THE

OPTIONS
INCOME
BLUEPRINT
THE TOP 3 OPTION STRATEGIES TO GENERATE A
CONSISTENT INCOME EVERY SINGLE MONTH
TRADING JUST 1 - 2 HOURS A DAY

By OptionsWithDavis.com
 OPTIONS INCOME BLUEPRINT

WELCOME TO YOUR
OPTIONS INCOME BLUEPRINT
Alright, alrighty! Congrats on downloading this Blueprint!

I cannot even begin to tell you how excited I am to share these 3

Option strategies with you because just these 3 strategies alone is
enough for you to generate a consistent income just by trading 1 - 2
hours each day.

That’s right, there’s no need to learn 101 different Option strategies.

In fact, if you can just master ONE strategy, it can be more than
enough to generate an income for you every month.

And there’s de nitely no need for you to stare at the screen hours
and hours each day.

We aren’t day trading or scalping. I have much better things to do

than stare at the screen all day like spending time with my family!

In fact, if you just have at least an hour to spare each day, then it’s
more than enough to trade these strategies I’m about to share with
you.

Last but not least, do understand that there’s always risk when you’re
trading the markets.

So it’s extremely important to size your trades properly to ensure that

you’re in this game long enough to be consistently pro table!

Let’s dive into the strategies and may the Options favor you!

From My Family To Yours,

Davis (OptionsWithDavis.com)

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1
1 STRATEGY #1: COVERED CALL

By far the simplest and easiest way to generate an income every

month is by selling Covered Calls.

If you already have at least 100 shares of a stock, you’d be able to

sell Covered Calls to generate an income while waiting for your stock
to appreciate in the long run!

So what exactly is a Covered Call?

A Covered Call is basically selling a Call Option against 100 shares

of stock. If you do not have 100 shares, then it would be called a
Naked Call.

And if you don’t know how to manage a Naked Call trade, then the
theoretical loss can be unlimited!

So if you plan to sell a Covered Call, always ensure you have at least
100 shares of a stock before doing so.

Now, by selling the Covered Call, you’d receive what’s called a

Premium for it.

This Premium is your “income”. And there is absolutely no risk for

you to sell Covered Calls. Why?

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Well, let’s consider two different scenarios.

Scenario 1: Stock Goes Down

First of all, you already have the stock.

You probably bought the stock because your plan is to hold it for the
long-term in hopes it appreciates in price over the long run.

Even if you didn’t sell a Covered Call, you’d still be holding on to the
stock.

But by selling a Covered Call, you now received the Premium that
helped to offset some of the drawdown in your stock position.

For example, let’s say you had bought 100 shares of XYZ stock at
$20.

So your total cash outlay for this position is 100 shares x $20 =
$2,000.

Now, let’s say the stock dropped to $18.

That means the total value of your stock is now worth $1,800 and
you’re sitting on a drawdown of -$200.

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But what if you had sold a Covered Call at the strike price of $23 and
received a Premium of $1.00?

That would mean that you have received $100 in Premium (because
each stock option controls 100 shares).

So although the stock value may have gone down $1,800, you have
received $100 in Premium. So instead of having a drawdown of -
$200, your drawdown is now only -$100!

That means the effective cost price of your stock is actually $19,
instead of $20 because of the $1.00 Premium you received from
selling the Covered Call. This is called Cost Basis Reduction.

Now, imagine if you can continue to collect $100 every month for
selling the Covered Call.

This way, even if the stock went back to the original price you bought
it for, you would already be in pro t because of all the Premiums you
collected from selling your Covered Calls!

Scenario 2: Stock Goes Up

But what if the stock goes up instead and went above your Covered
Call strike at $23?

Well, rst of all, this is good news because you’ve just made money
on your stock position.

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Many people get confused about this because they see a loss on
their Covered Call Option and think they are in a loss.

That’s not true! Don’t forget, a Covered Call position is 100 shares
PLUS a Short Call. That means the overall position is in a pro t.

