Tag Archives: option premium
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Best Iron Condor Strategy

Iron Condors and Credit Spreads are ideal for conservative investors seeking recurring income. Here are the 9 “The Monthly Income Machine” SaferTrader.com screening criteria to identify the best Iron Condor and Credit Spread candidates.

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Covered Call Income – Extra Earnings From Stocks You Own

Chances are you know that elemental sodium and elemental chlorine are both absolutely deadly. Put some sodium in water and it immediately blazes into white-hot flames. Inhale a few breaths of 100% pure chlorine (the stuff you pour into swimming pools is only 2% chlorine), and you will have no further concern about the national […]

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Credit Spreads & Iron Condors During Low Volatility Periods

From time to time, the markets will begin a period of unusually low volatility. When this occurs, it can be more difficult to identify attractive income-generating credit spread trades that meet “The Monthly Income Machine” premium requirement at the strike prices the prescribed distance from the underlying stock, ETF, or index. So let me weigh […]

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Credit Spread Income: Take Profit Early or Wait Until Expiration?

As it should be, the main trade management focus of “The Monthly Income Machine” is on properly handling the occasional position going the wrong way. But we should also consider the pleasant matter of what to do with the winners – allow them to expire worthless so that we realize the entire trade profit, or […]

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If You Own Stocks, Do Not Leave Income On the Table!

GUEST BLOG By: Stephen M. Bean, M.A. Owning stock certainly has its “ups and downs” (literally). If you own some, I’m sure you’ve likely noticed. Lee’s white paper entitled “More Money From Stocks You Already Own! certainly tells it like it is. I strongly suggest that you read it. Plus, it’s free. Yup, the fact […]

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Account Money Management – Avoiding Trading Account Death

Okay, perhaps the title is a bit over the top. But, if it gets your attention – for real – it’s worth it. Most investors – especially conservative ones like those using “The Monthly Income Machine“- know that controlling risk is more important to trading account health than trying to maximize profit. The problem is […]

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Short a Put Option – You’ll Get Paid While You Wait For a Lower Stock Price

Let’s be clear. Fellow Philadelphian and cheese steak aficionado Jim Cramer may be a great stock picker and market analyst/strategist. But one ingredient SaferTraders will love is missing from his recipe for establishing a stock position. Like many market scholars, he advises investors to initiate a stock position with only part of the total amount […]

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Option Stop Loss Orders? There Are Often Better Choices

Over my 30 years as a broker and investor, I have often heard stock, options, and futures traders (who should know better) and brokers (who REALLY should know better) make the assertion, “I never use stop orders” or the sometimes foolish pronouncement, “I always use stop orders.” My guess is that misunderstanding the stop order […]

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SPY vs. SPX Options: Pros and Cons of ETF vs. Index Options

After 30 years as a stock broker/manager and market educator, I know of no better way to safely generate substantial monthly income (up to 8-10%/month) than through the specialized technique detailed in the book “The Monthly Income Machine” That said, the entry and exit “rules” for these income trades differ somewhat depending on whether you […]

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