The Best Options Trading Management Strategy!

 I see a golden opportunity for the next three weeks to make some great returns.  Those of you who are inside the Options Trading Millionaire Membership, know one of my great strengths as a trader is predicting the Price Action of the day’s trading and seeing upcoming long term trends.  

So click below to see exactly how I make money using the Money Press Method

I do this by following a strict daily routine before the Market opens.  We call this routine AMMO – the Early Morning Market Outlook.  If you subscribe to Investing Buddies you will get the training so you can follow the same routine.  Knowing the upcoming Market price action and trends almost guarantees you will be in the right trades at the right time.

Just putting on the same trade all the time.  You will get lucky here and there but overall you will never get the consistent big returns you are hoping for. 

Here’s an example of what I am talking about. Our 10-Week DATA class where I trade live online every day with folks ended on Friday a week ago. I transferred all but $25K out of the account to set up for the next DATA Series which starts on April 20th.   

This week past I saw some great trade set-ups and I just couldn’t help myself.  I placed a few trades and ended with over a 12% return for the week.

Nice but not unusual for me.  I get consistent returns by reading the market before it opens every day.  My premarket morning routine is the kind of stuff I share so you will be a great trader too.  

My insight moving forward is we will have a nice gradual uptrend for the next three weeks until earnings season starts.  

One of my favorite trades is a Credit Put Diagonal Spread.  I like it because it works in so many market scenarios.  But you do have to know how to adjust the trade to match the Market for success.  I teach about the set up but I spend much more time on trade management of a money press.

Credit PUT Diagonal Spreads

Commonly called a Money Press

First what is a Money Press.  

It is a set up where you buy a Put position in a future expiration.  The usual expiration you would choose is just before or after the next Earnings announcement.

Then you sell a PUT position for next Friday’s expiration right at the money.  If the price of the stock goes up that position will expire worthless and you get to keep the sold premium.  You just keep repeating the same process of selling week after week.

It takes about 2 ½ weeks to cover the cost of the long.  All the other sold weeks are your profit.

Remember I said earlier I believe we are going to have a nice smooth up trend for the next three weeks before the next earnings season.  Although I love placing Money Press trades, the usual set up won’t work as well.

Let’s consider AAPL.  Their next estimated earnings date announcement is estimated for 4/27.  The stock is now up trending and has broken through a strong resistance area.

If you sell a PUT at the money for the next 3½ weeks,  your should have a total credit of about $3.33.

The trick is buying the protective PUT at the right strike.  What I do is trade a wider spread between my sold weekly and the long strike in the April 28th expiration.  The stock is currently trading at $165.90.  I would choose the $157.50 strike to buy my PUT and pay $1.81

Potential profit is $1.52.  Not a bad return for 3½  weeks

Investment:  $1.81

Profit:  $1.52

% Return on Investment:      83.9%

There is another possibility.  Here’s my “What If” question.  If I trade a Credit PUT vertical each is my potential gain better, about the same or worse?

Credit Put Vertices each week with a $5 spread

Week 06APR23 $0.26

Week 14APR23 $0.53

Week 21APR23 $0.53

Potential Profit $1.32

There are pros cand cons to each approach.  That is what we will be covering in detail in this week’s Deep Dive on our Thursday Webinar.

Lot’s of good stuff coming up in Investing Buddies.

Next DATA session starts on April 20th   Now is the time to sign up for it before we reach our maximum capacity

We have scheduled our Fall Live Event for November 1-3.  It is a special one because it will be in my home town.  You are going to see what East Texas is all about from the incredible BBQ to outstanding blues musicians to the annual Rose City Festival plus this event is set up where you not only are listening to a lecture but then you get to practice with a small team what you have just learned.