A Perfect Put Selling Winning Streak

Bryan and I often receive questions about our track record in The War Room. And we’re happy to share it with our members.

We’re damn proud of it.

Since The War Room’s inception in May of 2019, we have had an 80% win-loss rate, including the crash in March of this year. In fact, during the crash, our win-loss record was even better as Bryan went on a put buying tear.

Buried within our track record is an even better 100% winning streak, our put selling track record. So far, we have not been put even once, despite all the ups and downs.

The closest we got was with Wells Fargo, which we rolled forward – there’s still a chance we will get put that one, which would be fine with me!

Why is our put selling strategy so effective?

Before I get into that, let’s quickly go over what put selling is…

Put selling is when you sell a put option. When you place the trade, you receive the premium from selling the put. That’s yours to keep no matter what.

In return, you’re saying that you know you can be obligated to buy the underlying shares at the strike price of the put, if the shares close at or below that level at any time and especially at expiration.

So, for example, we recently closed out a 35% winner on Inseego (Nasdaq: INSG). When War Room members entered the trade, the shares were at $11. I wanted the shares for less than that price – $5 to be exact.

So members sold the $5 puts that obligated them to buy the shares at $5 in or by January if the shares closed at or below $5. For our efforts to try to buy the shares at a 60% discount to the market price at the time, members got paid cash. They closed out the trade early and booked a nice gain!

But all the while, members entered into a contract to buy the shares if they closed at or lower than $5. I like those odds. And it is trades like this that allow for the perfect record to date.

Here’s why…

  1. We choose only quality companies that we want members to own, but at our price.
  2. We sell puts only on companies that offer members a chance to buy at a discount of 20% to 50% below the market price. If they are put, we are happy.
  3. We recommend selling puts only on companies where the probability of being put is less than 25%, preferably less than 20%. This allows members to trade the puts since the discount is so high and the probability is so low.
  4. We always recommend position sizing. Perhaps the most important aspect of put selling is to position size because you never know when you will be put the shares.

Action Plan: We don’t chase premiums willy-nilly. We recommend selling puts only on companies we want to own and at the price we want to own them at.

That keeps us in check and in the money! Join me in The War Room to be part of this “perfect” win streak!

P.S. Want to know what trades Bryan and I believe to be the absolute best? Sit back, relax and watch an engaging video once a week that will give you our top trading pick! We’ll tell you everything you need to know, including when to sell! Stay tuned for the release of our brand-new Trade of the Day Plus service coming this September!