My Step-By-Step Approach to Safely Collecting Monthly Income

In my upcoming webinar, I will not discuss the fiscal cliff, implications of Obamacare or the European debt crisis. I will not discuss my thoughts on Apple going back to $500 or higher to $1000. I’m not going to pretend I know.

And quite honestly, I don’t really care.

What I will discuss is how I collect income, not through dividends, but through an alternative method that is based on a Nobel Prize winning formula. The approach is based on pure statistics (mean-regression, probabilities, binomial models), not the emotional gut instincts that most investors use. I use mathematical science to make my investment decisions, and best of all I do it in a clear and concise way that is easy for investors to grasp.

My step-by-step approach is surprisingly simple. Of course, there are a few techniques that need to be learned, but that’s the case for most any type of investment strategy.

Again, this might seem like a far-fetched idea to some. But when most, if not all, professional options traders use the same strategy, you can safely say that the strategy works. And the only thing that separates professionals from the option newbie is technique.

And that’s where I come in. 

Over the years, I’ve tried every options strategy imaginable … from the simple to the complex. Most investors, particularly those new to the game, think the better strategies are more complex. Talk to any professional options trader, though, and they’ll tell you to keep it simple. Complicated systems lead to stressful, emotional trading. And that’s essentially gambling.

As famed trader John Carter states, “It is important to remember that there is no need to spend wasted years looking for complicated setups or the next Holy Grail. There are very simple setups out there to use.  Some of the best traders I know have been trading the same setup, on the same time frame, on the same market for 20 years.  They don’t care about anything else, and they don’t want to learn about anything else.  This works for them, and they are the masters of this setup. They have nothing else coming in to interfere with their focus.”

This is why I encourage all investors to start with a basic, profitable and above all safe strategy. Because if one of the simplest strategies is the choice for options professionals, why bother learning anything else?

Many beginners start too quickly, expecting to make a fortune (I did!). Statistics say that 90% lose their shirt. Call it "school fees" if you like, but education does not need to be so expensive. I’ve found it better to start with a moderately profitable, simple strategy, and then expand to a variety of methods that require a bit more skill.

There is one key concept that is absolutely critical to being successful at options trading:  TIME DECAY. This is the secret monster lurking behind every option trade. Learn how to keep this monster working for you, not against you.

And this is exactly what I will discuss in my upcoming webinar, “My Step-By-Step Approach to Safely Collecting Monthly Income”. Join me tomorrow at 6 pm EST for what should be an enlightening discussion that will hopefully lead to prosperous investing in the not-so-distant future.


Andy Crowder

Editor and Chief Options Strategist

Options Advantage and The Strike Price

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