When was the last time you made a 100% winner in 4 hours?

Enter the world of options trading. While you may know what options are, the basics anyway. You may not know how to maximize your profits using complex options spreads. That’s where the experts at TickerTank come in.

Option spreads include Verticals, Iron Condors, Butterflies, and Straddles and Strangles. Of course you can use directional singles (just buying a call or put) as well.

Not all option trading is aggressive. Options can be used to hedge or as income generators. Right now, let’s focus on how they can be used aggressively for big profits:

Verticals: Using two options to make a vertical, you can guarantee you won’t lose more than X dollars on the trade, no matter what happens to the stock. The max gain is also predetermined, giving you an easy ratio to look at. Max gain vs Max Loss. When we get aggressive with verticals, we’ll often have a 4 to 1 ratio with a 30-50% chance of success.

Iron Condors: Usually used as an income generator, Iron Condors combine two verticals and can be used aggressively, if played right. Often we’ll use an IC right before a company reports earnings. Our experts read the open interest and explicit pricing information to determine the most likely price move after earnings. We then find the best IC to capture massive time premium decay. We’ll often have 1 to 1 risk/reward trades with 60-75% chance of success.

Butterflies: Using three option trades, butterflies attempt to pinpoint a stock’s price on expiration day. The closer you get, the more you make. Often times, we’ll find max pain trades that have an unusually high percentage of success, upwards of 85% that offer reward to risk ratios of 1 to 1 in only a few hours! Longer trades can get as high as 10 to 1 with success rates hovering around 25%. Butterflies can be big money makers.

Straddles and Strangles: Have you ever just known that a stock was about to move big but didn’t know which way? Maybe it was an earnings report or other big news. Or maybe it was bouncing around wildly and about to break out. Straddles and Strangles take full advantage of these kinds of moves. With limited risk and unlimited gains, S&S are not only fun, but can make your year. Knowing where to find a good S&S trade is the first step: TickerTank.

Our Options Trading program utilizes all these strategies as well as income generating trades. It can be purchased alone or included in the price of our TickerTV Trade Room. View all membership options.

Open a thinkorswim by TDA account today!