Despite the crazy market volatility the V32 trade tripled the expected return in this Winning Trade episode. This trade made a whooping 17% return in 29 days!* It is exciting to note that this trading strategy is up for the year despite the crazy market volatility we have been having. Take a few minutes to click here or in the video below to see how trade produced that kind of profit.
Description of this trade: The V32 is a fairly simple options trading strategy that is easy to manage and can be traded with as little as $3,500 per 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 in a winning month.
Exit Loss Trigger: $250 per butterfly or 7.1% of planned capital
Entered Trade: Varies depending on when the previous trade was exited. With Options Trading for Income examples, it is started either 30 days to expiration or when the previous trade expires if required to avoid overlap.
Trade Duration: 30 days
Trade Adjustments: Upside and a downside adjustment strategy
Overlapping Trades: No
Historical Win Rate: 80%
Trading Strategy Notes: The V32 is what we call a positive Delta strategy. Meaning if the trade goes negative Delta we are going to make an upside adjustment to make it positive Delta and we are going to do that by rolling in the upper long strikes. Also to keep our capital under control we are going to roll up the lower strikes.
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. Did I mention that this trade tripled the expected return? 🙂
See other V32 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
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