Looking for an options strategy to generate passive income? In today’s article, I’m excited to share with you one of my favorite options trading strategies that has not only helped me achieve an 85.3% win rate but also allowed me to generate passive income, irrespective of market direction. This powerful strategy is known as the “Options Strangle.”

My Go To Options Strangle Strategy

The Options Strangle strategy is designed to capitalize on market movement, whether it’s upward, downward, or sideways. This versatile approach involves simultaneously selling a put option and a call option with different strike prices. By creating a “strangle,” we give the stock a wide range (typically 10-15%) to move within a specified timeframe, usually around 21 days.

Why My Options Strangle Strategy Works

The brilliance of the Options Strangle lies in its adaptability. With this strategy, you make a profit as long as the stock stays within the predetermined range. This means you can earn money if the market goes up, down, or even remains neutral. The 85.3% win rate comes from the flexibility provided by the wide margin of error, allowing you to weather various market conditions.

Safeguarding Against Market Crashes

While the Options Strangle is a powerful income-generating strategy, it’s crucial to acknowledge its historical vulnerabilities during market crashes. To mitigate this risk, I employ a strategic indicator that helps me identify potential crash scenarios. By monitoring the standard deviations of the stock’s movement, I can stay out of the market during periods prone to crashes. This has significantly smoothed out my equity curve and ensured consistent gains.

In conclusion, the Options Strangle is an effective and accessible strategy for traders looking to generate passive income. By mastering this approach, you can capitalize on market volatility, diversify your trading portfolio, and, most importantly, make money consistently. Remember, understanding the risks and implementing protective measures, like the crash indicator I use, is key to long-term success. Happy trading, and may your options bring you both profit and peace of mind!

If you want to trade strangles and credit spreads profitably with a 86%+ win rate and consistently generate monthly income, then join the 10% Credit Spreads program!

Thanks for reading 🙂
Austin Bouley
CEO & Chief Strategy Officer