The #1 Way To Make Weekly Income With Weekly Options Jack Carter 1
Disclaimer: The risk of loss in trading options can be substantial, and you should carefully consider whether this trading is suitable for you in light of your current financial condition. Unique experiences and past performances do not guarantee future results. Results are non-representative of all clients; certain accounts may have worse performance than indicated. Your trading results will vary. Because this is considered risky, you should only use risk funds. If you do not have extra capital you can afford to lose, you should not trade this strategy. No safe trading system has ever been devised, no one can guarantee profit or freedom from loss, and you should only trade with money you can afford to lose. Also, no past performance of any trading system or methodology is necessarily indicative of future results. 2
The #1 Way To Make Weekly Income With Options A few years ago, the CBOE created a new, easy to trade option called weekly options. Weekly options are like regular options, but they expire every week. That's the huge difference and pretty much the only difference. With weekly options, you could potentially make 2%, 5%, 8%, 15%, or more every week on one weekly trade. You can do as many of these simple weekly trades as you want to create weekly income or a huge retirement account, or both. You can trade weekly options with small accounts or large. You can trade with just $3,000 or $100,000 or even $1,000,000 or more. Best part is you can get paid every Friday. Plus, it's proven you can double your returns even with some of the option strategies you use now. You might be asking yourself, "If it's so hot, why haven't I heard about it before?" The reason is weekly options trading strategies didn't work very well before now. They didn't work very well before now because of two reasons: Reason 1. Weekly options came out in 2010, and there was not enough trading volume in weekly options then. However, now it's 2016, and weekly options make up about 20% of all options volume. The weekly options on Google and Apple make up about 4o% of all the options traded in those two stocks. The second reason you may not have heard about this before now is there were not enough stocks with available weekly options to make money in any market conditions. This is a key point. But like I say, now in 2018, they've been adding to the list of stocks that have available weekly options all the time. 3
I'll tell you more about these weekly option strategies in a minute, but first, I want to tell you a secret about myself. My name is Jack Carter. Who am I and why should you listen to me? I have over 30 years and close to $1 billion in trading experience. I was trained at the World Trade Center in 1985. I traded throughout the largest up and down market in history. My record was over $8 million of stock in one day. In my career I've been a stockbroker, a NASDAQ Market Maker, a professional day trader, and a hedge fund manager. But most importantly, I've successfully taught traders from 43 countries to make profit rich trades. I'm not telling you all this to impress you, rather to impress upon you that this is 100% real, not some hypothetical stuff some guy made up but never put any real money on. Now I've discovered what I believe is the biggest trading advantage for the little guy since the invention of the Internet. Let me tell you how the overall options market plays out and why this system works so well. Options are a tool used by professional traders as a "hedge" against a current position. This hedge is mostly for protection. Professional money managers, professional traders, and institutions like large pension accounts use these kinds of hedges. In fact, this is the group that options were designed for. Over 75% of all stock market activity is done by institutions. That's stock and options. In the options market, these institutions buy put and all options as a hedge. 4
However, because there's so much leverage in options huge returns with very little investment lots of average traders, or speculators, take their shot at them. They simply get hooked by the thought of hitting the stock market jackpot. But the hardcore reality is most average traders don't hit the jackpot or anything even remotely close. In fact, they lose untold millions to the small percentage of insiders who know the secrets to trading options for maximum gains with minimum risks. And it's not the average investor's fault. Not at all. Why? Because like many things in business and life, the game is hopelessly rigged in the professional's favor. Before I go on, let me share a quick story with you. I love teaching from experience, even when I get my ass kicked. That's how it was with my very first option trade in November of 1985 when I was a financially broke and desperate rookie stockbroker with Dean Witter. Myself and another idiot went halves on buying some December calls on a stock that he "researched" and "studied" and thought was a "sure bet." We bought the call options anticipating the stock to go up and the value of the option to skyrocket right along with it. I was so sure of this trade that I invested money I would need for an airline ticket to go back home to be with my dad back in Indiana for the holidays. The result? Three weeks of pain and all the money gone. Over the next three weeks, I watched the stock stay at about the same price it was when we bought the call options, yet the call option's price declined a little bit almost every day. Even on days the stock did go up, the call option barely moved at all. 5
