i want to show you exactly how I retired my wife using one simple option strategy this is the same strategy that's making me $4,000 a month on average and the same strategy that I taught over $10,000 traders who are now supplementing and some even fully replacing their 9 to5 income so in this video I'm going to walk you through num number one the proof so you can actually see broker returns that I'm making this so it's not just some fluff thing right I'll show you the one simple str the strategy which includes the back test how we enter the entry rules the exit rules how we plug it into a broker so that you can walk away from this video actually being able to do it I'll show you the risk management strategy so that even during a market crash you can use this to make money and we'll show you how to automate the entire thing so that it can be passive so that you're no longer stuck stuck to the screen because again if you do this correctly you might be stuck to the screen so we want to automate that as well so let's dive into the video number one proof of broker returns let me make my face smaller so we have more room for action here we go if I go to my broker if I refresh the page here give it a second to load and then I go to the date filter and go year to date so far this year I've used this strategy to make $8,500 now we're in the midst of a very big crash i was closer to a $12,000,000 profit which would put me around 4,000 a month but again we're about 3,500 a month right now just based on how far it's been so far throughout the year which is pretty good and so again I want to show you exactly what this strategy is and it's a strangle strategy i'll walk you through it very simply if you don't know what it is but looking at the back test you can see here that the performance is very consistent and very profitable over time you can see here that we just have a really good win rate about a 97% win rate very consistent very reliable and something we can use day in and day out and make it a reliable source of income and so for those who don't know what the string shrinking is I just showed you the back test but let's walk through these specifics okay let's say you have a stock okay this stock is just minding its own business and trending up which stocks do most of the time a strangle sells a put down here and sells a call up here if you don't know what that means it means that this level I'm betting the stock stays above this level which means as long as the stock stays above this level I make money so the stock goes up I make money the stock goes sideways I make money the stock goes down but still stays above my level I make money this is so much better than stocks which only makes money if it goes up so that's from the selling put but I also sell a call which means as long as the market stays below this level I make money and this means it can go down and I'll make money you can go sideways and I'll make money can go up as long as it stays below my level and I'll make money so when we combine these two things together it's called a strangle and I profit when the market stays between these two levels and so that's what a strangle is it can go sideways and I'll make money it can go up but stay below my level and make money it can go down but stay above my level and I'll make money so in this way I can make money in so many different ways compared to a normal stock trader so this is what gives me the really high win rate so that's what the strangle strat strategy is i'm going to show you how to actually enter it in the rules and then I'll show you it in the broker so if we're diving in here a strangle the way that I do it is I like to what's it called skew my strangle which means I like to to change where my put and calls are so you can see here if the stock is trending up which more times than not stocks move higher stocks are in an uptrend especially when you're trading and looking at the overall market like the S&P 500 it tends to trend higher and if that's the case then we should leave more room to the upside and less room to the downside so our call should be higher and our put should be a bit lower why because it keeps going up we don't want this call to level to get hit because if it does then we lose so we want to push our call higher and have our put a bit lower so that we can use this to make money so the way that I structure this trade is like this i sell one call at the five delta level this pushes it out very far which I'll show you here in a second on the broker and then I sell one put at the 10 delta this one's a bit higher a bit closer to the stock so I can create more income more premium but also it's still on the safer side because market tend markets tended to trend higher so this is how you structure the trade again 90 to 120 DTE t is typically how far out you go for this trade i'll show you what this looks like here in a broker so you can pick the right contracts here in a second but I tend to lead more towards 120 so this is how the trade is structured next how do we enter it how how do we know when to trade the ideal market for a strangle is during a sideways market so again sideways meaning that we're stuck in between a high and a low because we're bouncing up up and down between two levels this is the ideal market but I'll do this in almost any almost any market again any bullish markets and sideways markets again slower bullish ideally but these are the markets that I trade it in and when I do I enter on a weekly basis so for instance I'll do one trade a week so for me this looks like putting on a trade every single Wednesday so that is how we do entries ideally based on market and then do it on a consistent frequency based on how much money that you have to use in your account so that's structure that's entry now for exits what we do is we target or at least what I target is a 25% take-profit now you might be wondering why so little i do it a 25% take profit because then I can close the trade faster which means I have less total trades open so if we're putting on a trade once a week and if we close it at 50% profit that means I could have what like four or five trades open at a time which means I have four or five trades that could potentially bring me a lot of risk if the market turns around but by taking profit faster I'm able to actually close these trades faster and now only have two or three trades open at a time to reduce my risk and it also gets me in and out of trades faster so it's more capital efficient anyways I also like to do a stop-loss in case something goes wrong a 300% stop-loss on this trade and this is what gets me around my 97% win rate so this is how you structure the trade this is how you enter and this is how you exit now let me show you exactly what that looks like on the broker my bad if I go to the broker and I go to trade again you ideally want to do this on ES or I should say futures options the reason being because you'll get way greater leverage if you don't have access to futures off no worries this works just as well on SPY