SLINGSHOT Credit Spreads Options Signals for Cash Flow

Credit spread option signals? Oh yes. And I can be a great new way to trade.

Why is that?

Because the way we do credit spreads gives you an edge with better reward to risk ratios so you can net out some potential extra paychecks per month. That’s the real goal.

Ultimately we are going to generate signals that are swing trading signals that are optimized for credit spreads. We look to trade weekly options credit spreads in order to catch swing Trading momentum while having premium decay on our side.

  • The goal of this subscription service is to try and help folks make extra cash flow by giving them credit spread swing trading signal ideas for cash flow generation
  • With credit spreads we can do .5 and 1 point spreads aiming for close to 100% returns
  • We will also have positions with better math looking to coordinate better reward to risk rations of roughly 2 reward to 1 risk of which you can use credit spreads or debit spreads (which are essentially the same thing – it’s just that “credit spreads” sounds better, like ‘oh I’m getting a credit’ but when you buy a debit spread and it goes ITM then you’re also filling out to get the full profit)
  • You need to understand Credit Spreads characteristics, rewards and risks.   See our Swing Trading with Credit Spreads Course for More Information.   Talk to your broker and work with them on what to do when one side gets exercised and how to avoid expiration between the strikes because you’ll need to cover the stock if that happens, having the funds there for it.
  • So with credit spreads you can put up far less cash to make 100% – 200% returns

 

Here are the results from the System on AAPL.  Explanation:  if you have roughly a 1:1 risk to reward ratio credit spread an can net out 30 winning trades then your net profit is “30”.  So if you invested $1000 per trade then $30,000 would have been your profit.  If you invested $10,000 per trade then $300,000 would have been your profit.  If you invested $100,000 per trade then $3,000,000 would have been your profit.

Why Credit Spreads?

  • You can make a large percentage move based of a tiny move in the stock.
  • If you want a 1:1 reward to risk ratio usually you need to go slightly in the money, very slightly.
  • You can play high flyers without having to pony up hoards of cash paying for all of that exorbitant premium
  • You can take advantage of highly rapid premium decay with same week weekly options, or even the 2nd week out.
  • With .50 strikes you can make large percentage gains with hardly any work in the stock
  • WE don’t sell credit spreads (or buy debit spreads) for the sake of premium decay only; that’s for losers.  We swing trade credit spreads WHILE putting premium decay on our side for an extra bonus!  This is a huge fix to most’s folks credit spreads ills.
  • We aim for good risk to reward rations
  • One trade you can aim for near a 1:1 risk to reward ration
  • On a 2nd trade we look for a 1:2 to even a 1:3 risk to reward ratio if we can.
  • Math is our friend in trading!  No more stupid “odds” garbage selling out of the money credit spreads for 20:1 20 risk to one reward or some insanely terrible ratio that has been popularized in the past.
  • We want to play stocks, ETF’s that don’t have bid ask spreads either.

 

AAPL 2016
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W 34 T
W 4 L
W 30 W
W 88.24% W
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W END 2016