The Winning Trade Episode 80 follows an M3 trade as it expertly maneuvers the market. We are trading implied volatility with the M3 trading strategy and loving it!
Click here or in the video to follow along for the win!
Description of this trade
The M3 was designed in 2006 and is the most time tested, proven 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
Duration: Up to 56 days
Adjustments: Yes. Rolling and verticals
Overlapping Trades: Yes
Why do we love this trading strategy? It has continued to perform well over an extremely wide range of market conditions for over 15 years!
Follow this trade!
The M3 trading strategy is demonstrated on the Options Trading for Income weekly webinar and it is an amazing learning opportunity for traders. You simply cannot find that many years of detailed trade by the guidelines examples anywhere! And you can gain access to all of these recorded archives by simply joining our PRO or GO memberships. 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 types of market conditions.
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.*
Returns of this trade: This trade earned about $5,900 profit or about 12% of our $50,000 planned capital in 46 days.*
Returns of this trade: This trade earned about $6,887 profit or about 14% of our $50,000 planned capital.*
Returns of this trade: This trade earned about $5,500 or about 11% profit in 31 days.*
Returns of this trade: This trade earned about $5,050 profit or about 10% of the planned capital.*
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.