Course Description
Most retail traders fail because they pick up pennies in front of a steamroller. This course teaches you how to see the steamroller coming. By combining a 7% Out-of-the-Money (OTM) buffer with an institutional Rollout Protocol, you will learn to manufacture consistent income. We back this "Engine" with a Triple-Lock safety system that would have successfully navigated the Dot-com crash, the 2008 Financial Crisis, and the 2020 Pandemic.
📚 Module 1: The Strategy Engine
Goal: Understanding the core mechanics of the income generation.
The 7% OTM Strategy
The Entry: Every 28 days, sell an S&P 500 put option with a strike price exactly 7% below the current market price.
The Philosophy: Since 2000, the S&P 500 has finished a month down more than 7% only 6.4% of the time. You are betting on the 93.6% probability that the market stays within its normal range.
The Rollout Protocol (The First Line of Defence)
If the market begins to drop, we do not wait to be hit. We use a proactive "Roll" to defer losses and lower our strike.
The Trigger: If the S&P 500 price drops to within 2% of your strike.
The Action: Close the current trade (Buy to Close) and simultaneously sell a new put (Sell to Open) 28 days further out and as far down as possible to achieve a "net breakeven" or a small credit.
The Benefit: This "kicks the can down the road," allowing time for the market to stabilize without realizing a loss.
📚 Module 2: The "Triple-Lock" Defensive System
Goal: Establishing the rules that protect your capital when the "Roll" isn't enough.
Rule 1: The Trend Filter (200-DMA)
The Rule: Only sell puts when the S&P 500 is trading ABOVE its 200-Day Moving Average.
The Stat: Since 2000, 85% of the S&P 500's worst months occurred while the index was below its 200-DMA.
Rule 2: The VIX 35 Emergency Lever
The Rule: Close all positions if the VIX closes above 35 for two consecutive days.
The Benefit: This is your "Panic Button." When the VIX hits 35, the market is no longer orderly, and "Rolling" becomes mathematically dangerous due to exploding option prices.
Rule 3: The 75% Harvest Rule
The Rule: Close the trade once you have captured 75% of the maximum profit.
The Benefit: This gets you out of the market sooner, reducing your "Time at Risk."
📚 Module 3: High-Octane vs. Sleep-at-Night
Goal: Choosing your vehicle (Leveraged XSP/Spread Betting vs. Cash-Secured SPY).
The Leveraged Approach (XSP IBKR / US 500 IG Index)
Margin Usage: Keep required margin at 30% of your £/$/€10,000 account - circa 12 per point on IG Index. On IBKR using XSP the system will tell you how much margin is being used.
Risk: High. Requires strict adherence to the VIX 35 Lever to avoid a margin call.
Potential: High compounding through leverage.
The Cash-Secured Approach (SPY IBKR)
The Buffer: You hold 100% cash to back the trade.
Risk: Extremely Low. No liquidation risk.
The Outcome: If the market crashes, you simply own the S&P 500 at a 7% discount. This is the foundation of "The Wheel" strategy.
📚 Module 4: Statistical Stress Test (2000–2026)
Goal: Proof of concept through the lens of history.
Era | S&P 500 Result | Strategy Outcome (with Triple-Lock) |
Dot-com (2000-02) | -49% Decline | Safe: Stayed in cash due to 200-DMA filter. |
Financial Crisis (2008) | -56% Decline | Safe: VIX 35 Lever triggered in Sept '08, avoiding the -16% Oct crash. |
COVID Crash (2020) | -34% Decline | Safe: 200-DMA broke early; VIX Lever triggered at the start of the panic. |
Slow Bleed (2022) | -19% Decline | Safe: Stayed in cash for most of the year due to 200-DMA filter. |
📚 Module 5: Your Daily Checklist
Check 1: Is S&P 500 > 200-DMA?
Check 2: Is VIX < 35?
Check 3: Is my current profit < 75%?
Check 4: Is the S&P 500 price > 2% away from my strike?
If the answer to any of these is "NO," you either close the trade, roll the trade, or stay in cash.
Final Course Summary
You are no longer "gambling" on market direction. You are an insurance provider. You sell protection when the trend is up (200-DMA) and the environment is calm (VIX < 35). When the environment turns hostile, you pull your "Levers" and wait for the sun to come out again.
🚀 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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