Course Introduction
The Income Engine & The Safety Switch
Welcome to the world of short puts. You are about to learn one of the most consistent ways to generate monthly income in the stock market. We are going to focus on a powerful Out-of-the-Money (OTM) strategy—a method designed to put the odds of success overwhelmingly in your favour.
However, there is a catch.
In options trading, the 'how-to' is only half the battle. You can pick the perfect strike and the perfect timeframe, but if you don't know exactly how to handle a market crash, one 'Black Swan' event can erase a year's worth of progress in a single afternoon.
Because I am committed to your long-term survival, this course is designed as a two-part experience:
The Engine: In this course, you’ll learn the core strategy: selling OTM puts on the S&P 500 and using our signature Rollout Protocol to stay ahead of market dips.
The Safety Switch: Immediately following this, you must complete 'The Defensive Put-Seller’s Playbook.' While this course gives you the tools to make money, the Playbook gives you the 'Triple-Lock' defense—including the 200-Day Trend Filter and the VIX 35 Emergency Lever—to ensure you actually keep it.
You wouldn't jump out of a plane with just a manual on 'how to fall'; you need to know how to pull the parachute. Consider this course your flight manual, and the Playbook your parachute.
Let's start building your income engine.
Step by Step guide to placing a short put trade on IG Index
Phase 1: Finding the Market
Open the Options Menu: From the left-hand sidebar of your IG dashboard, click on Options.
Filter by Asset Class: Ensure the Indices button is selected at the top of the main window.
Locate US 500: Scroll down the list of markets to find US 500. Click the small arrow to the right of the name to expand the available expiries.
Phase 2: Selecting the Expiry & Strike
Choose Your Date: From the dropdown list, select the specific expiry for the trade (e.g., 30 Jan 26). This will open the Option Chain.
Identify the Puts Side: The screen is split into Calls (left) and Puts (right). Look only at the Puts side for this strategy.
Find the Strike Price: Scroll down the center column until you find your target strike (e.g., 6500).
Phase 3: Configuring the Deal
Open the Ticket: Click the Sell button (highlighted in red) next to your chosen strike. This opens the Deal Ticket on the right side of your screen.
Verify "Sell" Direction: Double-check that the Sell tab is active (red). Selling a Put is how we collect the premium income.
Set Your Size: Enter the amount you wish to trade in the Size box (e.g., 20 per point).
Phase 4: Execution & Monitoring
Check Margin: Review the Margin requirement at the bottom of the ticket to ensure your account has sufficient funds to cover the trade.
Place the Deal: Click the green Place deal button to send your order to the market.
Monitor Live: Once filled, your trade will appear in the Positions tab at the bottom of the platform. You can track your Opening price, Latest price, and live Profit/Loss from here.
⚠️ Key Reminders
Check the Label, Expiry, Strike: Always ensure the ticket says US 500 PUT before clicking buy or sell.
Safety: We specifically choose strikes that sit below the current market price to provide a "buffer" for the trade.
Margin: Pick your position size to the margin level that you are comfortable with (everyone is different). We suggest that you never let margin get over 60% of account value.
Video ( 8 minutes long)
🧪 Practice Before You Trade (Risk-Free)
We strongly recommend that all our students start by practicing these strategies in a simulated environment. This allows you to master the IG deal ticket, understand price fluctuations, and test your "Option Income Engine" without risking a single penny.
'Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 68% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.'
Switch to a live account only once you are comfortable with the platform and your strategy execution.
🚀 Free Strategy Call
Trading theory is only 10% of the journey. The remaining 90% is mastering strategy application, market psychology, and capital preservation under live conditions.
Don't risk your capital making avoidable beginner mistakes. Leverage the experience of a dedicated trading mentor.
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