Consistent Options Income – Guns and Butter
What You’ll Learn In Guns and Butter
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 and 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
Readmore about: Consistent Options Income
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