\n\n \n\n \nIncome vs Wealth Building
\nThe Consistent Options Income trade that was published in 2008 was all about trying to create a high probability strategy that could turn accumulated wealth into a regular monthly income. However, I have had many inquiries over the years about how one could accumulate the wealth to begin with. The Guns & Butter trade is my answer to that question. It is how I attempt to accumulate and grow wealth. The perspective is longer term and the trading approach can put a lot more money to work. If you are looking to compliment your income trading approach or just want to put some money to work, this is a great strategy that should outperform the indexes over time. It is also very easy to manage monitoring as little as once per trading day.
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Consistent Options Income Strategy
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Objective: Income\n
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Highest Probability
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Monthly Perspective
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Guns & Butter Trade
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Objective: Wealth Building\n
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High Probability
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Longer Term Perspective
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Put More Capital to Work
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Low Maintenance
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Easy to Trade and Manage
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Guns & Butter?
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In the world of Economists, the Guns & Butter Model attempts to describe the relationship between a nation’s spending on the military and it’s spending on civilian goods.
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A nation’s objective is to strike a balance that provides for a prosperous yet secure economy.
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In a Trader’s Economy, we want to strike a balance between holding financial assets (Guns) and selling premium (Butter) so as to provide a prosperous yet secure portfolio.
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Lock & Load…
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Wax On, Wax Off
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We Need to Change the Way We Think About Our Position
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Unburden Ourselves From the Myths of Conventional Wisdom
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Control What We Can Control
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Accept the Real Risk at Trade Initiation
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The Market Rewards Risk Takers
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Manage the Short Options Around Our Assets in a More Efficient Manor
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There is a Better Way
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What is the Guns & Butter Trade?
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Long and/or Short Stock Positions
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Options to Enhance Returns
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Sell Calls to Lower Cost of Long Stock Positions
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Sell Puts to Increase Selling Price of Short Stock Positions
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But How Do We Manage It More Efficiently?
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An Intelligent Options Adjustment Approach to Improve Returns
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Improved Performance Compared to Conventional Covered Strategies
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Avoid the Traps Set by the Covered Call Myths
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