Curious about a no-indicator options trading strategy that claims to make 5.8% every month, regardless of market direction? Whether you’re new to options trading or a seasoned investor, this strategy is designed to be beginner-friendly and can be executed on autopilot. In this article, I’ll explain the strategy, why it works, and guide you through placing a live trade, so you can start implementing it for yourself.

Understanding the Strategy

Let’s dive into how this strategy works and why it’s so effective. It can be applied to various assets like stocks, ETFs, or Futures. For our example, I’ll use crude oil Futures, especially since it has recently dropped over 20%, creating an excellent opportunity. The core principle of this strategy is to place a level way below the stock, ensuring profitability even if the market goes up, sideways, or experiences a moderate drop.

Strategy Execution – Step by Step

Now, let’s break down the steps to execute this strategy using the options chain. We’ll focus on crude oil Futures options for this demonstration.

1. Selecting the Options:
   • Go for options with a maturity between 60 to 120 days.
   • Display the Delta column on your broker platform.
   • Identify the option closest to a 30 Delta, buy it, and simultaneously sell the one right below it. This creates a put debit spread.
   • Sell two options at around a 7 Delta. This is known as a 112 trade.
2. Profit Potential:
   • The strategy offers a high win rate, approximately 95%.
   • Even if the market goes up, you make money.
   • In the event of a drop, the strategy still yields profit.
3. Cost and Risk Management:
   • The trade may cost around $5,000 initially.
   • Adjustments can be made, like buying two puts with a 2 Delta to offset the sold options, reducing the initial investment.

Placing the Trade – Practical Walkthrough

Now, let’s go through the actual process of placing this trade. While it’s an efficient strategy, some platforms, like Futures, may not allow complex orders. In such cases, split the trade into two parts: the short puts and the put debit spread.

1. Short Puts:
   • Sell the seven Delta puts.
   • Buy two Delta puts to offset risk.
   • This creates a put credit spread.
2. Put Debit Spread:
   • Buy the 30 Delta put and sell the next one.
   • Ensure proper price adjustments for a successful trade execution.

Remember, this strategy doesn’t require intricate chart analysis or complicated indicators. It’s a straightforward approach that allows you to profit in various market conditions.

If you want to trade options 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