as long as it stays Above This level and I can make sure this level is 10 to 20% uh um 10 the B I think 10 to 20% below the current price you give me a huge room for margin and so that's how you're able to do this now that's for a put if I'm doing a Co and the Stock's trading down I can bet the stock will stay below this level by selling a coal and so the stock goes down I make money the stock goes sideways I make money if the stock goes up but stays below my level I make money as well and so this is what selling put looks like and this is what selling a call looks like now what I'm going to get into now that you know the basics of what each one is I'll dive into these specifics when we get to the broker but let's talk about the one core strategy okay what exactly is the strategy that I am using felt hundreds of others use it's called a strangle strategy and so a Strang goal uses both the short putut and the short call so let's say we have a stock trading like this right and what we do is we're betting on both the bottom and the top side so you can see here I'm going to put a level up here and put a level down here and so I'm betting the stock stays Above This level and it stays below this level so as long as the stock stays between these levels whether it goes up a bit or down a bit or sideways whatever as long as it stays between these levels I make money right I make all the money from this contract and I make all the money from this contract and so now this is what a strangle is because you're strangling or like you know you jump on a force and like Strat like you're straddling it kind of you're strangling you know putting in a headlock kind of but you're strangling the stock price and so that's what a strangle is and so if we're going to understand this trade a bit better let's dive into the next step of this video which is showing you how to trade it on a chart so a strangle takes advantage of playing a non-directional trade so if you're looking to trade strangle you're looking for uh slow bullish markets so a stock that is slowly Mo uh moving higher you're looking for sideways market so stocks that stay sideways and you're also looking for slow bearish markets so stocks that slowly move down these are the markets that it works best in and this is how I structure my strangle strategy to make sure that it does well so here are the conditions that you can actually go trade this what we're looking at here is we're looking to trade it on a highly liquid asset that has a lot of of a lot of tracking stocks so what I'm saying is we're looking at an ETF okay we're looking at something that tracks a lot of different stocks so that it's very Diversified and so the way that we do this is we can do this on spy because again that tracks the S the SMP 500 we can try this on SPX or my personal favorite is doing it on Futures options Futures like es or Mees depending on your account size es gives you an insane return on your money which I'll highlight here when we get to the broker section but these are the best assets to do it on now every option has an expiration date so I like to go between 90 and 120 d uh DTE I'll explain why these are the times a bit more when we talk about risk but 120 to 90 DTE helps limit my risk dramatically um next how how do I pick the strike price like how do I know which put to sell and which call to sell well I like to strangle I I I like to structure my strangle in a way that gives you more upside room right because we're looking at the overall Market in general the overall market trends higher and so I want to make sure I have more room up here and left room down here that way it can continue to run higher without it hitting my levels if I set the same levels then I'll probably hit the top side because the market tends to trade up so we need to adjust for that and so what I do is I do a 10 d put which again is is a very far out of the money put so I have a really high win rate because I'm far away from the stock and then for my call I do a five Delta call this way I have more room to the upside so I can let that natural upward drift of the market not affect me massively then again how do I manage this trade I manage it at a 25% take profit so once I have a 25% profit I close it and then I manage it at a 300% stoploss so this is how the trade is managed very simple but it's a great trade I might be saying oh how do I know that well here's the back test of it okay here is on svy since 2013 to now 20 20124 say bait close to now December 5th of of 2024 you can see here 25% take profit 300% stop loss 10 Delta 5 Delta 90 DTE you can see right here very consistent very stable uptrending strategy you can see here I win about $100 per trade lose about a th000 and I had a 97% win rate so this is how amazing it is if you're looking for a stable consistent strategy for monthly income this has worked for me it's worked for others and the back test also shows it well does not mean you're guaranteed performance because can't do that if someone is guaranteed performance you should run the other way but I am saying this tends to perform very well and so this is the back test and these are the rules now how do we actually put this in a broker and trade this so that is the next part of the video which we're getting into is how to trade this on a broker so let's dive into the broker and let's actually do this you see here that a strangle trade actually placed for me using the the the automation just now that I'll explain later but you can see here how this St is has already made me $724 by using the strategy which is awesome because it's basically been handsfree today which cool how do how do we do this in the broker because I'll show you the automation later we do this by basically taking the exact rules that we discussed here and just plugging it into the broker okay so if we go to to the broker let's go to one of the assets we mentioned for this instance I'm going to do by and then we're just going to follow what we said again 90 to 120 days out in the future so we look at these days we have 108 days out 122 days out 92 days out for this video Let's just pick the 92 days that's closest to 90 perfect now we're going to make sure that our broker is showing Delta so we can come in here and select Delta as I select Delta I'll be able to see that and so what I want to do is I want to find Delta of 10 on the right side cuz the right side of for puts so the 10 Delta here on this side and I'm going to find the one again volume I like to change this to open interest and find the one that has the largest open interest so about right here 10 Delta so I'm going to sell this one now the call sides on the left side so I'm going to look for a five Delta on this side um so I can you know do make that strangle on both sides here's a five Delta there's only one of them so I'll take this one okay just like that this is the strangle trade right we have one call one put selling both you can see here my probability of profit is 83% so I just let this trade expire I'll make about an 83% return however since I have a takeprofit on this trade that then boost my win rate up to about 97% like you saw on the back test right here we can see buying power takes about $6,000 to put on this trade I'm going to make about $385 however that's not my actual profit because 385 needs to be multiplied by 0.25 to give me my actual profit since I do a 25% take profit so 25% of 385 is $96 so I'll make a $96 profit when my takeprofit is hit and then I'll lose about 3x this