Lecture Notes: Retiring with a Simple Options Strategy

Introduction

• Presenter shares how he retired his wife using one simple options strategy.
• Strategy makes an average of $4,000 per month.
• Taught over 10,000 traders to supplement or replace their income.

Key Components of the Strategy

• Proof of Returns: Presenter shows broker returns, indicating $8,500 earned year-to-date despite market crashes.
• Strategy Overview:
  • Strangle strategy with a 97% win rate.
  • Betting that a stock remains between two levels, earning money if it does.
  • More reliable than traditional stock trading.

Strangle Strategy Explained

• Mechanism:
  • Sell a put below the current stock price.
  • Sell a call above the current stock price.
  • Profit if stock remains between the two levels.
• Advantages:
  • Profit from stock going up, down, or sideways.
  • High win rate due to flexibility.

Strategy Execution

• Structure:
  • Skewed strangle: Calls higher, puts lower, anticipating uptrends.
  • Sell a call at 5 delta, put at 10 delta.
  • Trade duration: 90-120 DTE (Days to Expiration), preferably 120.
• Entry Points:
  • Ideal in sideways markets, also works in bullish markets.
  • Enter trades weekly, e.g., every Wednesday.

Exit Strategy

• Take-Profit and Stop-Loss:
  • Target a 25% take-profit to minimize open trades and risk.
  • 300% stop-loss to manage losses and maintain a high win rate.

Risk Management

• Tools:
  • Use ETFs for stability and liquidity.
  • Avoid volatile stocks like Tesla.
• Ballinger Band Strategy:
  • Use Bollinger Bands to identify overextended market conditions.
  • Adjust trades to reduce risk based on band levels.
  • Implement hedges using puts during market volatility.

Automation

• Options Autotrader:
  • Software automating trades based on preset rules.
  • Automates execution, reducing emotional interference.

Conclusion

• Strategy allowed the presenter to retire his wife and plan extended travels.
• Encourages viewers to implement the strategy for financial gains and personal freedom.