Selling Weekly Options for Income Using Charts - MasterTrader.com

are you an active trader wanting to generate weekly income from selling high probability short-term options which don't take a lot of time well today I'm going to show you exactly how to generate income every week using the master trader method which combines specific chart patterns and volatility analysis to sell short-term expiring options stay tuned it's master trader calm I'm Dan gibby at master trader and I've been actively trading options for over 25 years be sure to subscribe to our chart of the week and YouTube channel if you want to learn how to make money investing and trading in the markets today I'm going to show you how easy it is to sell options and spreads using the charts and we're going to review all seven option trades we made in our weekly option service and I'm going to show you the strategies and results on all seven trades okay let's get started although master trader does teach traders how to buy options for a directional trade when multiple timeframes are in alignment and we're looking for a bigger gain we're gonna be talking today about selling options and option spreads because of the ease in which we find them and trade them around the charts when you buy an option it's a time wasting asset the stock has to perform for you in these strategies we're going to be selling options because we make money through that time decay inherent in options the markets can be going up down or sideways choppy and we find opportunities every single day having higher volatility in the particular stock and overall market is better because then when we're selling these options we're getting more money for the premium and we don't have to time the entries precisely either when trading stocks or our directional option trades so we're getting paid actually as you're gonna see in these upcoming examples we're just predicting where a stock is not going to go and we have a cushion to be wrong and we still make our maximum gain these were all trades in the master trader week the options trader last week let's review them everything starts with the pattern so this was a bullish Pro gap breakout then a one two three consolidation now could you have done a directional trade on this because of this bullish pattern absolutely but this is a weekly options trader where we primarily focus on shorting off so on this day I'm have all of these mark where the arrow is over the high we sold the 97.5 put which was under support if you would go down to an hourly chart there was a great support there and then we bought the $95 further out of the money put that's referred to as a bull put credit spread we had 10 days to expiration we took in 57 cents a share as long as it closes above 97.5 in 10 days we make our maximum 57 cents a share on a 10 lot that represents five hundred and seventy dollars divided by devalue the maximum risk that's twenty nine and a half percent return on your buying power you can see here it closed above 100 dollars so that was a full maximum gain trade to us micron nice bullish solid ation higher highs higher lows rising 20 50 200 over the high of this bar it's a breakout we sold forty two point five naked puts on Monday so it's just five days to expiration took in 20 cents a share so on a 10 lot that's two hundred bucks two point four percent ROI expired worthless next one Autodesk another strong uptrend kind of sloppier here I wouldn't buy this stock just because of this sloppy consolidation but with this nice bottoming tail higher low bullish engulfing over the high of this we sold the 120 which is way the heck down here so we had a huge cushion for the stock to go against us this 120 was under this bottoming tail bar then we bought the 116 put for protection took in 35 cents a share nine point six percent ROI and since we had a rapid gain we just bid five cents and closed out at eighty six percent of max profit within a couple days now this is again it was not a directional setup by any means this is the S&P 500 ETF we had three bottoming tails so right into the clothes provided it closed above the number we gave which was introduced we sold the 256 point five to fifty bull put spread only three days of risk 43 cents that expired worthless so we made eight and a half percent on that one win bullish break out choppy choppy consolidation so this was not a directional trade for us but when it took out the high of that bar we sold the 149 which was under this support bought the 143 again to make it a defined risk trade and less margin took in 71 cents into strength we tightened our stop and we got actually stopped out at 30 cents but we still made 58% of our max profit bowing this actually was a trade that we found in our live options trading course for those who who took our ten module option strategy series for investors and traders we found this one in live trading just a double top on bowing after we noticed a breakdown in the sector so we went way above the highs here and just sold at 270 275 bear call spread eight days of risk fifty five cents a share maximum gain 12 point foot by its sense of fell rapidly in two days after our entry we just closed it out at a dime to avoid the extra six days of risk and we made 82 percent of max profit final one here is another trade that we found in our live trading course it gapped down here after a lower high now this isn't this is still in an uptrend so just bear in mind we're just calling a short-term top we sold the 139 140 to bear call credit spread so same thing and Boeing in this we just sell the big bearish we're just calling a top and getting paid for it so we took in 12.2% 35 divided by 2.6 five is how we calculate that and we close that one at a at a nickel into weakness again for 86 percent of Max gain so if you took a 10 lot on every one of these trades that that were in our weekly options as twenty six hundred and sixty bucks in a week these do not take a lot of time to to fine to put on and to manage you annualized that and you know that that's a respectable paycheck just for selling very simple credit spirit but what we do just keep this in mind it's discipline of patience to follow your plan and method and we love these simple credit spreads and this is the weekly options creator that I mentioned to you since time decay occurs rapidly the last week or two into expiration we have this separate service that focuses on these short-term opportunities you find tremendous amount of great plays we can also focus on earnings plays gap plays volatility plays we have a device defined portfolio of fifty seven fifty to like eighty liquid optional stocks ETFs indices that we're just monitoring every single day throughout the day have them ranked by volatility and that's where we find trades that's all for this video be sure to check out the weekly options trader free by taking a 21 day trial to our advisory letter for only $7 it's really a fantastic way to make money each week and it's easier than you ever believed the link is also posted in the comment section in case you have any questions and keep watching these videos here we've got a ton of great information on the channel to help you make money investing and trading in the markets thanks so much for watching happy trading and see you next time

Channel: Master Trader

Views: 36,054

Rating: 4.875 out of 5

Keywords: dan gibby, Greg Capra, Master Trader, Online Trading, option strategies, Stock Market, Technical analysis, Trading Plan, bullish option strategies, bearish option strategies, selling options, covered calls, weekly option income, investing, managing retirement account, position trading, credit spreads, selling puts, selling put spreads

Id: YZXLGwa6J9g

Length: 8min 48sec (528 seconds)

Published: Sun Nov 19 2017