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Trading Options For Income - Weekly Options Strategy

Have you ever wondered if it’s possible to trade weekly options as income? I know many people have thought of using option trading as another source of revenue for them.

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Very few are successful but many explore and pursue the idea. Personally, I have been trading options for 15 years and weekly options for five years. I am of the opinion that if anybody wants to create an income, one can trade weekly options as income.

Why do I gravitate toward weekly options as a revenue source instead of monthly options?

Many investors have part divide up their portfolio and use part of it for what I would describe as an “income investment strategy.” This particular type of investing usually entails dividends coming back to the investor as cash. It is a fairly safe conservative investment.

When we are trying to create an income from an investment, I believe it’s important that the investment be safe and conservative. Well, I have found out that it is possible to trade it weekly options as income with a very conservative strategy.

This is why I think weekly options can be used this way—in fact there are investors I know that actually trade weekly options as income.

I often read outstanding claims on the Internet about profits that people make. Some of the claims say 100% in 10 minutes, some of them say $300 in three hours! Well, I’ve also learned that this is possible but one’s risk is also directly linked to the probability of one can make.

For me, I would never take the portion of my portfolio that I want to create income with inputted in the high risk trade.

If I could use baseball as a metaphor, investors like the boast about the home runs they’ve hit. I have learned that it is possible to trade weekly options as income if one learns to “perfect the bunt” and forget about trying to swing for a home run.

When I trade the system that I have developed for myself, I follow my signals. My goal is to make between (1%- 3%) each week if the trades are safe enough to make.

If I make a 1% trade, that means I make $1.00 for every $100 I invest. That does not seem like a lot of money at all, and the risk to profit ratio also seems quite small.

Actually it’s not. I have also learned that I can substitute losing for sitting out just by listening to my signals. When my signals tell me not to trade I have learned that eight out of 10 of the trades are still good.

Most option traders tend to take trades that they know they shouldn’t and often they look out and it works. This makes it easier for them to do the same thing again. They take the trade they shouldn’t and it comes back to bite them in the butt.

I have done this often but I have learned with the system that I’ve set up for myself not to do it— and it works. I have 23 straight months of winning trades because I listen to my signals and I don’t deviate from them.

Imagine only making 1% every week. If I only traded three quarters out of the year, that would net me (3 x 12)= 36% profit. How many of you would like to gross 36% each year as revenue?

When people hire me to teach them how to make money with weekly options, I teach them my system and walk through the process with them each week step-by-step making sure they understand not to deviate from the signals. Because of this, they are very profitable in their trading!

It is definitely possible to trade weekly options for income. For the option trader, it takes self-discipline and patience to follow the system that one set up and not deviate from it. In baseball, the bunt is not glamorous but if executed correctly it will get the batter on base. Isn’t that the purpose of the game?

After the same manner, making a little bit each week when you trade weekly options as income is not glamorous, but it consistently makes you money. Isn’t this why you are investing?

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I have a free video training series here, feel free to fully utilise it and learn from it. It is exactly the same strategy I use on a weekly basis. Success rate at slightly over 98%.  

How to Trade Weekly Options Smartly And Profitably

I have learned over a period of time that it is important to learn how to trade weekly options if one wishes to be successful making money with these types of options.

There is more learning than a typical strategy with calendar spreads or credits spreads, and then just go out and trade.

I believe if somebody did this they would make money right away but I can almost guarantee that in a year’s time this same person would have lost a lot more than they made.

Weekly options are a unique set of options to trade. They are different than monthly options because time decay has become such a big factor in deploying strategies.

weekly options expert

Using Credit (Options) Spreads

There are option trading strategies that investors need to embrace that use time decay as an ally. This is the first thing they need to know. I have discovered for myself that credit spread tend to be one of the better strategies to use for weekly options.

I also have learned that it is much better to make a little bit of money every week and trying to hit a home run. If an investor looks at the opportunities to make money with weekly options one can make quite a bit in a short period of time.

But— this opportunity also comes with great risk.

The more in individual desires to make a trade in these short periods of time, the higher the probability that a trade can also go against you.

It is very hard to control one’s losses when the options move so fast. Setting the stop loss is not working either. It is very easy for the stock to move quickly and break right through the computer signals for the trade. If this happens it leaves an individual a huge loss.

The best way that I have learned trade weekly options is to focus on making a little bit each week, become familiar with how the market moves on a short-term basis.

