Fearless Weekly Options Trading | 0 Stress | For Working People | English Video

Introduction

This tutorial guides you through a high-probability weekly options trading strategy designed for busy individuals looking to earn passive income without excessive stress. The strategy boasts a win rate of over 90%, making it an appealing option for those who may not have the time to constantly monitor the markets.

Step 1: Understanding the Strategy Basics

• Concept: This options trading strategy involves selling two lots in the first week and buying one lot in the following week.
• Premiums: Aim for a selling premium of around 10 and a buying premium of approximately 12.
• Risk Awareness: Always be mindful that all trading strategies carry risk. Proper training and understanding of options can help mitigate these risks.

Step 2: Executing the Trade

1. Sell Two Lots: In the first week, sell two options (calls and puts).
2. Buy One Lot: In the second week, purchase one option (call or put).
3. Monitor Premiums: Keep track of the premiums; you can adjust the selling and buying premiums if necessary, but aim to stick close to 10 for selling and 12 for buying.

Step 3: Assessing Profit and Loss Scenarios

• Market in Range:

  • If the market remains stable, the first week’s premium will drop to zero, and you can expect around 1% profit.

• Market Goes Up:

  • If the market rises by 300 points, the sold calls will expire worthless, and the bought calls will increase in value, leading to a potential profit of 1.7% or more.

• Market Goes Down:

  • If the market drops by 600 points, the sold calls will expire worthless as well, and the bought puts will gain significantly in value, also leading to profits around 1.5% to 2%.

Step 4: Risk Management Techniques

• Hedging:

  • In case of significant market movements, consider buying an additional out-of-the-money option as a hedge. You can enter this position at 3:25 PM and close it the next day if necessary.

• Avoid Holding Until Expiry:

  • Do not let the options expire worthless. Aim to close positions early to secure profits.

• Watch Volatility:

  • Keep an eye on the volatility index (VIX). A decrease in volatility can negatively impact your strategy.

Step 5: Making Adjustments

• Keeping Capital in Check:

  • Always adjust trades without needing additional capital. If a trade goes wrong, assess what went wrong and make adjustments accordingly.

• Learn from Mistakes:

  • If results are not as expected, revisit your rules and ensure you are fully informed about options trading before entering new trades.

Conclusion

This options trading strategy is designed to provide a safe and effective way for busy individuals to generate passive income with minimal stress. Key elements include understanding the trade structure, managing risk effectively, and making necessary adjustments based on market conditions. For those interested in refining their approach and gaining deeper insights, consider connecting with experienced traders or resources to enhance your knowledge and skills in options trading.