Conventional Covered Call Strategies Don't Work
You’ve never seen these kind of covered calls:
- 473% Annualized Return on Risk
- 685% Annualized Return on Risk
- 1,089% Annualized Return on Risk
- And a Whopping 2,316% Annualized Return on Risk
Conventional covered call strategies have ridiculous risks associated with them, and are incredibly inefficient.
This is why most experienced traders abandon the strategy altogether.
And I don’t blame them. You wouldn’t catch me dead trading a conventional covered call strategy.
Ever.
Which is why you need to watch this video on my very unique, very efficient CashFlow Covered Call strategy.
- Risks are reduced by 90%+
- Annualized Returns Increase by as Much as 10x
- Super Easy to Implement
- Requires Very Little Capital
- And so much more.
Click Here to Watch This Video Now
All Traders Lose...
I often hear from traders about what they want in trading.
Essentially it goes something like this…”I just want a low risk strategy that consistently makes money”.
Oh, is that all?
Truth is, there are a lot of low risk strategies that consistently make money…but the problem is that many traders actually mean “no risk” and the term “consistently” means always without interruption.
Let me be clear, there is always risk and there is always a chance that a consistent strategy does not perform.
In 2001, I had an S&P system that turned a 15,000 account into 107,345 in 65 days.
The huge increase was due to money management being applied.
However, from April until the end of the year, that strategy was breakeven…
And from April to June, it went into a 10,000 drawdown based on a single contract (I was trading the big S&P, not the E-mini).
So what happened with the strategy?
Volatility in certain markets created an environment that was not favorable for this strategy.
The trades in those markets offset the winning trades in the markets that were not experiencing higher volatility.
What happened with the S&P strategy?
Well, if you look at a 2001 chart, the market was trending during the first 2-months I was trading the strategy in this account.
Then from April through September, the S&P was trading in about 100 point range…and then of course, we know what happened in September and things just got crazy.
Here is the truth about trading.
No strategy works the same in the markets all the time.
To think otherwise is simply not logical.
It is important to understand that traders need to prepare to suffer through long periods of time when strategies are not performing.
All traders go through periods where they lose money…the best, smartest, most talented, most experienced traders in the world cannot make money consistently without going through some sort of drawdown.
Sometimes those drawdowns linger (and they should as long as the market conditions that produced the drawdown also continue).
This is also why I have consistently pushed traders to focus on proper money management strategies.
These strategies can turn a small account into a large account in a very short period of time…but you have to be trading during that window of opportunity.
Most traders do not properly prepare themselves to trade through a drawdown 75% of the time to reach that window where the Fixed Ratio Money Management strategy can maximize a winning streak.
If you go through a period where you lose money, that doesn’t mean you are stupid.
All traders do it.
You have to realistically prepare yourself and focus on the money management strategy instead of always being right.
You aren’t going to always be right anymore than you are going to hit a hole in one off every tee box.
BUT THERE IS MORE…
Money Management is THE most important difference between a successful trader and an unsuccessful trader.
However, I am competitive.
I don’t like accepting that I have to take that draw down hit 75% of the time.
So here’s where the game changer came into play.
Now there are daily expirations.
It is these short time periods between expirations that creates the almost unbelievable “warped time decay”.
And if you aren’t taking advantage of them, you are missing out on one of the most untapped profit producing machines known to man.
Just a few short years ago, what my unique approach can do was not even available.
That’s because the only way to trade option spreads was based on monthly expirations.
This is where my CashFlow Approach was born.
I have created an entire library of short courses teaching strategies that follow the “low-risk, high-probability” standard that work in different types of markets.
Because of this, I put myself in the best possible position to avoid drawdowns and apply compounding to my account.
And if the market moves against me, I am prepared because I have applied proper money management.
This is what I have hounded and hounded traders to understand.
I get it. Money Management is boring.
It’s not “sexy”.
But we are playing the long game here.
Where do you want to be in 2 years?
5 years?
20 years?
The market is unpredictable..
It’s time to put in the boring work and watch your potential grow.
And that is the Truth About Trading.
Trade Smart, Retire Wealthy.
Ryan Jones
SmartTrading Founder-
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