Make a Little Each Week

Making a little bit each week could mean anywhere from 1% to 4%, depending on how generous the market will appear that week.

Obviously what an individual can make in a trade depends on market conditions. From one year to the next the markets could change. One can find themselves making more or less safely.

If this type of trading is approached correctly, it is very conservative and very same. There is no reason that an individual cannot continue to win on a weekly basis.

Understanding Market Movement

What moves the market in such a short period of time? This is what the investor to educate him self on and understand when making this trade.

If you are in a trade for reading, looking at a chart for technical trading will not help. What moves the market in a short period of time? That’s the investor needs to ask himself.

Economic events, news and geopolitical activity are the things that sway in the market short period of time. The market will often have what I would describe as “reactionary move” that will influence whether or not a trade that investor makes is safe.

When a trade is considering a trade, if an investor and understand how the markets will move, he can find the safest trade for that week.

Use credit spreads; focus on making a small profit and educate your self on the things that move the markets in a short period of time.

These are the 3 most relevant things that I believe are most important investor to learn if they want to know how to trade weekly options.

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I have a free video training series here, feel free to fully utilise it and learn from it. It is exactly the same strategy I use on a weekly basis. Success rate at slightly over 98%.  

Who Has The Best Weekly Options Strategies

There are many approaches investor can take when exploring how to make money with weekly options. There are many different weekly option strategies as one can choose from.

How does an investor know which option strategy to choose?

Since weekly options have a short period of time before they expire, a weekly options strategy must take into account time decay.

This will help to alleviate many option trading strategies that do not make time decay and allies.

I have over 550 weekly option trades to my credit over the last five years and the one strategy that I have embrace and live eyes others to the same was using credit spreads.

Why do I embrace credit spread compared to all the other weekly option strategies?

It Embraces Time Decay as an Ally

Credit spreads embrace time decay as an ally, and weekly option strategies must do this in order to success.

Since a credit spread gets their profit “up front” time decay works in its favor. For those who choose to use a “debit strategy” time decay works against the individual as he gets closer and closer to the expiration of the option.

Credit Spreads are Simple

There are certain weekly option strategies that can be very complicated. Certain types of butterflies and condors can be very complicated, but I learned that simplicity is often very profitable.

It doesn’t take much thought to understand that if I sell one option for $.10, then I take that money and buy a less expensive option for $.07, I have three cents left over and that’s my profit.

Wisdom From My 550+ Option Trades

Although the strategy can be found online at numerous websites, there is more to executing the strategy then just putting on the trade.

I would encourage investors exploring weekly option strategies to learn how to trade this strategy safely before using real money.

There is a risk factor that every option trader needs to understand when they are making trades.

It is more risky to make a $.10 profit than it is to make five cent. How does one approach that risk? How does one approach a trade to make sure that they are making money and not losing more money than they make?

The answer to these questions is worked out in practice.

With all the trades that I have done with weekly options, I believe the most important piece of information I can share with investor is to practice.

A weekly options strategy is only as good as the ability of the investor to accurately make money.

I have seen one investor lose tens of thousands of dollars while another makes thousands of dollars using the same strategy.

Difference between the two is one knows how to use the strategy safely and accurately while the other did.

Embrace the credit spread as being weekly options strategy of choice. Not only is it time decay friendly, but it’s a very simple strategy executed.

Practice, practice— practice. Practice until you are accurately making money, then you are. Only then will you be able to use this weekly options strategy profitably make money with weekly options.

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I have a free video training series here, feel free to fully utilise it and learn from it. It is exactly the same strategy I use on a weekly basis. Success rate at slightly over 98%.  

A Consistently Winning Weekly Options Trading System

If an investor is going to successfully make money trading weekly options, he must come to an understanding that a weekly options trading system is more than just an options strategy.

Weekly options trading system not only includes an options strategy, but also must address other issues like: risk management; accuracy; options strategies and profit targets.

Risk Management

Trading weekly options, in fact trading any type of options without a risk management strategy is like playing Russian roulette with your money.

Nobody who knows what they’re doing goes into a trade without knowing how to exit the trade if he does not go their way.

I truly believe easier to make money than it is to keep. I can show anybody how to make money in fifteen minutes send them into the stock market and the probably do well for the first 3 to 6 weeks. There will come a time though when the trade will be threatened and they will not know what to do. At this point the probably in them losing more money than they started with.

A weekly options trading strategy includes knowing how one will exit a trade to lose the least amount of capital. This is why it’s called risk management.

