How to Secure Double-Digit Option Gains

A sure-fire way to juice your profits... [Shield] AN OXFORD CLUB PUBLICATION Loyal reader since October 2019 [Liberty Through Wealth]( [View in browser]( SPONSORED [New Bitcoin Projection: $165,000 in the Next 18 Months]( [Crypto Bull]( New Bitcoin ETFs... Trillions in Cash Pouring in... Crypto is Set to Experience Another Major Bull Run. And It's One Particular Catalyst That Could Set Off a New Run Projected to Hit $165,000 Per Coin. [See Why This Will Send Crypto Soaring Again Here.]( EDITOR'S NOTE Are you on track to hit your financial goals? Given everything that's going on in the market and economy right now... we know it isn't easy. Below, our friend and CEO of TradeSmith Keith Kaplan details a sure-fire way to stay ahead of your investments... And that's also why, here at The Oxford Club, our team is locked in on one specific goal right now... [We want to show you an easy-to-implement strategy that offers less risk... more income... and better return potential.]( And there's no doubt that the strategy we share during our upcoming ["Brokerage Bonus Cash" Summit]( is the perfect solution. If that sounds like something you're interested in, plan to join us on [August 27 at 8 p.m. ET.]( You can find out more about what we have in store for you in [this short video](... - Nicole Labra, Senior Managing Editor THE SHORTEST WAY TO A RICH LIFE [How to Secure Double-Digit Option Gains]( [Keith Kaplan, CEO, TradeSmith]( [Keith Kaplan]( I'm a huge fan of options. In fact, going into 2023, I said that if I had just $5,000 to invest in the markets for the year, I wouldn't have invested it at all. Rather, I'd have used [options trading strategies]( to generate consistent gains of around 1% on that money each week. As I mentioned, those kinds of returns don't sound particularly exciting... until you consider they can add up to compounded gains of about 67% a year. Yes... by earning 1% on your $5,000 each week and compounding it, using the options strategy I'll lay out here today, you'd have wound up with $8,350 at year end. That's more than double the 24% you'd have gotten riding out 2023 in an S&P 500 index fund. Not to mention that, when you compare that to a longer-term annualized return, 67% with options is more than five times better than just holding stocks. Best of all, it's possible to earn these returns in any market environment. The best options strategies work in bull markets, bear markets, and everything in between. So, today I want to share three rules I've found to be critical for consistent options trading success. Rule 1: Focus on selling rather than buying options The majority of options end up expiring worthless. That means the odds of success are generally tilted overwhelmingly in favor of options sellers versus buyers. You can [think of the options market as a casino](. Folks who buy options are like gamblers. They might get lucky and hit it big occasionally, but most people end up losing most of the time. On the other hand, folks who sell options are like the house. The casino is mathematically guaranteed to come out ahead in the long run. That means [you're much more likely to be successful using strategies such as selling covered calls or cash-secured puts than if you are simply buying calls and puts](. With these strategies, you're selling other investors the right to buy or sell stocks at certain prices by certain dates. Since a big chunk of options expire worthless, the odds are much more on your side as a seller than a buyer. That's not to say you can't make money as a buyer... just that it's statistically less likely. SPONSORED [4,735% Revenue Surge: The Linchpin of Nvidia's AI Dominance?]( [Artificial Intelligence concept]( As Nvidia's new Blackwell chip sparks an AI revolution, one company is poised to skyrocket. This unsung hero's revenue could soar up to 4,735% in the next 12 months as tech titans line up to secure their groundbreaking technology. Early investors could see life-changing gains as this story unfolds. [Don't miss your chance to ride the AI mega-trend.]( Rule 2: Aim for singles, not homeruns Of course, even casinos lose money occasionally. And sometimes those losses can be significant. The same thing applies to selling options. So, I generally like to reduce my risk even further by selling short term options - those expiring within a week to a month - with a very high probability of expiring worthless. This happens when the options contract is out of the money (OTM). To use a baseball analogy, this approach aims to hit singles rather than doubles, triples, or home runs. Your potential returns will be smaller, but your chances of success will be much higher. That's Rule 2. That is one of the areas where [Options360]( - TradeSmith's powerful suite of options trading tools - really shines. Specifically, Options360's proprietary Probability of Profit (POP) metric provides the most accurate assessment of how likely a trade is to succeed that I've ever come across. When selling options, the POP indicates the probability that a particular option will expire OTM (worthless). Here's an example of an option with a high Probability of Profit and a 2% potential return found by our algorithm. (Note that this isn't a recommendation, just an example.) [Trade Summary]( For this example, Petco (WOOF) stock was trading at about $4 in June, and the strike price of this put option was $2.50. If WOOF stayed above $2.50 through expiration on June 21, this put option would indeed expire out of the money, and therefore worthless. If you were a seller of this option, that means you would keep the $5 in premium for selling the option, then move on to the next trade. And Options360 sees a 99% probability that it'll work out like this. I generally look for trades with at least an 80% POP, but 90% or greater is ideal. However, if you're not an [Options360]( subscriber, you're not entirely out of luck. You can use an option's "delta" in a pinch. If you're unfamiliar, delta