Now, what happens if the stock goes above your Covered Call strike
price?

One of the biggest fear that many people have when it comes to
selling Covered Calls is having their shares called away if the stock is
above their strike price.

But what many people don’t know is that there is actually very little
chance of getting your shares called away if your Covered Call still
has some Extrinsic Value. I explain it in detail in this video:

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But what if your shares do get called away and you still want to
resume your original stock position after having your shares called
away?

I’ve created a video just for you on this:

Remember, it’s not the end of the world even if your shares are
called away!

But what if you don’t even want to be put in a position where your
stock could potentially get called away?

Then this is where you want to “roll” your Covered Call.

But what exactly does rolling mean?

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Not to worry, I got you covered on this as well as I’ve created not

one, but TWO videos on this!

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Hopefully by now you can see the potential of selling Covered Calls
on your existing shares because it can truly generate a risk-free
consistent income for you every single month.

Now, I know one of your biggest concern still is to avoid having your
shares getting called away.

Ideally, you want your Covered Call to expire worthless every month
so you can just keep collecting the Premiums over and over again
while holding on to your stock.

I hear you. But one thing to understand is that if you sell Covered
Calls long enough, eventually you will have a few of them that gets
assigned.

That’s just part and parcel of trading.

And that’s not necessarily a bad thing because you are making
money after all!

With that said, there are de nitely ways to reduce the chances of
your Covered Calls getting breached in the rst place.

And that’s by being strategic and selective when you rst put on the
Covered Call.

How do you do that?

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I’ve also created a video speci cally on this :)

In this video below, I share with you exactly when to sell a Covered
Call, and how to select the best strike that will reduce the chances of
getting assigned.

After watching all these videos, you should be more than equipped to
sell Covered Calls.

Alright, that’s it for Option Income Strategy #1. Now, what if you want
to collect even more premium and generate more income?

Then it’s time to reveal Option Income Strategy #2, and that is none
other than the…

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2
1 STRATEGY #2: WHEEL STRATEGY

The Wheel Strategy is a pretty popular Option trading strategy. And

for good reason as well!

That’s because it’s pretty simple, straightforward, and some people

consider it a “No Loss” Strategy. However, I’d say that’s not exactly
true because if the stock goes to zero, no matter what strategy you
have on, you will still lose money.

But it’s the closest strategy to a “No Loss” Strategy for sure, IF you
choose the right stock for using this strategy.

So what exactly is the Wheel Strategy? It’s basically a combination of

two Options:
• Cash Secured Put (CSP)
• Covered Call (CC)

And the reason it’s called the Wheel Strategy is because of this
cycle:

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So how does it work? There are basically just 3 steps…

Step 1: You start off by selling a CSP. The idea here is to collect the
Premium and you wouldn’t mind getting assigned (and getting a Long
stock position) because you already have the cash to buy 100 shares
of the stock.

Step 2: If you get assigned on your CSP, sell a CC. If the CSP expire
worthless, then you go back to Step 1 and sell another CSP.

Step 3: If your CC gets assigned, then you start the whole cycle all
over again and go back to step 1 and sell another CSP. But if your
CC expired worthless, then simply sell another CC.

Essentially, you will be doing these three steps over and over again.
Here’s a more detailed explanation of the Wheel Strategy:

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But there’s also a variation of the Wheel Strategy and I call it the
Enhanced Wheel Strategy.

This is where you use Ratio Spreads instead of the traditional CSP
and CC. This can generate more pro ts if you do get assigned each
step of the way.

I explain it in detail in this video:

Now, I know what you might be thinking…

The Wheel Strategy sounds just too good to be true. Is there any risk
to the Wheel Strategy?

And the answer is yes.

The risk lies AFTER you get assigned on your CSP.

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For example, let’s say you sold a CSP on XYZ stock at the strike
price of $20 and you get assigned. That means you would now be
Long 100 shares at $20.

But what if the stock then crashes to $10?

