Dan Sheridan – Short Strangles for Monthly Income

Mastering the Short Strangle Strategy for Monthly Income

In this course, Dan teaches you how to effectively trade Short Strangles for consistent monthly income. Special guest Karen Bruton joins in the final class, sharing additional insights.

This three-week live course includes over 7 hours of archived recordings for your review, along with PDF resources.

Watch the Course Overview

Key Learning Outcomes

• Master the Short Strangle Strategy
  Learn how to execute the short strangle strategy successfully to profit from market stagnation or limited price movements.

• Risk Management Techniques
  Understand how to limit downside risk and protect profits while trading short strangles.

• Maximizing Monthly Income
  Focus on generating reliable monthly returns through conservative option selling strategies.

• Managing Low Volatility Markets
  Adapt the short strangle approach to various market conditions, especially low volatility periods.

• Practical Trade Adjustments
  Learn how to adjust positions in response to market changes to protect capital and optimize profits.

Course Structure

1. Introduction to Short Strangles

   • Overview of options basics: calls and puts.

   • Defining short strangles and their risk/reward profile.

   • When to use short strangles for income generation.

   • Key characteristics of markets suitable for short strangles.

2. Executing the Strategy

   • Step-by-step process for setting up short strangles.

   • Understanding the role of implied volatility (IV) in short strangles.

   • Selecting the right strike prices and expiration dates.

   • Choosing underlying assets with minimal price movement.

3. Managing Risk and Adjusting Positions

   • Setting and managing stop-loss levels.

   • Managing positions when the market moves against you.

   • Adjustment techniques to minimize losses, including rolling positions and converting trades.

   • Diversifying short strangles across multiple assets to reduce risk.

4. Generating Consistent Monthly Income

   • Leveraging theta decay for predictable returns.

   • Timing short strangles for optimal income generation.

   • Managing premium collection to build steady monthly income.

   • Understanding the role of time decay and volatility in generating profits.

5. Real-World Application and Examples

   • Case studies of short strangles in live market scenarios.

   • Practical examples of trade setup and management.

   • Live trading sessions with Dan Sheridan to see strategy execution in real time.

6. Risk Management and Capital Preservation

   • Maintaining a strong risk-to-reward ratio.

   • Position sizing and capital allocation for short strangles.

   • Monitoring market conditions to adapt your approach as necessary.

   • Implementing defensive strategies when market conditions change.