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Options Income Blueprint

Watch Michael Shulman Trade Weekly Options Live!

Next Lesson: Click the Continue Button Below to
Get Your Complimentary Weekly Options Cheat Sheet

 

 

 

How To Read This Track Record:

 

Cash In -- Instant Cash Collected at the order execution
Cost -- Cash Required to Close a Trade (If applicable)

If Cost = 0 That means the option expired WORTHLESS and we kept 100% of the Cash In

Every single position in 2012 has produced INCOME!

Some weeks, Michael wil find 2 trades perfect for the Weekly Option Selling Strategy;
and in others he may only find one.

THE KEY is to consistently produce income, week after week.

That's precisely what Michael is doing -- over $560 in total cash in just 9 weeks,
which is an average of $62 per week.That could produce over $3,000 in total income in 2012.

 

You can also download our Full 2012 Track Record
(Weekly and Monthly Options) Right Here


Downloads

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33 Comments

I came across this service when searching for weekly option education..This sounds interesting how do I get more information
fc5849@aol.com

I can only trade from my IRA account, which does not allow me to sell naked options. Tell me some stretagies I can use with my IRA account.

When I start to use your excellent strateries producing income, I will become a subscriber as soon as I can pocket my returns and put that towards my subscription to Income Investor’s Blueprint!

How much the required margin of trade for example we sell 1 contract at $ 1.35, isn’t be your concern?

  • support

    When selling options in this program you’re using what is called a “cash secured” option (that means you have the cash in your account to cover the value of 100 shares of the stock in case you are “put” the stock). So if you’re selling a $43 Put, for example, you need to have $4300 in your account to sell one contract (one contract = 100 shares of stock at the strike price specified). Because we’re selling on Wednesday and closing out a weekly options trade on Friday, margin is not a concern because we have more choices available to protect our cash position, including buying back the option at a profit; rolling the trade to another week/month (and collecting more income); or, being put the stock and turning around and selling covered calls against it (which gives us even more opportunities for income).

if you get 42 dollars for selling 2 weekly puts, how much commission is there. wouldnt you lose money?

  • support

    Typically commissions range from $9.95 to $14.95, so no, you wouldn’t lose money selling 2 puts (OptionsExpress for example has flat pricing for 1-10 contracts of $12.95).

What trading platform would you recommend with an account of say 30 – 40K? I am currently with Trade Station. The options trades only cost me $1 each, but the cost of the platform is over $100 per month. So with a smaller account 25% of the weekly trade profits would be taken just to keep my platform.
Thank you,
Mick

  • support

    YOu might consider ThinkorSwim, or if you’re averaging out your trades, OptionsXpress (higher commissions, but with your account size, you’d be able to sell multiple contracts per trade thereby negating the impact of commissions but also trading out the cost of TradeStation).

  • Consider MBTrading.com… .95 cents per contract, no cover charges…Great Deal for this type of trading.

Who is a good reasonable brokerage?

  • support

    ThinkorSwim, OptionsXpress (which Michael uses) are quality brokerages.

selling a single contract, at o.18 cents, seems pointless, when commission is at 10-12 dollars…..correct

  • support

    Not necessarily – that contract at .18 cents = 18.00, meaning you’re still cash positive at $6-$8 — for a single contract.

    The objective is really to be able to sell 2 OR MORE contracts (of a single option) per week, in which case the commissions are a smaller percentage of your profit.

Doesn’t the commision on one option contract reduce to profit a lot?

  • support

    If you only sell one contract and depending upon the commission you pay, then yes it would.

    We use one contract in our trade records simply to show the value and return of the options sold. Every investors account will differ, and wherever possible, you’d want to sell multiple contracts specifically so that commissions don’t eat up your gains.

My question- Are we obligated to buy back the option if it goes up before it expires on Friday or just let it go worthless? Thanks.

  • support

    You are not obligated to buy back the option – you may choose to do so in either of the following circumstances:

    1. You reach a pre-determined profit target. For example, if you sell a put at .50 (or, $50 per contract) and the put’s value is .25, you can buy back the option to close the trade and keep the difference (.25).

    2. If a trade moves against you, you can buy back the option to close the trade (that would be at a loss, but watch for our upcoming Roll and Recover strategy).

    3. If the option is essentially worthless by expiration Friday, there’s no need to buy it back since the expiration closes the trade automatically (in which case, you keep 100% of the premium and you don’t have to pay a commission to close the trade).

Only one thing: the brokerage on each of these plays would be 10.76 with Ameritrade, a total of 172.16, so you would have cleared only 387.84. That’s $43 per week. Still doing ten contracts would certainly have produced a good return.

  • support

    Yes, and as your account grows, your ability to then trade multiple contracts increases – thereby increasing the weekly return in income.

    It is a PATIENT income strategy. This isn’t get rich overnight. Our focus is low-risk, high probability trades that generate income we can keep. Commissions will always be a factor – the larger the starting account, the less of a factor they are. The smaller the starting account, the more of a factor – but a smart investor will reinvest gains to grow their account first, THEN create income from it.

GREAT SYSTEM ! HOW ABOUT OPTIONEXPRESS COMM OF $16 EACH TRADE ! ABOVE CHART WOULD HAVE COST YOU $256.00 !! $ 595 -256 = $ 339.00 !!! IS THERE A CHEAPER OPTION FEE SOMEWHERE !!!

  • support

    There are less expensive options brokers out there – remember that we’re only sharing the results of 1 contract per trade – if you sell 2,3 or 4 contracts, your commission is typically (not always) one price for all contracts sold and you therefore can multiply that $339 by 2,3 or 4 times.

    Smaller accounts have to weigh the return (premium times 100) versus the cost to place the trade and available cash to back the trade. We explore this a bit more in depth in the upcoming videos.

VERY INTERESTING COMPREHENSIVE REVIEW OF ONE SIDE OF TRADE. SOUNDS TOO GOOD TO BE TRUE AND PROBABLY IS. HOW ABOUT ADJUSTMENT DETAILS TO THE SAME STANDARD.
REGARDS K.L.YOUNG

  • support

    We take low-risk, high probability trades. We’ve been successful consistently because we stick to that process. Note, “too good to be true” are those people telling you they’ll turn $1,000 into $200,000 in six weeks.

    This plan is showing you how to generate consistent income – REALISTIC income at that. It is precisely what is NOT taught to today’s investors and why so many have trouble maintaining their standard of living.

    I don’t know what “adjustment details to the same standard” means, so I apologize that I can’t respond to that part of your comment.

Ditto on commissions. Do you really pay 12.95 per trade of 1, 3, 5 contracts?

  • support

    Michael’s account is with OptionsXpress and yes, he pays $12.95 per trade.

    That’s why he was trading more contracts, so that the commission doesn’t eat the cash gain at the outset of the trade.

Can I show this to my broker?

  • support

    Would you really want to?

  • I did show it. Her response was these are stock options she does not deal with. What kind of an account how much and where?

How do commissions figure into this when the option premiums are this low?

  • I’m also an Optionsxpress customer. You can request lower commissions after you have traded with them. I pay $9.95 a trade.

  • I also have an OptionsXpress account and you can negotiate with them on commissions price. I pay $9.95 for up to 10 contracts.

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