At this point, you most likely wouldn’t be able to sell a CC because

your entry price is too far away for the CC to get any decent
Premium.

And you don’t want to risk selling a CC below your entry price
because if the stock were to suddenly rally past your CC and you
aren’t able to roll your CC anymore, then you would have just locked
yourself in a loss. De nitely not a situation you want to be in.

So what’s the solution? It’s called the Income Grid Wheel Strategy…

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I’ve also taken the liberty to create two further videos to show you
exactly how I implement the Income Grid Wheel Strategy and show
you my actual trades:

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So I hope after watching these videos, you now are able to have a
better idea of how to implement the Wheel Strategy in your own
trading. Now, one thing you might have realised is how capital
intensive trading the Wheel Strategy can be.

That’s because the way I trade the Wheel Strategy is to choose

fundamentally good stocks. This ensures that I will always have a
very good chance of making money trading the Wheel Strategy.

The issue is that most fundamentally good stocks are expensive! And
the reason they are expensive is because they have survived
crashes and emerged with a higher price years after.

Now, if you have a trading account size that is at least $50,000 -

$100,000, then you’d have no problem trading the Wheel Strategy on
these fundamentally good stocks.

But what if your account size is less than $50,000? Then the
compromise would be to nd stocks that are lower priced (less than
$50). However, nding strong fundamentally good stocks under $50
can be challenging.

And I’d caution against trading the Wheel Strategy on low-priced

stocks that have weak fundamentals and very high implied volatility
(that gives you juicy Premiums).

A better alternative would be to use Options Income Strategy #3, and

that is…

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STRATEGY #3: EXPECTED MOVE

3
1
OPTION STRATEGIES

Now, if you’re somewhat new to Options trading, then you might be

wondering what on earth is “Expected Move”!

Good question.

I explain it all in this video…

So why trade Expected Move Option strategies?

That’s because these are high-probability strategies where the win

rate can be anywhere from 70% - 90%.

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And when you want to generate a consistent income each month, it’s
important to trade these high-probability strategies so that you keep
seeing the income come in.

If you were to suffer losses after losses, while it can be overall a

pro table trading strategy, you can start losing con dence along the
way and avoid putting on trades when you should.

The best part about Expected Move strategies are that they are
market-neutral.

That means you do not have to pick a direction!

One of the toughest thing to do when trading the markets is picking a

direction. Many people often have analysis paralysis when doing so!

You see, in the short-term, the market pretty much has a 50/50
chance of either going up or down.

No one can truly predict if the market will go up or down in the next
30 days, 60 days, or even a year from now. And if anyone says they
can, be very wary!

So choosing a strategy that is based off choosing a direction in the

short-term usually have a low win-rate.

But with a market-neutral strategy, it takes the pressure off you

having to pick a direction.

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So instead of having to come up with an opinion that the market is

going to go up or down, you can simply have an opinion that is, “I
don’t know where the market is headed and I don’t really care. But I
do know that there is a high-probability of the market staying in a
given range that is backed by mathematical probabilities, and if it
does, I will be pro table”.

This certainly beats having to pick a direction and only have at best a
50/50 chance of pro t!

So what kind of market-neutral strategies can you trade that utilizes

the Expected Move?

I’ve created a video where I share three of the most pro table
market-neutral strategies that you can get started with:

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4
1 CONCLUSION

Congrats on getting all the way end to this Blueprint!

I hope you’ve found a lot of value in this Blueprint that I’ve put
together for you, and more importantly, learned how powerful Options
can be to create a consistent income for you.

Now, this isn’t the end, but rather just the beginning of your journey.

There’s so much more to Options trading than what I’ve shared in

this Blueprint.

I strongly suggest to check out all my videos on my YouTube channel

(https://www.youtube.com/@OptionswithDavis) as I regularly upload
videos there, and I know it will greatly help you in your journey to
trade Options.

Last but not least…

May the Options favor you! :)

Best Regards,
Davis

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