The options income playbook

[Pages:125]the options income playbook

Copyright ? 2016 by Sir Isaac Publishing Inc. 37 N. Orange Ave Suite 500 Orlando, FL 32801

All rights reserved. Printed in the United States of America. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior

written permission of Sir Isaac Publishing Inc.

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the options income playbook

Risk Disclaimer

There is a very high degree of risk involved in trading. Past results are not indicative of future returns. and all individuals affiliated with this site assume no responsibilities for your trading and investment results. The indicators, strategies, columns, articles and all other features are for educational purposes only and should not be construed as investment advice. Information for futures trading observations are obtained from sources believed to be reliable, but we do not warrant its completeness or accuracy, or warrant any results from the use of the information. Your use of the trading observations is entirely at your own risk and it is your sole responsibility to evaluate the accuracy, completeness and usefulness of the information. By downloading this book your information may be shared with our educational partners. You must assess the risk of any trade with your broker and make your own independent decisions regarding any securities mentioned herein. Affiliates of may have a position or effect transactions in the securities described herein (or options thereon) and/or otherwise employ trading strategies that may be consistent or inconsistent with the provided strategies. Privacy Policy

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How to Get the Most Out of This Book

Thank you for downloading "The Options Income Playbook". This book is designed for beginning, intermediate and advanced traders. The authors in this book are leading experts in trading options and stocks.

As you read this book, you will be exposed to multiple strategies that have high probabilities of success and/or high profit. Most of the strategies in this book are divided into three sections:

? "The Game Plan" - An introduction to a charting technique. The strategy is then thoroughly explained along with illustrations and examples.

? "The Movie" - The chapter is accompanied with a video which outlines how to use this strategy, with examples.

? "Special Offers" - If you really like a strategy, you can follow the presenter and the strategy. There are thousands of dollars' worth of trading tools, indicators, training and mentoring services, books and videos available at steeply discounted prices.

In short, you will have all of the information you need to trade your new favorite strategy tomorrow. Some of the things you will learn in this book are:

? How to Schedule a Quarterly Payday Trading Options During Earnings Season ? How to Avoid the Number One Mistake that Options Traders Make ? How to Use "Measured Moves" to Trade Credit Spreads ? Developing a Fighter Pilot's Tactical Mindset for Planning your Options Trades ? How to build an "Income Pyramid" to generate consistent income

At OptionPub, it is our sincere hope that you take away several strategies that you can use when you are done reading this book. You will also learn about markets that you currently don't trade, and you will find out if they are suited to your trading personality.

Finally, make sure to subscribe to OptionPub. We provide free eBooks, webinars, on-demand videos and many other publications for active traders in all of the markets. Our presenters are worldrenowned industry experts and our content is provided free of charge in a relaxed and friendly setting. Cheers to your trading success!

Table of Contents the options income playbook

The #1 Way to Make Weekly Income with Weekly

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Options In Any Market Condition

By Jack Carter,

Road Map to Trading Success

16

By Chuck Hughes,

Creating Income with Options

32

By Doc Severson,

THE STRATEGY FOR A SCHEDULED OPTIONS

44

PAYDAY EACH QUARTER

By Christopher Irvin,

TRADING CREDIT SPREADS FOR INCOME USING MEASURED

55

MOVE TARGETS

By Andrew Keene,

A 6-STEP PLAN FOR TRADING MARKET VOLATILITY SELLING

68

OPTIONS FOR PROFITS & HEDGING

By Larry Gaines,

COMBAT TRADE PLANNING

85

By Matt Buckley,

MINIMIZE RISK AND MAXIMIZE GAINS WITH OPTIONS

103

By Geoffrey A. Smith,

USING PROBABILITIES IN TRADING FOR INCOME

By Don Kaufman,

116

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the options income playbook

The #1 Way to Make Weekly Income with Weekly Options In Any Market Condition

By Jack Carter,

Trading weekly options can be a great way to generate consistent weekly income, but the key is to learn how to trade them the right way. In this discussion, you will learn how most people trade weekly options and why they fail. Next you will learn a simple strategy for trading weekly options that can consistently put money into your account on a weekly basis.

Weekly Options

"Weekly options are the biggest game changer for the independent investor since the invention of the Internet." And now, thanks to three recent changes in the options market, you can get an even bigger advantage. Here's why. The first big change:

1. The invention of weekly options. Normal options are listed in months. You can buy and sell stock options several months out in time. Weekly options expire weekly. These weekly options give you a new way to trade.

2. Weekly options volume has soared. When weekly options first got traction back in 2010, they were small in scope and volume. But by 2016, weekly options volume skyrocketed. This gives you a liquidity advantage.

3. The number of stocks with available weekly options has grown 200%. The list of stocks is at the point where you can now find several great weekly options trades, regardless of market conditions.

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the options income playbook

As a result of these changes, you get great liquidity and more available trading opportunities with weekly options. I'm Jack Carter, and I have over 30 years and close to $1 billion in trading experience. I was trained at the World Trade Center in 1985. I traded throughout the largest up and down market in history. My record was over $8 million of stock in one day. In my career, I've been a stockbroker, a NASDAQ market maker, a professional day trader, and a hedge fund manager. But most importantly, I've successfully taught traders from 43 countries to make profit-rich trades. I'm not telling you all of this to impress you, rather to impress upon you that this is 100% real, not some hypothetical stuff some guy made up but never made any real money on. Now I've discovered what I believe is the biggest trading advantage for the little guy since the invention of the Internet.

The #1 Way to Make Weekly Income With Weekly Options!

After losing my own money early in 1984 as a stockbroker, I went on to find success with options after working as a hedge fund trader. From this experience, I can save you a lot of time and lost money right now. At some point in your journey, if you don't get wiped out along the way, you'll discover that there are definitely winners and losers in the options market. The reason is because options are a "zero sum" game. But it's simpler than that. Here's why: When you own a stock, you can own it forever. But when you own an option, it's only good for a certain amount of time, until expiration. And the cold hard truth is that most options expire worthless. The reason is, because options buyers run out of time.

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the options income playbook

This means options buyers lose all their money most of the time. The real money in the options market is in selling options. The odds are in your favor, simply by being an options seller. Weekly options give you a huge edge because they expire every week. This means you can make weekly income selling weekly options that expire worthless. But how can you make it work? There are three parts to this.

Part 1. The stocks Part 2. The options Part 3. The strategy ? getting paid

Part 1: The stocks This is the most important part. Not all stocks have available weekly options. And the ones that do aren't always good to trade. First and foremost, we want a stock with available weekly options that's in a good trend. We take the list and look at each stock with available weekly options and narrow it down to three to five of them that are in good trends. Part 2: The options There are only two types of options, puts and calls. And there are only two things you can do with options--you can buy puts and calls or you can sell puts and calls. If you buy a put option, you own the right to "put" the stock to someone at the strike price until expiration. If you sell a put, you sold someone the right to "put" it to you at the strike price until expiration.

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