Good morning, |
I make the same high probability trade over and over in the $2,000 Small Account Journey. |
It's called a bull put spread or short put vertical. |
If you make it to the bottom of this email I believe you'll have the same aha moment I had. |
Here are 7 things you need. |
You need $2,000 margin account
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You need 1-3 earnings winners
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NVDA, JPM, and META are a few I'm trading now. Since all we're doing is bull put spreads, an earnings winner that smashed the predicted move and provided strong guidance is NOT likely to come back down, further increasing our probability of winning the trade. |
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You need to know 4 bullish patterns
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After a company smashes the predicted move, the chart will skyrocket and then settle into a bullish consolidation pattern. This is called the 'rest phase' before the trend continues or a bullish continuation pattern. |
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Do you see the cup with handle on META? |
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8 of the 21 straight wins seen here were on META from May 8 on. |
 | Results not typical. Trading is hard. Most traders lose money. Nothing is guaranteed. |
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You need to know what a short (credit) vertical put spread is
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Do not get hung up on this part. If you subscribe to my service I will teach you this live. It's much easier to understand that way. However, if you want to nerd out like me, then enjoy. |
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You need to understand probability
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A bull put spread means I'm SELLING a put and buying a put, simultaneously. If you subscribe I'll demonstrate real-money orders for you which is the quickest way to learn. But trust me, it's NOT complicated. |
So do option SELLERS have a trading edge? |
Based on a CME study of expiring and exercised options covering a period of three years (1997, 1998 and 1999), an average of 76.5% of all options held to expiration at the Chicago Mercantile Exchange expired worthless (out of the money). This average remained consistent for the three-year period: 76.3%, 75.8% and 77.5% respectively, as shown in figure 1. |
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Three key patterns emerge from this study: (1) on average, three out of every four options held to expiration end up worthless; (2) the share of puts and calls that expired worthless is influenced by the primary trend of the underlying; and (3) option SELLERS still come out ahead even when the seller is going against the trend. |
In fact, of put options alone, 82.6% expired worthless. |
The last point on put options illustrates why this strategy I'm teaching you to grow a $2,000 balance is so effective. All we do is SELL put spreads and ONLY on stocks that smashed the predicted move. Starting to add up? |
The study suggests we have an 82.6% chance of winning these trades. When you couple that with a stock that recently smashed its expected move, NVDA for example, we know the prevailing trend is bullish, further increasing our probability of winning. |
You need to understand the time decay of an option
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Options are time-limited, expiring trades. Near expiry, the trade "spoils" with less chance for buyers to make a profit. In the final 30 days, the rate of decay really picks up speed, with the steppes decay occurring in the final 5-7 days. This "time decay" is why 76.5% of all options trades normally expire worthless and of put options alone, 82.6%. |
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You need to know the economic calendar
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The economic calendar informs us of market moving reports that could temporarily disrupt the trend of strong stocks. This is important because we want to trade outside the noise. As a subscriber to the $2K SAJ, I break this down the reports I believe will move the market, so we're prepared. |
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In closing, in my current $2,000 Small Account Journey I've grown $2,000 into $11,709 on 21 straight wins, trading only 3 stocks, all of which were bull put spreads. |
That's 485% growth in 5-weeks. |
 | Results not typical. Trading is hard. Most traders lose money. Nothing is guaranteed. |
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A strategy or an edge is nothing more than an indication of a higher probability of one thing happening over another. |
The $2,000 Small Account Journey is the highest probability trading strategy I know of. |
And that's why I think it's perfect for trying to grow $2,000. |
I continue to trade the $11,709 Journey seen above. |
But this week I am starting a NEW $2,000 Journey for the next 100 72 subscribers. |
The cool thing is, if you join now, you'll get to see both balances in action in the daily watchlist and real-time trades alerts to your smartphone BEFORE I enter and exit. |
Let's waste no time here. |
The next 100 72 subscribers get a 75% discount with … |
… COUPON CODE: SAJ75 |
CLICK HERE to Start Your Journey Today |
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Jason Bond |
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