so about $1,000 or so when I lose and that's equivalent to what we saw on the back test so again this is what we're looking at gives me about a 97% win rate and runs very consistently however this is done on an ETF on spy but again if we do this on a Futures option we can get insane leverage right because like I mentioned we're making about $90 96 let's just say $100 for easy map $100 on this trade but we need to put up $6,000 so that means I'm putting up 6,000 I'm making 100 and that means my return is about a 1.7% return okay so making about 1.7% return on my money now the fact that I'm only in this trade for 17 days is insane I make 1.7% return on my money in 17 days and two weeks this is a great strategy now if you do this on Futures so again if you have a larger account you can use es you have a smaller account you can use Mees um because that'll be a tenth of the price but for ES it set the exact same trade you can see here we have the 92- day Mark we'll select the 10 Delta trade oops it's buying it sell the 10 Delta and then we will sell the five Delta on the co side just like this now you can see here we're putting up roughly the same amount of money $6,000 but our Max profit is 2,000 so again if 2,000 is our Max profit but we're taking 25% of it that means this trade can make me $500 per trade all right so I'm going to make $500 on this trade and I'm putting up 6,000 now I'm making basically an 8% return on my money so in 2 weeks I get to make an 8% return on my money with a 97% win rate 97% chance of this happening that's why the strategy is amazing it's consistent and it's reliable and so again now we know okay now that this is a great strategy we know how to set it up in the broker and do it how do we part three of this is how do we manage risk correctly because that is essential okay so there's some things to consider when managing risk with options okay number one is we have Market risk okay as mentioned before if the market is sideways slowly moving up or slowly moving down this is a great strategy whoever starts moving quickly if we have a market crash we could lose thousands of dollars so what's the best way to do this okay to have a a a a an indicator that we use to warn us of a market crash or to warn us of quick moves so again there's a lot of in there's a lot of indicators we can do we can also Trend trade SO trading with the trend meaning that we chart the highs lows we only trade when we're inside that that that that range or we're trending so again those are two ways to avoid Market risk number two we have volatility risk okay when we're selling options we are really subject to volatility risk because if volatility goes up our option prices go up which means we have a lot of losses and so we definitely don't want to have that all the time and so how do we control volatil uh volatility risk we do that by changing our trading size or or how many trades we have on to base on the risk in the market so vix is what we look at to determine the Vol the volatility index and So based on vix what we're doing here is it vix is lower meaning the risk is higher we'll put on less trade so let's say for example if this is under 15 maybe we'll only use 20% of our account to to trade with if vix is over 15 maybe we'll use something like 30 or 40% of our account to trade with so that way depending on the risk in the market we're sizing our trading accordingly another way to reduce vola volatility risk is to go longer DTE I just say longer DTE and that's exactly why we pick 90 to 120 DTE why because the longer the further out you go the higher your win rate because you go further away from from the stock the more credit more profit that you get to bring in and the less volatility risk because there's more time for the trade to work out in your favor and so these are some ways that we reduce these risk in the market these are some things to consider all right so that's exactly how I do it now for the part that you guys are going to enjoy most is how do we automate this okay now let's do it manually how do we automated to use our free time or get our free time back so we're not staring at the screen and managing these trades all the time well there's a ton of automation tools and softwares out there my favorite is is the options Auto Trader which I have a 30-day trial link to down below but again super simple let me show you just click on create an auto trader and you plug in all the rules I just gave you okay so you click on create an auto trader you pick the strategy you want to do for this inst since we're doing a strangles trade we're doing it on again you hopefully pick up Futures asset because Futures do a lot better I know if you have a larger account do es smaller account Mees so let's just say es Yes again we do 90 DTE we have we sell a a put that's at the uh 101 Delta so we got that and then we sell a call the five Delta so I'll change this to five Delta I just plug in all the rules for as as I trade it basically if you don't know what an automation tool is you you connect your broker you give it the rules to trade with and it executes your rules for you so right now I'm saying hey this is how I want my trade to be structured then I'm saying when I want when I want to enter the trades I can enter on Wednesdays in the morning again I my accounts larger so I do two trades a week but again you can enter whenever you want then again our take profit is 20 5% or stop loss is 300% and that's how this trade gets managed and then how much money do I want this bot to trade with well again you should trade with no more than 30% of your account depending on where vixs is so again if I have a $100,000 account then I'll use about $30,000 for this boot now remember how I said we want to make sure to manage risk that's the most important part of trading right well right here I can enable this and this will automatically size my positioning based on the risk in the market based on vix so if vix is higher which mean my risk is lower all use all my money if vix is lower meaning my risk is higher I'll then use less money so that I'm in less trades and things like that now if I also want to get out before crashes we have a little Safeguard math indicator here that you can use to prevent that by enabling this so just like that I removed a lot of risk from these trades again looks like I don't have enough money to put on these trades I'll do 20,000 here for this bot and I should be perfect now you can see that that is how the bot is structured again if we go into my Live account here that you saw on tast trade right here you'll be able to see that this is this this is the bot that's running for me this is a new account that just started running this bot at the beginning of this month so it's only it's it's only been running for about three weeks and it's already and has already made me over $1,000 you can see here the trade that it literally just put on today you can see here the trade and this trade is going to make me about $581 by the time this trade closes you can see this one's close to my take profit as well and this trade already closed for a profit as well so just like that it's managing my entries my exits everything for me generating the profit and seeing the consistent returns that we see from this back test all right guys whether you automated or not this is the ultimate retirement strategy so make sure to steal this and use it now if you want to actually start automating as well you can click the uh link down below to start your 38 trial