In the realm of investing, mastering the art of trading in manipulated markets can be a lucrative endeavor. The allure of compounding interest and strategic options trading presents an attractive opportunity to seasoned investors and novices alike. Today, we delve into a potent strategy that offers a 73% chance of success while focusing on generating additional income.

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Jargons Explained:

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Before we continue, let’s me explain some of the terms we’ll use throughout this blog.

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- ETN: Exchange-Traded Note - Represents an unsecured debt security issued by financial entities.

- Bear Call Spread: A strategy involving the selling of a call option and simultaneously purchasing a further out-of-the-money call option, aiming for income generation.

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If you want to skip ahead, click here to watch the short video explanation of how you can maximize your profits with Bear Call Spread: https://youtu.be/Rj0o0zxcH_g 

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Leveraging a Bear Call Spread with VXX

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VXX is currently in a downtrend due to declining short-term futures on the VI index. Instead of shorting the ETN, we recommend using a bear call spread to generate monthly income. Sell a 12.5 call and buy a 13 call to potentially earn a credit of $4.5 per contract. By deploying multiple contracts, you can increase your potential income.

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This strategy caps your maximum risk at $45.50, offering a favorable risk-reward ratio. While VXX might rise, you can protect against significant losses by buying a 13 call and setting stop-loss orders. Our analysis shows only a 28% chance of VXX exceeding $12.5, making this trade relatively secure.

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Implementing Strategic Options Trading

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You can handle options trading in volatile markets more prudently by following this approach. The steps we outline here pave the way for a cautious yet profitable venture into VXX trading. Mastering options strategies is key to maximizing income and staying competitive in the trading arena.

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Options trading offers strategic manipulation and income potential. By mastering the nuances of trading, you can unlock new opportunities for financial growth. This strategy serves as your starting point for exploring options trading and crafting strategies tailored to your risk tolerance and financial goals.

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Join Our Community

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If you want to learn more about options trading and strategic investments, join our free Next Level Options Masterclass. Enhance your trading skills, discover lucrative opportunities, and embark on a journey to financial empowerment.

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Alternatively, if you want to gain access to exclusive expert insights and like minded community, join our telegram group! Informed decisions and calculated risks are essential for sustainable financial growth. 

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