If you’re someone who wants to create a serious business out of options trading, you need more than a set of rules. That is why I came up with the M3 trading system. Let’s face it market conditions change and no single set of rules is going to be able to do well all the time. The last thing you need is to finally decide to go full time with your trading, have conditions change and then go out of business.
So I decided to come up with a way to educate traders on how to manage their risk in complex options spreads so I could help them improve their game.
The M3 is not just a not a “trade in the box” where you blindly follow a set of strict rules, it is a market neutral trading system that I have been developing since 2011 specifically designed to teach and educate options traders how to identify and control risk in their positions.
The M3 system gives you the tools you need to help you understand your position and then explains how, why and when to apply those tools to help you become a better trader.
Click here to see the many other M3 configurations that have been developed as well.
Learn to trade this strategy in approximately five, one-hour personal coaching sessions.
It could take more or less time to learn this trading strategy. It largely depends on the individual trader’s knowledge and experience. Click here to learn about personal coaching sessions for the M3 trading strategy!
All our one-on-one coaching sessions are recorded and you will have access to those recordings, just as you would an online course.
A big plus to personal coaching sessions is the interaction. You get all YOUR questions answered!
Trade results since 2012 for this trading strategy are accessible by the PRO and GO members who can review the Options Trading for Income by the Guidelines session recordings and research the available trade logs to fully understand the context of the results.
For examples of this trading strategy in action, please view The Winning Trade episodes below:
Episode 89 – M3 Trading Strategy
Returns of this trade: This trade had a profit of approximately $3,910 or 7.8% on planned capital. The maximum capital in the trade was approximately $28,000 which would make the return approximately 14.6% on the actual capital used in the trade.
Episode 80 – M3 Trading Strategy
Returns of this trade: This trade earned approximately $5,135 or 10.3% on our planned capital in 49 days!*
Episode 75 – The M3 Trading Strategy
Returns of this trade: Trade 1 returned about 10.9% planned capital in 32 days and Trade 2 returned about 7% of actual capital in 56 days.*
Episode 66 – M3 Trading Strategy
Returns of this trade: This trade earned about $5,900 profit or about 12% of our $50,000 planned capital in 46 days.*
Episode 50 – M3 Trading Strategy
Returns of this trade: This trade earned about $6,887 profit or about 14% of our $50,000 planned capital.*
Episode 39 – M3 Trading Strategy
Returns of this trade: This trade earned about $5,500 or about 11% profit in 31 days.*
Episode 31 – M3 Trading Strategy
Returns of this trade: This trade earned about $5,050 profit or about 10% of the planned capital.*
Episode 21 – M3 Trading Strategy
Returns of this trade: This options trading strategy earned about $5,534 profit or about 11% of the planned capital of $50,000.*
Episode 14 – M3 Trading Strategy
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. These recordings and results are shared as an example for educational purposes ONLY, it does not imply that the information stated is accurate nor that it is possible.
I am practicing many of these trades. I understand the basic mechanics. My biggest concern is the fill price versus what the ONE software models. The longer expirations have huge price ranges (+50-100pts ) How realistic is the midpoint give or take a few dollars?
I believe the appropriate question should be: Can I expect to get fill prices live trading similar to what we see in ONE?
The answer to that question would be two parts…….
On a trade for trade basis actual fill prices when live trading “could be” significantly worse or significantly better than what ONE converts at.
On an “average fill price over extended periods of time” basis, the answer would be a resounding YES. Based on trading this strategy as well as many other complex options strategies we tend to find that, “on average over the course of hundreds of trades”, in live execution, we generally do better than randomly convert that trade in ONE at our checkpoint time.
Regarding the actual question which is a different subject than the topic mentioned…… How realistic is the midpoint give or take a few dollars?
This is a perception that depends on what you call midpoint. Understand that instantaneous mid prices fluctuate often quickly and sometimes drastically between unrealistically high numbers and unrealistically low numbers. Therefore, the number you are seeing at any given instant may or may not be realistic in regard to actual market price. The perception of the trader regarding whether or not he is filling near mid-price will be dependent on the how the trader mentally anchors on these mid-price value fluctuations.