Welcome the world of index options trading used by professionals for decades for consistent income generation month after month. Index options trading is somewhat benevolent than stock options trading with greater consistency and surety of outcome in predictable manner. If your aim is to generate a consistent monthly income stream month after month you have come to the right place.
Its not a miracle, get rich quick scheme or some fine tuned secret that only a few people in this world know and practice. In fact there is no holy grail in this rather lackluster, dull and boring strategy which does require minimal amount of monitoring and understanding how indexes works and how they can be a great source of income over a period of time.
We utilize three major indexes benchmark and backbone of all US stock trading. For starters we use RUSSEL 2000 Index known as RUT by symbol, Nasdaq 100 known as NDX and S&P 500 known as SPX. We do use other indexes and ETFS like OEX, MDX, XEO or QQQQ, IWM and others products as needed.
The strategic goal is to derive a consistent stream of income with high probability of success from selling of options in any type of bull or bear markets. Since this involves a great knowledge of world events and environment in which these indexes are traded we keep up to date with markets and their characteristic and what the markets and volume and prices actions are telling us to do. Using sophisticated Technical Analysis and various tools to measure market directions we in fact produce a direction less strategy which is does not involves days to day market fluctuations and yet is still viable to produce our end and desired objectives.
WHAT WE DO
We generate consistent monthly income using options as a vehicle. Options are a risk reducing tools and when used correctly they can be a powerhouse in the hands of those who can execute these trades with precision. Used unwisely and without knowledge it can be a recipe for complete disaster. Many option traders never fully learn how to use options and utilise them. Its not without saying that some trades are always losers and no matter how good an options strategist is, losses are a part of doing business. Its an accepted fact losses are going to occur and how to be prepared to take them .
We take a portfolio approach, and using combination of boring and sleepy strategies try to target earning 5% to 8 % returns per month. You may say 5% returns maybe are small, but they translate into 60% to 73% returns on yearly basis if you have a good consistent year. The strategy is to make small amounts, taking smaller risks, and safer trades, and generating consistent trades every month. If you are looking for home runs and getting rich quick, than this type of trading is not for you. Its appeal will be certainly be lost when those dreams will never come true. Capital preservation is our main goal, and trading a secondary aspect. If something is not working, its far better to get out and take a defined loss, and live to trade another day.