Apple things like that ideally you want to stick to ETFs though because those are just more consistent and more stable right because a strangle profits between two levels so if you have a very volatile stock like Tesla that moves like crazy might not be the best so stick to ETFs they're more higher liquid anyways so what I do is again this is the the options chain i look for the days that's closest to 120 so you can see here 122 so I'll click that on the right side are my puts and I typically start with the put so again looking at my delta I'm looking for a 10 delta so that is minus.10 is what a 10 delta is 010 delta so right here I'm going to sell this so I'm going to sell a put at the 10 delta level next I'm going to go to the other side of the chart which is the coal side i'm going to do a five delta so you see here delta 7 delta 5 i'm going to sell the five delta now right now this is going to bring in about a $54 credit which translates into about a $2,738 return you can see your max profit about $2,732 now that is not the full profit right because if I'm going to make that much what I'm really doing is I'm having a 25% take profit so only going to make 25% of this amount which gives me a return of about $700 but we don't really care how much money we're making we care about being efficient with our money so we can actually make a good return and so from that if we look at the buying power it takes me or I should say I have to put up $5,700 to enter this trade so I'm going to divide my $700 profit by $5,700 and this gives me a 12% return on my money this is great right i get to close a trade every two weeks and in a matter of two weeks I'm making a 12% return on my money that's insane that's insanely good right and again this is 100 times better than bank interest 100 times better than a bond or a loan or something like that obviously there is more risk than other types of assets but still it gives me about a 77% win rate and when I take profit at 25% my win rate boosts up higher to 90 95% that is why the trade is so consistent because we're closing early and we're going very far out wide and it just results in a great return so that is what it looks like how we structure the trade how we enter how to place the trade on the broker and so now we need to dive into the next part which is how do we handle risk because yes the upside is cool but we always need to consider the downside especially when it's an income stream commend income flows that we want to rely on and so if we're doing that from a risk management perspective I actually just wrote a book about this called Never Worry About Volatility Again it's on Amazon for 20 bucks but because I love you guys on YouTube I'm giving you a free instant download in the description down below i don't know how long it will last but I want to show you one of my favorite concepts from the book again there's a lot of them and if you see here in this book there's actually a checklist of everything you can do to massively reduce your risk but my favorite one here is the Ballingerband strategy so if I come down here strate strategy number two is the Ballinger band approach so again it basically shows you that you can avoid entering new trades when the market is below or above the band this is used to identify overextended moves this allows me to get out before the market crashes now let me show you exactly what this means again there's a video training on that inside the book with more detail but here's how we do it so if we're on a chart again whether it's Trading View or your broker whatever go to indicators add the Ballinger band like that now this is what most people use it like but what I want to encourage you is to go into the settings and change the length from 20 to 200 and just like that it's going to show you a more accurate understanding of what's happening in the market and what do I mean by that the blue highlighted zone between the green and the red lines is going to show us where the market on average should be trading what is healthy and normal for the market a standard de a standard deviation approach to the market now what we want to know is that when the market breaks out above these levels or gets close to the red line that is a sign that the market is overextended and it's going to pull back you can see here it pulled back it pulled back we held around this red line for a while we pull back right this is a sign that we're actually going to pull back and so what do we do in these red areas if we're trading a strangle or really any option selling strategy and we get into these red zones what we're going to do is we're going to slowly close out our positions so we can take risk off the table what we can also do is we can purchase hedges so we can do things like buying a put a buying a put would make money as the market drops which has helped us profit from the downside too so this is how we can avoid a lot of the risks with the strangle strategy is just by understanding when is the market overextended and getting out before the market decides to pull back against us because when it pulls back we'll see a lot of losses VIX willful spike that's just a lot of a lot of issues we don't want to deal with so if you want to learn more about the tactics that you can use to decrease your volatility risk check out the free book down below includes the checklist and everything you need to know now moving on into the next step here we need to be able to automate this strategy so that we don't have to rely on it right because if we're checking for risk management sections or entering of our self emotions are going to get involved we're going to mess up up the trade and we're not going to have the win rate and consistency that we're looking for and so there are a lot of different strata a lot of different softwares that you can use but one of the best ones and again I'm biased because I made the platform it's called the options autotrader and the reason why it's the best because it's the only platform that allows you to automate futures options trades and so again when you use that tool you just plug in the exact rules that I gave you here you say "Hey every single Wednesday I want to sell a call at five delta i want to sell a put at 10 delta and then I want to do it at 120 DTE i want to enter when this happens once a week and I want to exit at a 25% take profit and a 300% stop loss you do that and now it fully automates your entire trading and so that's the way to do it anyway guys that is how I basically was able to retire my wife from being a full-time public school teacher and now how we're able to actually go travel her school year is ending in a few months and we're going to go spend two months in California because that's where her family is and it's going to be great is going to be awesome and I'm glad that I'm able to give that to her anyways guys I hope you put this into action i know we can probably do some great stuff for you if you do please put a comment down below i'd love to hear from you anyways hope to see you guys in