Income vs Wealth Building
The Consistent Options Income trade that was published in 2008 was all about trying to create a high probability strategy that could turn accumulated wealth into a regular monthly income. However, I have had many inquiries over the years about how one could accumulate the wealth to begin with. The Guns & Butter trade is my answer to that question. It is how I attempt to accumulate and grow wealth. The perspective is longer term and the trading approach can put a lot more money to work. If you are looking to compliment your income trading approach or just want to put some money to work, this is a great strategy that should outperform the indexes over time. It is also very easy to manage monitoring as little as once per trading day.
Consistent Options Income Strategy
Objective: Income
Highest Probability
Monthly Perspective
Guns & Butter Trade
Objective: Wealth Building
High Probability
Longer Term Perspective
Put More Capital to Work
Low Maintenance
Easy to Trade and Manage
Guns & Butter?
In the world of Economists, the Guns & Butter Model attempts to describe the relationship between a nation’s spending on the military and it’s spending on civilian goods.
A nation’s objective is to strike a balance that provides for a prosperous yet secure economy.
In a Trader’s Economy, we want to strike a balance between holding financial assets (Guns) and selling premium (Butter) so as to provide a prosperous yet secure portfolio.
Lock & Load…
Wax On, Wax Off
We Need to Change the Way We Think About Our Position
Unburden Ourselves From the Myths of Conventional Wisdom
Control What We Can Control
Accept the Real Risk at Trade Initiation
The Market Rewards Risk Takers
Manage the Short Options Around Our Assets in a More Efficient Manor
There is a Better Way
What is the Guns & Butter Trade?
Long and/or Short Stock Positions
Options to Enhance Returns
Sell Calls to Lower Cost of Long Stock Positions
Sell Puts to Increase Selling Price of Short Stock Positions
But How Do We Manage It More Efficiently?
An Intelligent Options Adjustment Approach to Improve Returns
Improved Performance Compared to Conventional Covered Strategies
Avoid the Traps Set by the Covered Call Myths
SIZE: 110 MB
