The "Green Light, Red Light" Options Strategy for Beginners
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Want to make consistent income trading options without staring at charts all day? In this beginner-friendly episode, I share a simple, rule-based system that tells you exactly when to trade—and when NOT to trade.
Here's what you'll learn:
✅ The VIX Rule: How to use the VIX (fear gauge) to know when options premiums are worth selling
✅ Red Light Rule: If VIX is below 20, don't trade much (premiums are too small)
✅ Green Light Rule: If VIX is above 20, increase your size (premiums are juicy)
✅ The 1 DTE Strategy: How to sell options that expire in 1 day to capture maximum profit
✅ The 50% Profit Rule: When to close your trade early and lock in gains (this is key!)
✅ Risk Management: Never use more than 10% of your account on daily trades
I also explain why SPX and XSP are better than SPY for this strategy (hint: better tax treatment in the U.S.).
This is NOT day trading. This is a stress-free, repeatable system that works when the VIX tells you the conditions are right. No guesswork. No six monitors. Just simple rules.
Real Example: In March 2026, when VIX spiked over 30, I sold SPX puts 20% out of the money and collected $4,500 in premium. The next day, the market rallied and I locked in a 50% profit in less than 24 hours.
Visit https://beststockstrategy.com to get over $400 of free beginner training.
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