Stock & Options
Pick Quality Stocks
- Technically strong
- Time tested stock search engines
- Implied volatility > 35%
- Last price between $10-$120
- Open interest > 25,000 contracts
- Earnings not announced during the holding period
Sell Option Premium
Buyer
Call: Has the right to buy stock at a certain price
Put: Has the right to sell stock at a certain price
Seller
Call: Has the obligation to sell stock at a certain price
Put: Has the obligation to buy stock at a certain price
Buy Stock, Sell Call Above & Put Below
Sell OTM call(s) 4 weeks out
Buy stock in 100 share increments
Sell OTM put(s) 4 weeks out
4 Week Expiration Cycle
Adjust to Market Environment
- Weekly simple moving average calculated based on the Friday close
- Market environment determined to be Green, Yellow, or Red
- Investment Percent
- Green 75%
- Yellow 50%
- Red 0-25%
Diversify Across Sectors
Market Sectors
- Common. Services
- Consumer Discretionary
- Consumer Staples
- Energy
- Financials
- Healthcare
- Industrials
- Materials
- Real Estate
- Technology
- Utilities
This information is for informational purposes only and should not be considered as investment advice. Past performance is not indicative of future results, and all investments carry inherent risk. Consult with a financial advisor before making any investment decisions.