is one of the five so-called "Greeks" - along with theta, gamma, vega, and rho - that measure various aspects of an option's price. Delta measures how sensitive an option is to changes in the price of its underlying stock. However, you can also use it to estimate a short-term option's probability of expiring in the money. Specifically, you'll generally want to target short-term options with deltas between 0 and 0.10 when selling covered calls, and 0 and -0.10 when selling puts. It's not perfect, but these ranges should roughly equate to a POP of 80% or better in our system in most cases. Rule 3: Stick to high-quality companies for an extra measure of safety However, even if you strictly follow the first two rules, there is always a tiny chance the option you sell will expire in the money. If you were selling covered calls instead, this isn't necessarily a problem. It just means the underlying stock may be called away from you, and you'll be forced to sell. But when selling put options, you may be put (required to buy) shares of the underlying stock. So, my third rule is to sell options on high-quality companies that you would be happy to own for a time if necessary. These stocks tend to perform better and be less volatile, which means you're less likely to suffer a significant, permanent loss of capital even if you're required to buy shares for more than their current price. I hope this breakdown helped show you how powerful an options-selling strategy can be in the right hands. So long as you put the odds on your side by being a seller, targeting high-probability trades, and sticking to quality businesses, then you're trading options far better than the 99% of traders who simply use them to speculate. Like I said, you can study all about delta and the other Greeks if you want to start doing this yourself. But before you do, I recommend checking out what our comprehensive options-analysis software, [Options360]( has to offer. This software helps you create that 1%-per-week trading plan that can outperform the market even in hugely positive years like 2023 - and what 2024 is shaping up to be. To learn more about [Options360]( check out my ["Brokerage Bonus Cash" Summit]( on Tuesday, August 27, at 8 p.m. ET with Chief Investment Strategist Alexander Green and Chief Income Strategist Marc Lichtenfeld. The event is entirely free to attend. [Simply click here to save your seat.]( All the best, Keith [Leave a Comment]( [OXF Seven]( BUILD AND PROTECT YOUR WEALTH - [He Called Apple, Amazon, Netflix and Nvidia Over 20 Years Ago. Now He Says to Buy AI's "Next Magnificent Seven" Stocks.]( - [The Tech Stock That's Dominating Headlines This Week]( - [How to Profit From the Surge (Outside the Stock Market)... Click Here.]( - [How Smart Sizing Can Multiply Profits and Minimize Losses]( JOIN THE CONVERSATION [Facebook]( [Facebook]( [LinkedIn logo]( [LinkedIn]( [Email Share](mailto:?subject=A%20great%20piece%20from%20Liberty%20Through%20Wealth...&body=From%20Liberty%20Through%20Wealth:%0D%0A%0DA%20sure-fire%20way%20to%20juice%20your%20profits...%0A%0D [Email Share](mailto:?subject=A%20great%20piece%20from%20Liberty%20Through%20Wealth...&body=From%20Liberty%20Through%20Wealth:%0D%0A%0DA%20sure-fire%20way%20to%20juice%20your%20profits...%0A%0D MORE FROM LIBERTY THROUGH WEALTH [Token Offerings]( [The New Enemies of the American Dream]( [Token Offerings]( [How to Trade Options With Better Odds]( [Token Offerings]( [Stop Worrying About a Recession]( [Token Offerings]( [Turning Political Drama into Potential Gains]( SPONSORED [Yours Free! Top FIVE Dividend Stocks Right Now]( Marc Lichtenfeld - income expert and author of Get Rich with Dividends - is giving away his Ultimate Dividend Package... completely free of charge! You'll discover... - An "A"-rated, ultra-safe dividend stock with a huge 8% yield - Three of Marc's favorite "Extreme Dividend" stocks, which could supercharge your income - And finally, Marc's No. 1 dividend stock for a LIFETIME of income. [Click here to get the names and ticker symbols now](... before the download link expires. **NO CREDIT CARD REQUIRED!** [The Oxford Club]( You are receiving this email because you subscribed to Liberty Through Wealth. Liberty Through Wealth is published by The Oxford Club. Questions? Check out our [FAQs](. Trying to reach us? [Contact us here.]( Please do not reply to this email as it goes to an unmonitored inbox. [Privacy Policy]( | [Whitelist Liberty Through Wealth]( | [Unsubscribe]( © 2024 The Oxford Club, LLC All Rights Reserved The Oxford Club | [105 West Monument Street](#) | [Baltimore, MD 21201](#) North America: [877.806.4508](#) | International: [+1.443.353.4610](#) [Oxfordclub.com]( Nothing published by The Oxford Club should be considered personalized investment advice. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by our employees to you should be deemed personalized investment advice. We allow the editors of our publications to recommend securities that they own themselves. However, our policy prohibits editors from exiting a personal trade while the recommendation to subscribers is open. In no circumstance may an editor sell a security before subscribers have a fair opportunity to exit. The length of time an editor must wait after subscribers have been advised to exit a play depends on the type of publication. All other employees and agents must wait 24 hours after publication before trading on a recommendation. Any investments recommended by The Oxford Club should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company. Protected by copyright laws of the United States and international treaties. The information found on this website may only be used pursuant to the membership or subscription agreement and any reproduction, copying or redistribution (electronic or otherwise, including on the world wide web), in whole or in part, is strictly prohibited without the express written permission of The Oxford Club, LLC, 105 West Monument Street, Baltimore, MD 21201.