We just closed out a trade in Netflix (NFLX). This was a low stress, high odds trade set up that generated about 10% return in just over 2 weeks. We had a plan to put this trade on, take this trade off, and manage risk if this trade started to turn against us.
I will give you the details of this plan, but first, let me tell you how this trade set up makes money…
When we sell a put spread, we’re making a bullish bet that the underlying stock or ETF will be trading higher. This is also known as a Bull Put spread and this trade is always Positive Delta trade. When we put this trade on, we can make money if:
- Stock goes up
- Stock trades sideways
- Stock trades lower but stays above our short put strike by expiration
We select a put that is OTM (out of the money) and pick our own probability of success. We like selling puts around 20 delta and that gives us around 80% probability this trade will be profitable.
Here’s what we sent to our members:
[optin_box style=”6″ alignment=”center” email_field=”email” email_default=”Enter your email address” email_order=”1″ integration_type=”mailchimp” thank_you_page=”https://mrtoptick.com/iron-condor-training-confirmation/” already_subscribed_url=”https://mrtoptick.com/iron-condor-training-confirmation/” list=”873093c1a1″ name_field=”FNAME” name_default=”Enter your first name” name_order=”0″ name_required=”Y” opm_packages=””][optin_box_field name=”headline”]Get Your FREE Iron Condor Training Today[/optin_box_field][optin_box_field name=”paragraph”][/optin_box_field][optin_box_field name=”privacy”]We value your privacy and would never spam you[/optin_box_field][optin_box_field name=”top_color”]undefined[/optin_box_field][optin_box_button type=”0″ button_below=”Y”]Get Instant Access![/optin_box_button] [/optin_box]
Over the next 17 days, the stock traded sideways and options we sold have decayed enough for us to realize a profit without being right on the direction of this stock. If we had just bought the stock outright, this trade would be a breakeven at best. We like to use options to structure our trades that are profitable even if the stock goes nowhere.
We had a plan to scale into this trade if NFLX traded below 190, but it never did.
We had to settle for taking a 50% of max profit in 37% of the duration of this trade.
At Income Navigator, each trade is sent out to all of our members with exact details how to enter, adjust and exit the trade.
If you want these kinds of trades sent directly to your inbox, then you should give our service a test-drive.