9 Minute Read

Tackle Today: Cash Flow Expectation (CFE)

January 4, 2019

By | No Comments

≈ How much can you earn? ≈

If you are a cash flow trader, or a theta trader, you probably have spent some time calculating Return on Investment (ROI) percentages and potential returns.

In our Tackle Theta Spreadsheet that is a staple amongst active Tackle members, we use a concept called Cash Flow Expectation (CFE). CFE is essentially your potential ROI if the trade is held for a 30-day period. Our standard CFE is calculated over 30-day windows, because let’s face it, many traders build their systems to generate monthly returns.

When you are researching potential Covered Call returns, you should be aware that certain levels of CFE are expected when trading good Covered Calls. The ‘sweet spot’ is somewhere between 2-4%. Anything over 6% can indicate higher risk and require higher skill to manage. Anything lower than 2%, might be more conservative, but you may want to find better returns in other candidates.

Learn to assess CFE when using any strategy, and particularly the Covered Call. This month at Tackle Trading, we’ve released the Tackle 25 2019 edition with a few extra bonus lists. There’s also a great video system for you to learn from. Get in the game and build your Cash Flow.

Chart of the Day


The picture above shows the five benefits of the Covered Call strategy. The Cash Flow Expectation (CFE) fits into the #4, “Create Cash Flow”. These benefits are explained in great details in our Tackle 25 2019 Edition, available for Pro Members as well as a standalone Premium System here.

Video of the Day

What is Theta? (BONUS: FREE Options Greeks Guide)

In this video, you will learn what the Options Greek THETA is and how it can be used in your trading routine in order to perform better in the market.

Today’s Lineup

Traders Lounge 11am EST

Join the coaches in this live lounge, ask questions, discuss ideas or just sit back and listen to veteran traders discuss market conditions.


Cashflow Club Replay

If you missed last night’s episode where Coach Hiro talked about Naked Puts on Commodities or would like to watch it again, check it out here.

Watch Replay

Halftime Report 12:30pm EST

The Halftime Report starts at 12:30 EST and covers what news is driving the market, chart analysis from the movers and shakers of the day and fun in a way that only Matt and Tim can deliver.


Market Recap 4:30pm EST

The Market Recap is designed to give you a quick overview of the day that was. While brief, this report is designed to cover all of the major events that drove the markets that day and help you plan for the trading day ahead.


Tackle Trading: Financial Freedom is a Journey. Sign up now for a 15-day free trial.

Financial freedom is a journey

The Tackle Today series is brought to you by Tackle Trading.

Sign up now and gain unfettered access to all of the quality content and powerful Scouting Reports that our Pro Members enjoy for 15-days absolutely free with no strings attached and let us show you what your trading has been missing.

# Sign up now for a 15-DAY FREE TRIAL #

Legal Disclaimer

Tackle Trading LLC (“Tackle Trading”) is providing this website and any related materials, including newsletters, blog posts, videos, social media postings and any other communications (collectively, the “Materials”) on an “as-is” basis. This means that although Tackle Trading strives to make the information accurate, thorough and current, neither Tackle Trading nor the author(s) of the Materials or the moderators guarantee or warrant the Materials or accept liability for any damage, loss or expense arising from the use of the Materials, whether based in tort, contract, or otherwise. Tackle Trading is providing the Materials for educational purposes only. We are not providing legal, accounting, or financial advisory services, and this is not a solicitation or recommendation to buy or sell any stocks, options, or other financial instruments or investments. Examples that address specific assets, stocks, options or other financial instrument transactions are for illustrative purposes only and are not intended to represent specific trades or transactions that we have conducted. In fact, for the purpose of illustration, we may use examples that are different from or contrary to transactions we have conducted or positions we hold. Furthermore, this website and any information or training herein are not intended as a solicitation for any future relationship, business or otherwise, between the users and the moderators. No express or implied warranties are being made with respect to these services and products. By using the Materials, each user agrees to indemnify and hold Tackle Trading harmless from all losses, expenses and costs, including reasonable attorneys’ fees, arising out of or resulting from user’s use of the Materials. In no event shall Tackle Trading or the author(s) or moderators be liable for any direct, special, consequential or incidental damages arising out of or related to the Materials. If this limitation on damages is not enforceable in some states, the total amount of Tackle Trading’s liability to the user or others shall not exceed the amount paid by the user for such Materials.

All investing and trading in the securities market involves a high degree of risk. Any decisions to place trades in the financial markets, including trading in stocks, options or other financial instruments, is a personal decision that should only be made after conducting thorough independent research, including a personal risk and financial assessment, and prior consultation with the user’s investment, legal, tax and accounting advisers, to determine whether such trading or investment is appropriate for that user.

Chart Modal

Tackle Trading

Book a FREE Consultation

Sign up for a free consultation to build your Educational Plan.