Accuracy

How often are your trades winning trade? What can you expect to lose? For every 100 trades you make, give them will be losing trades?

Knowing how accurate a weekly option trading system is healthy investor know what type of risk to take.

If an investor is trading a high risk strategy where their only win in six out of 10, the loss one is willing to take will be different than someone who is trading the strategy that wins nine out of 10 times.

Under this example I think it’s important to point out that the riskier strategy usually are designed to bring in more profit per trade.

But knowing how accurate any weekly options trading system is to help one determine the type of risk they’re willing to take.

Profit Targets

How much are you going to make the trade? This seems like a minor question, but it’s not. It will dictate everything else about the trade.

The amount of money you want to make in your weekly options trading system will dictate accuracy and risk management approach.

It doesn’t take a rocket scientist to figure out that the more you plan to make her trade, the higher the risk ratio.

A “system” is a combination of things or parts that form a complex whole.

If you really have a desire to make the commitment profitably trading weekly options there is more to the trade than just picking a strategy.

There is a whole system which needs to put together and organize to create a long term profitable approach to making money trading weekly options.

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I have a free video training series here, feel free to fully utilise it and learn from it. It is exactly the same strategy I use on a weekly basis. Success rate at slightly over 98%.  

Option Investing is a Viable Alternative to Investing in the Stock

If an investor does not have a lot of money but hasn’t interest in being as effective as he can making money in the stock markets, is there an alternative that he can use instead of just always having to buy a stock outright? The answer to that question is yes. I believe that stock options are a viable alternative for investors to assist them in growing their portfolios. Using options is not an alternative that one should use and not think of investing in the stock, but it is an investment tool that could be used alongside long-term stock investing. Let me explain why I believe it’s a good alternative.

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I am going to use the S&P 500 SPDR exchange rate fund, the SPY as an example. As I write this article the SPY is trading at 157.88. If an investor is interested in getting into this ETF, 100 shares would cost about $15,788.00. Obviously, the investor’s intent is to invest because he believes the ETF will go up in value. If it goes up one point to 158.88 the value of the stock is now listed at $15,888.00. Buying the stock, the investor used almost $16,000 to make $100.

If the investor decided to use options instead of buying the stock outright, less money would have to be put on the table. If the investor buys an option that is priced just less than what the stock is presently priced at, it will go up in value as fast as the stock. In the case of the SPY trading at 157.88, that would mean any “call option” with the price of 157 or less. If the investor bought a call option (that goes up in value as the stock increases) it would cost much less but go up in value at the same rate as the stock.

Presently an option priced at 157 with about 60 days left to expire would cost an investor $275.00. If the stock went up to 158.88 the option would be worth $375.00. So one can see how using options can costs less than buying the stock outright.

Let me throw some caution out there to would be investors. It is important for one to do the research needed before one invests. If you are going to invest long-term in a company and you are interested in that stock going up in value, you need to do all the research you can to make sure that that stock is going to go in the direction you wanted to.

Investing in a stock option instead of the stock itself does not mean less research needs to be done. A responsible investor must still do the work necessary before investing in the stock or the option.

PS: Use DailyMarketView.com as one of your tool to make better trading decision today. It’s free!

Bollinger Bands Tutorial

Watch the video to learn how to use Bollinger Bands to help you make better trading decisions.

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Trading Weekly Options Using MACD John Mylant

Trading Weekly Options Using MACD John Mylant

Go to http://optionsweekly.org/ to learn more…

Weekly Options Trading Adopting Bollinger Bands Squeeze Play

Weekly Options Trading using Bollinger Bands Squeeze Play John Mylant style

Taken from somewhere

What happens if we miss the mark again on our objections like we did Monday? Joao Monteiro, analyst at Monex Capital Markets, had this outlook:

 “Given the run of misses we’ve seen in U.S. economic data of late, another shortfall here could serve to rattle traders. While this latest correction may be close to having run its course, anything that suggests the U.S. economy is going to struggle as the QE tapering continues will give investors another reason to look for the exit.”

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Trading Weekly Options Using RSI

John using RSI to trade weekly options.

Go to http://optionsweekly.org/ to learn more

Click on the image if you wish to learn this for free.

Click on the image if you wish to learn this for free.

What Are You Waiting For?

What are you waiting for?


“If you only do what you know you can do- you never do very much.”

If you are not making money in the stock market like you want to is it about time you start?

Send me an email and I will show you how:

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