{"id":41076,"date":"2015-06-01T08:30:37","date_gmt":"2015-06-01T12:30:37","guid":{"rendered":"http:\/\/www.smbtraining.com\/blog\/?p=41076"},"modified":"2023-06-13T09:42:06","modified_gmt":"2023-06-13T13:42:06","slug":"the-long-term-key-to-succeeding-as-an-options-income-trader","status":"publish","type":"post","link":"https:\/\/www.smbtraining.com\/blog\/the-long-term-key-to-succeeding-as-an-options-income-trader","title":{"rendered":"Unleashing the Long-Term Key to Thriving as an Options Income Trader"},"content":{"rendered":"

Having run our options trading desk at SMB for over two years now and having traded options income strategies as a retail options trader for close to ten years I can tell you this…<\/p>\n

The data is in and the record is clear: Income traders who \u00a0control the size of their losing trades are the long term winners.<\/span> \u00a0<\/strong><\/p>\n

That\u2019s because options income trades usually have very high win rates\u2014often 60 to 80% of the time\u2014but relatively lower levels of profit per trade than other forms of trading\u2014such as day trading or swing trading equities.<\/p>\n

So with such high win rates, yet such modest profits per trade, it stands to reason that controlling the size of losses in those minority of cases where these trades lose is critical to success over the long haul.<\/p>\n

That\u2019s why the broken wing butterfly is such a popular trade among market makers and options trading professionals in general.<\/p>\n

The broken wing butterfly is very frequently positioned as a directional trade, with a very modest loss if the directional prediction is wrong and an excellent reward if the direction selected turns out to be correct.<\/p>\n

Personally, I like to have a high probability to win in both directions\u2014whether I am right, or I am wrong about direction.<\/p>\n

The broken wing butterfly\u2014traded at a credit\u2014allows you to do just that\u2014a modest, but ironically guaranteed, \u00a0gain if you are wrong about direction. And a lottery ticket like gain if you are right about direction, in many cases.<\/p>\n

Many of the traders in our SMB Options Tribe trading contest regularly place broken wing butterflies as a staple part of their monthly trading regimen. That is no surprise given the flexibility and unique nature of broken wing butterflies.<\/p>\n

 <\/p>\n

-Seth Freudberg
\nDirector of Options Trading<\/p>\n

Options risk disclosure.<\/a><\/span> No relevant positions.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Having run our options trading desk at SMB for over two years now and having traded options income strategies as a retail options trader for close to ten years I can tell you this… The data is in and the record is clear: Income traders who \u00a0control the size of their losing trades are the long term winners. \u00a0 That\u2019s … Read More<\/a><\/p>\n","protected":false},"author":741,"featured_media":36025,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2063],"tags":[4467,4469,1259,4468,1965,1801],"class_list":["post-41076","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-smb-options-2","tag-butterfly-options","tag-how-we-trade-options","tag-options-trading","tag-options-trading-for-income","tag-options-trading-strategies","tag-options-tribe"],"yoast_head":"\nSucceed as an Options Income Trader | SMB Training<\/title>\n<meta name=\"description\" content=\"Learn the long-term key to succeeding as an options income trader with us. 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