It may be surprising to know that the current market is an excellent environment for this options trading strategy. Adapting the M3 trade to win in 2020, despite the current modeling challenges, can be done and that is what you will discover in this episode of The Winning Trade!
Returns of this trade: This trade earned about $5,050 profit or about 10% of the planned capital.* Click here to view some annual returns*.
Description of this trade: The M3 is a high probability, market neutral, positive Theta trading strategy, which means that the trade tends to generate its profits over time rather than through price movement. This trading strategy was developed in 2007 and has been traded by hundreds and hundreds of traders through all market types, making this trading strategy the most time tested income trading strategy available today. This strategy was designed to be used on the Russell 2000 (RUT) index.
Minimum Capital Required: $5,000 per trade
Example size: $50,000 planned capital
Profit Target: 10% or $5,000 for this example
Exit Loss Trigger: 10% or $5,000 for this example
Entered Trade: 56 days to expiration
Trade Configuration: Butterfly with a call option
Trade Duration: Up to 56 days
Trade Adjustments: Yes. Rolling and verticals
Overlapping Trades: Yes
Why do we love this trading strategy? It performs well over an extremely wide range of market conditions.
Adapting the M3 trade to win in 2020 can be done and M3 traders have the opportunity to receive unparalleled training and support. This trade has been followed on the Options Trading for Income weekly webinar hosted by it’s developer John Locke since 2012. You simply cannot find that many years of detailed, by the guidelines examples anywhere! And you can gain access to these recorded archives by simply joining our PRO or GO memberships. By doing so you’ll also receive access to the trade logs as just one of the many benefits of membership. Those who have access to this treasure trove of information have the opportunity to gain a very deep understanding of how this and many other effective options trading strategies flow through different market conditions. In addition, being able to go back in time to research how the trade performed historically from it’s developer is priceless. Click here and scroll down to see the returns since 2012!
Returns of this trade: This options trading strategy earned about $5,534 profit or about 11% of the planned capital of $50,000.*
Returns of this trade: This trade earned about $5,425 profit or about 10% of the planned capital in 46 days.*
* The percentage returns shown above are the result of the real-time, hypothetical trades as tracked in the Options Trading for Income by the Guidelines weekly webinars or the results of backtesting. Trades are real-time simulated trades or have been backtested. Simulated trades and backtested trades are believed to be represented as accurately as possible, however, live results may have been different. This summary is shared as an example for educational purposes ONLY, it does not imply that the information stated is accurate nor that it is possible.