And the closer it got to expiration, its value melted like an ice cube on a hot summer sidewalk, until it was worse than worthless. It was worse than worthless because the commission to sell it cost more than the options were worth. I learned some valuable lessons in this trade, lessons that I've profited from over the last 25 years, and lesson that you can profit from too. First one is never invest or trade more than you can afford to lose, because anything can and will happen in the stock market. Second thing is the time decay of options erodes their value enormously the closer they get to expiration. You want this time decay factor working for you, not against you. You want to put time decay on your side in the options market. I lost for the same reason most options traders lose. I bought an option and held onto it till it was practically worthless. The fact is option buyers lose money more often than option sellers. Why? Because time decay makes options expire practically worthless. And the number one reason options buyers lose money is because they run out of time. My weekly options trading system works because it's based on three simple core truths about options. Options truth #1: Most options expire practically worthless. Options truth #2: Options expire worthless because of time decay. Options truth #3: Time decay occurs most in the last week of options expiration. Now with weekly options, you can take advantage of this time decay every week. I'll show you how this works and as I do, I want you to understand a fundamental difference in what I teach. 6
What you'll learn here is based on selling weekly options to take advantage of time decay and putting the advantage of probability on your side. What you will learn here is different from the mainstream options trading world in two major ways. Okay, it's based on what works in the real world. The second reason this is different from mainstream options trading is also the reason this is so reliable and powerfully effective. What I teach you about options trading is based on the underlying stock. Every options investor who loses consistently is looking for options success by analyzing options. That does not work. It doesn't matter what options strategy you use. If you get the underlying stock pick wrong, the options strategy will fail. Get the stock-picking part right and you'll flat out kill it in the options market. That's why the core of what I teach you about options trading is based on the underlying stock, not on options. Now, before I get into this, let me explain the difference between monthly options and weekly options. There's not much difference. Monthly options are listed on almost every stock, though that's one thing. They are listed and traded for months and months out in time. You can even buy and sell long-term options. Weekly options come out every Thursday and expire eight days later, on the following Friday. If you do covered calls, for example, or what they call buy writes or credit spreads, then you can wait 30, 45, 60, or 90 days to get paid with monthly options. With these, you end up with your money tied up for a long time. Weekly options trades last seven days max. In fact, most of the time, I like to get in on Monday, Tuesday, or even Wednesday, so these trades may only last 2,3, 4, or 5 days. 7
And since the options prices decay the most in the last week of expiration, weekly options traders are a dream come true. These things just drop hard and fast in that last week, especially when they're out of the money. Here's a huge advantage to weekly options over monthly options. I don't want to forget to tell you this, because a lot of guys, if you're doing this, you're going to love this. I discovered this little-known fact in a trade I did as a covered call on a stock. When I did this covered call, the yield was great, everything worked out perfect, but when I compared the premium I got for selling one monthly call option against selling four weekly call options, I discovered I could get double my yield by selling the weekly calls rather than the monthly call. Weird but true. You can prove this to yourself on any stock that has available weekly options. If you want to look at this, just pick a few stocks, maybe even some ETFs, then look at the options quotes and you'll see what you could get for selling the weekly calls compared to selling one monthly call. If you add up what you would get for selling four weekly calls versus selling one monthly call, you'll see that it could be the worst I've seen is twice as much. In my case, it was 200% more by selling weekly calls rather than monthly calls. This is on the same stock. That's a little-known fact about weekly options. You can start using that right away. With weekly options, you make even more money, and you get paid weekly. Here's something else that gives you a huge advantage. This is really big. With the stock in this strategy, the stock does not have to go up in price for you to profit with my system. You see, after you buy a stock, only three things can happen... 1.The stock can only go up, 2. Stay the same, or 3. Go down. With my system, you don't need stocks that go up. They can go up, they can stay flat, or even go down by an amount you predetermine. 8
So with my trading system, you make money in two our of three possible outcomes, so even if you are a horrible stock picker, you can still profit with weekly options. The only time you need to make another decision is if you need to unwind the trade. Here's something else you need to know. When stock trading, it's very common to find yourself in a situation where you have to get out, but with my system, you rarely have a trade go against you. This strategy is perfect for the little guy. I say that because the capital required in this first example was only $3,000. And if you're trading a $100,000 account, you can potentially make $8,000 a week with this. Better still is that unlike regular investing, the stock didn't have to go up. It just had to stay at about the same price for five days. There is no other trading strategy on the planet that gives the little guy these many advantages. This same strategy can be used on multimillion dollar accounts. Stay tuned for the next part of the training. 9