JOIN MY $30K TRADING CHALLENGE!! HOW I USE THE BUY/WRITE STRATEGY TO MAXIMIZE PORTFOLIO GROWTH!

Summary

In this video, Ashley shares insights into her Buy Write strategy, a trading method that combines buying stocks and selling calls to generate premium and capital gains. She highlights the importance of using technical indicators like the RSI and Bollinger Bands to identify strong trade setups and explains her approach of waiting for a stock to gain momentum before selling calls for maximum profit. With real-life examples, Ashley demonstrates how this strategy led to impressive returns of up to 522% annually, emphasizing the benefits of aggressive call selling and fast trade cycles. Join her community for expert guidance and access to exclusive trade setups.

Takeaways

• 😀 Community-driven trading: Ashley emphasizes the importance of the community, where members actively contribute to trade setups for mutual success.
• 😀 The Buy-Write Strategy: This involves buying 100 shares of a stock and selling a call to earn premium, aiming for a quick return in 3-5 days.
• 😀 $30,000 Challenge: Ashley is starting a challenge to grow a $30,000 account over 6 weeks, utilizing the Buy-Write strategy and community trade setups.
• 😀 Previous Challenge Success: The $25,000 challenge resulted in a 20% return in 7 weeks, showing the effectiveness of this trading strategy.
• 😀 Annualized Returns: If repeated consistently, a 3.75% return in one week could lead to a 195% annualized return, significantly outperforming traditional investments.
• 😀 Risk Awareness: While the strategy offers high returns, there are risks involved, particularly if a stock drops unexpectedly after purchasing.
• 😀 RSI Indicator: Ashley uses the Relative Strength Index (RSI) to identify stocks in a bullish mode, preferring RSI values over 50 for trade setups.
• 😀 Bollinger Bands: Ideal stocks for Buy-Write should be in the middle to upper portion of their Bollinger Bands to ensure some upside potential before the call away.
• 😀 Aggressive Delta Strategy: For better premium returns, Ashley favors more aggressive deltas (0.4 or 0.5) when selling calls, as opposed to the more conservative 0.2 used in other strategies.
• 😀 Stock Appreciation & Call Away: The goal is to sell the call, let the stock rise, and then have the shares called away, unlocking capital for new trades.
• 😀 Celebrating Success: The community has seen success stories, with several traders becoming millionaires in under a year, showcasing the potential of following a well-defined strategy.

Q & A

What is the Buy Right strategy in options trading?

The Buy Right strategy involves buying 100 shares of a stock and then selling a call option on those shares to generate premium. The aim is to have the stock called away, meaning the stock is sold at the strike price of the call option, providing both premium income and stock appreciation.

What was the focus of Ashley's recent Buy Right webinar?

The webinar focused on explaining the Buy Right strategy in detail, using analogies to make it easier to understand. Ashley aimed to equip attendees with the knowledge to apply this strategy to their own trading, emphasizing that it's a valuable tool in options trading.

How did the $25,000 challenge perform in Ashley's community?

The $25,000 challenge was a success, achieving over a 20% return in 7 weeks, surpassing the initial 6-week timeframe due to additional opportunities. The goal was to grow the account by trading options, and the challenge added $5,400 to the account.

What is the purpose of the new $30,000 challenge?

The $30,000 challenge is about testing the effectiveness of the Buy Right strategy within the community over 6 weeks. Participants, including Ashley, will share trade setups and contribute to the challenge, with the potential to scale into larger accounts if needed.

What are the benefits of the Buy Right strategy?

The Buy Right strategy offers a quick return, usually within 3 to 5 days, by selling calls on stocks that are expected to appreciate. The benefit lies in generating premium income and stock appreciation, while also having the potential for significant returns when the strategy is executed correctly.

What does Ashley mean by the 'delayed Buy Right' strategy?

The delayed Buy Right strategy involves buying the 100 shares of stock but waiting to sell the call option until the stock shows signs of upward momentum. This approach helps maximize the premium received from selling the call and allows for greater stock appreciation before the stock is called away.

What technical indicators does Ashley use to select stocks for the Buy Right strategy?

Ashley uses the Relative Strength Index (RSI) and Bollinger Bands to identify suitable stocks for the Buy Right strategy. A stock with an RSI over 50 indicates bullish momentum, and the stock's position within its Bollinger Band helps ensure there is potential for further upward movement before the call is exercised.

How does Ashley manage risk in the Buy Right strategy?

Ashley acknowledges that there is always risk in trading, particularly if the stock unexpectedly drops after purchase. To minimize risk, Ashley focuses on buying stocks with favorable technical indicators and aims for quick trades where stocks can be called away in a short period, reducing the chance of holding onto losing positions for long.

What are the potential risks associated with the Buy Right strategy?

The main risk of the Buy Right strategy is if the stock's price drops significantly after purchasing the shares, potentially leaving the trader with a loss until the stock recovers. Timing is crucial, and if a stock's price declines before the call is sold, the trader may have to wait for recovery to profit from the strategy.

What was the annualized return for the VRT trade example Ashley shared?

For the VRT trade, Ashley bought 100 shares at $122.87 and sold a 125 call, generating a 3.75% return in just one week. When annualized, this equates to a 195% return, illustrating the potential for significant gains when the Buy Right strategy is executed successfully.