This trade with a high historic win rate earned about $1,830 profit using about $27,000 in capital. Calculating with the full $35,000 planned capital that results in about a 5.2% profit in 28-days.* The historical win rate for this trading strategy is 80%! Take a few minutes to watch this video to see how this trade contributed to the high win rate!
Description of this trade: It is a shorter-term broken wing butterfly style strategy designed to be traded on the Russell 2000 (RUT) index. Follow this trade on our Options Trading for Income by the Guidelines weekly webinars.
Minimum Capital Required: $3,500 per trade
Example size: This is a 10 lot which means there are 10 butterflies and the planned capital or the maximum amount we would like to put in the trade is about $35,000.
Example loss trigger: $250 per butterfly or $2,500 in this example
Profit Target: None. In general, we expect about 5.5% return on planned capital per month.
Exit Loss Trigger: $250 per butterfly or 7.1% of planned capital
Entered Trade: Varies depending on when the previous trade was exited. For this example, it is started about 30 days to expiration, or to be more precise, when the previous month expires.
Trade Duration: 60 days
Trade Adjustments: Upside and a downside adjustment strategy
Overlapping Trades: No
Historical Win Rate: 80%
Why do we love this trading strategy? It is a shorter-term, higher-yielding trading strategy that can be traded with as little as $3,500 per trade. The strategy does not overlap, meaning there is only one position to manage at a time which makes the position extremely simple to manage. Oh did I mention this trade has a high historic win rate? 🙂
See all THE WINNING TRADE episodes at http://www.TheWinningTrade.com
*The result shown is from real-time, hypothetical trades such as those shown in the Options Trading for Income weekly webinar. Simulated trades are believed to be represented as accurately as possible, however, live results may have been different. The result is shared as an example for educational purposes ONLY.