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Tackle Today: Cash flow with options

September 10, 2020

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Learn to sell premium


One of the most popular tactics used in the options market is to sell premium to generate cash flow.  When you sell an option, or an option spread you receive a credit to your account.  These strategies are known as ‘Theta’ positive strategies.

Last night, during the weekly webinar, Coach Tyler did a deep dive on how he sells premium in this market condition which happens to have high Implied Volatility (IV).  If you have not watched it, catch the replay below it is a valuable hour of education.

As markets adjust, trader’s who have a diverse playbook can adjust with them.  Over the course of years of trading, you will find yourself focused on Delta trading in certain markets, Theta trading in certain markets and Vega trading in other markets.

If you’ve not studied your Theta strategies yet, take the time to review the Tackle Playbook and brush up on your rules: https://tackletrading.com/store/tackle-trading-playbook/

Some trader’s find that selling options for cash flow is the perfect trading plan for their account.  Other’s use it when the opportunities are right in conjunction with their other systems.  Whatever your personal trading plan is, it’s important to know how to execute these strategies properly.


Chart of the Day

AAPL Daily Chart

During last night’s webinar, Coach Tyler used AAPL as an example.  It’s in a bullish retracement pattern, and premium sellers would look for cushion from the current price to set their strike prices. 

Video of the day

How to sell premium in a High IV Market

Coach Tyler teaches how he sells premium when Implied Volatility is high in this webinar.  Watch the recording.

Traders Lounge 11 AM 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 8:30 PM EST

Held every Thursday before Friday’s option contract expirations, this show helps you perfect your favorite cashflow strategies.

Halftime Report 12:30 PM 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.

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