How to Create Cash Flow with Options Trading
Facebook Twitter The holy grail for many retail traders is to find a strategy that puts more money into their pockets each month after taxes than expenses pull out of their pockets. The search for this consistent cash flow can be a long and arduous path of evaluating buy-and-hold investment strategies, futures, options, and even Forex.
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And the buy-and-hold, while powerful, is slow. Both futures and options are great ways to incorporate some leverage without undue risk and allow for faster returns than buy-and-hold.
Favorite Option Spreads Two options spreads that generate serious income with little risk, particularly when compounded, are bull puts and bear calls. Bull Put Credit Spread Risk Graph Bull Put Credit Spread Risk Graph The Power of Expectancy When you combine bull puts on bullish stocks with bear calls on bearish stocks, you end cash flow options with a great cash flow options flow strategy that also provides natural capital preservation; if the stock market soars, the bullish spreads win, and if the stock market crashes, the bearish spreads win.
Because both spreads have limited risk, principal is largely protected.
And cash flow options stocks mostly keep trending or meandering in the same direction, more often than not the spreads expire worthless. Inherently, that means a positive expectancy cash flow model is constructed.
Scanning every stock in the market daily to identify the best income-producing spread trades with the optimal reward-to-risk ratios was a monumental task for any trader regardless of how experienced. So, we built a computer algorithm that could cash flow options it automatically. We view it as an automatic way to screen for the best trades, with the highest expectancy, while eliminating that most pesky of trading pitfalls: human emotion. Looking for a proven, repeatable way to make easy, higher-potential trades?
In this limited-time free training, you will learn 3 super simple tricks used to generate consistent profits from day trading weekly options… Get our shortcuts delivered daily to your inbox.