The winning trade episode 78 will demonstrate how to win when the market is going through a volatile bearish period with extremely large moves. The X4V22 trade* handled it very well!
Click here or in the video to take a look at how it turned out!
The X4V22 is one of three primary trading structures within the X4 Training System. It is designed to maximize results in bearish bias, market neutral conditions. This options trading strategy is a bit more active and complex than the other X4 options trading strategies.
Returns of this trade: This trade earned about a 9.8% on planned capital in extreme market conditions.*
Description of this trade: The X4V22 is a bearish bias, market neutral income strategy designed to be used on the Standard and Poor 500 (SPX) index.
Minimum Capital Required: $3,500 per trade
Example size: $35,000 planned capital trade
Profit Target: None. In general, I’d expect an average good month to be about 10% of planned capital
Exit Loss Trigger: 7.1% of planned capital or $2,500 for this example
Entered Trade: 77 days to expiration; Usually entered as butterflies with a call option
Trade Duration: Will exit when the expiration month, two cycles out, is 77 days to expiration, unless one of our risk management rules happens which indicates to end the trade earlier than that.
Trade Adjustments: Yes
Overlapping Trades: Yes
I love this trading strategy because: Our maximum capital in the trade was around $9,000, so at one point we were actually up about 40% of that capital. It is unusual to get this size return on invested capital in a market neutral strategy, where we were completely non-directional in a market with very high volatility and extremely large point moves. That is incredible!
This rule-based strategy has a minimum capital requirement is $3,500 and takes less than 15 minutes a day to manage. Click here to learn more!
It is incredible how the extreme market conditions didn’t stop out this trade and those that follow the X4V22 trade during the Options Trading for Income by the Guidelines webinar got to see it all. Consider joining us each week!
Returns of this trade: This trade earned about 21% of planned capital in 47 days.*
Returns of this trade: This trade earned about $7,951 profit or about 23% of the planned capital.*
Returns of this trade: This trade earned about $3,500 profit or about 10% of the planned capital.*
*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.