Weekly Income Alert – October 24, 2025

Good morning, everyone. We’ve got another week and another win.

We closed out a bit early, as you probably saw the alert that went out yesterday from Marc.

Basically, we wanted to make sure, Marc wanted to make sure that we got out of the position before today because we have economic data being released. And you never know how the market could react. So it’s better to be safe than sorry.

But, otherwise, we’ve got – what are we at? I think twenty for twenty one wins.

So I see someone said they did not get an alert.

Let me – and someone’s saying they can’t hear me.

Let’s make sure.

Hello? Hello?

Hello?

Okay.

Seems like okay. Most people can hear me.

If you can’t double check that the the video is not on mute on your end or even maybe the tab itself.

Otherwise, it seems like people can hear me fine.

Also, just a quick check, did did many of you get the alert yesterday or not?

Yes. Okay.

Okay. So I think for the most part, people did. You You know, if you didn’t, either double check to see maybe if you missed it or if you haven’t signed up for text alerts as well, you might want to go on the site and sign up for those just to have a double, you know, alert sent to you, email and text.

But basically, like I said, we got out of the position early, only by a day, just because we wanted to avoid any overreaction that could have happened in the market today.

So again, we got twenty for twenty one.

So another easy week for us.

And, you know, the winds have been so consistent that I’ve actually acquired a new art piece from my office.

This is a pretty not well known artist, up and coming.

One of their first pieces. I know them personally, so I had gotten this on a good deal.

It also helps that it’s my two year old daughter.

I think in time, it’ll appreciate.

So, you know, the money’s being invested elsewhere.

So this week, we’re gonna do things a little quicker, only because I think by now most of you have the cadence of how we do things. As always, I’m still going to answer questions that I see in the chat, but we’re gonna kinda go through things with a bit more quickness this morning.

So let me go ahead and get my account set up and we can walk through today’s trade.

But first let’s actually look at how the markets look. You know, normally we’ll look at these things before we get on the chat, but I actually like to just look at it with you guys.

So let me get some stuff going and then I’ll share my screen.

K. Let’s look at the Russell. Okay. Oh, I haven’t actually shared my screen yet. Okay.

Okay.

K. Hopefully, you can see That. Yeah.

So all in all, you know, There’s not much of a negative reaction or anything.

You know? We probably could have left the trade as is and had it closed out today, but it was just a precaution.

So overall, we’re still in that solid uptrend that we’ve been profiting on since we launched the service.

And as usual, we’re going to be looking at options that are three weeks out and you should know by now, our rule of thumb is to look at a strike price that is roughly well, in short, Bye.

On the short strike of the of the spread. That’s roughly three percent below the current price of the stock Or if we had looked at this early in the morning, maybe would have gone by the close of yesterday.

But, I actually had enough and put up an indicator that I have made. See if I can find it.

That actually helps with this. So basically, it it it kinda generates where those strike prices are going to be three weeks out.

I mean, I can always, of course, manually calculate it, but it’s just kind of a nice visual for me to to look at along with the with the stock chart.

So let’s actually look at where these are at. We’ve got twenty five zero five and twenty five ninety five. So that would probably be based off the most recent price here.

Let’s actually double check that We got twenty five, twenty seven roughly.

So So let me do some quick math.

Twenty five twenty seven times point nine seven, twenty four fifty.

Yeah, this is actually a bit higher than that. So we’ll go with twenty four fifty, maybe pulling off of maybe the high. But twenty four fifty will be our short strike that we’ll look at in Schwab and twenty four forty.

Will be the long strike.

So let me go ahead and get Schwab set up.

And go to trades, Okay. The screen is shared.

So as usual, we’re gonna be going with the Russell, and it’s the dollar sign R U T. We’ll be choosing the weeklies after we’ve, selected the Russell.

And let me look at the calendar. One, two, three. We’re gonna be looking at the fourteenth. Let me just double check. Fourteenth.

Yes.

Oh. Oh.

Muscle.

Vertical puts.

K.

And then twenty four fifty, we said we were going with, and twenty four forty.

K. Let’s look at the k. We’ve got open interest volume.

Okay.

Let me just look a tad bit below just to see what the Liquidity.

Looks okay. Twenty four fifty looks better. Looks okay. Twenty four fifty looks better.

I see someone’s asking what date.

That’s the fourteenth, so it’s three weeks out.

Your screen is not showing complete.

Is there anyone that’s not seeing my screen?

Okay. Alright. I’m just making sure that I it’s it’s you can see it. Okay.

So Yeah. So three weeks out, that’ll be the fourteenth of November.

Okay?

And twenty four point five zero dollars will be the short put, and the twenty four point four zero dollars will be the full on put.

And right now, it looks like we’re between two twenty, two twenty five. I’m just gonna leave it at two twenty.

Yeah. Two twenty, twenty twenty five. We’ll leave it at two twenty.

Make sure it always says credit.

Every single week, see people asking about this.

Forget, you know, whether it says net limit, whatever.

The most important detail is that it says credit. If it says debit, you are paying for the trade.

If it’s credit, It’s, income that you’re getting from the trade, which is the whole premise of this strategy.

Okay?

So make sure it says credit And we’re going with, two twenty for now. It keeps going back and forth, so we’ll just leave it there.

And then you go to review order.

And then I’ll, go ahead and put this into Okay.

And then I’ll go ahead and put this into the alert.

And then we’ll have an official trade out.

Let’s go ahead with I’m typing the alert up right now for those wondering.

Two twenty.

X j so twenty four Okay, Submit. Okay.

Okay. The trade is now out.

Okay. Okay. Now I’m gonna look at some of your questions in the chart.

I mean, the chat. Excuse me.

Why don’t we move the long to money and let the short expire?

I’m not sure I understand that question.

When we’re doing the spreads, these are two options that are being traded simultaneously.

So Unless I’m misunderstanding your question, we wouldn’t sell or we wouldn’t close one side and not the other or open to close one side and not the other. If we’re gonna do anything, we would do it to the entire spread all at once.

You said move the long to Monday, which to me sounds as if you’re only referring to that one part of the trade.

So if you want, you can write in and clarify what the question was about.

But these spreads, we treat as one single trade, not as two independent options.

Why did you do twenty seven percent INT and not the normal thirty percent?

Not sure what that’s referring to either. I mean, far as choosing the strike prices, it’s typically three percent below where the index currently is. So twenty seven versus thirty percent.

I’m not sure if you were referring to something else or if you meant two point seven versus three percent, I’m not totally sure.

Twenty four thirty, twenty four twenty looks safer. In general, it’s going to be safer because you’re further away.

You’re further out of the money.

You’re just going to typically collect less income. In this case, I think the market is pretty, pretty, pretty positive in how it’s reacting.

So I’m not too worried about going further out of the money.

If the market was moving down significantly, we could have made things, wider. Instead of three percent, we could have gone five percent. Or we don’t even have to go five. We could do four.

But in general, we want to kind of just stick with the setup that we’ve had that’s been working for us so well. Also I wanna point out my camera setup probably looks strange because, the camera I have is normally up here, but my monitor that it’s attached to actually stopped working on me. So I’m looking down at my laptop. If if case, you’re noticing that I’m looking down a lot.

I’m reading the chat and the camera’s up here. And normally, would have it right underneath the camera so that it looks more engaging. But Yesterday, actually, my my main monitor, it started getting fuzzy on me. So it’s technically on, but it’s hard to actually see anything.

Anthony, can you please tell us the names of firms that will allow us to run vertical put spreads?

I assume you mean brokerage accounts.

Typically, we’re doing these trays in schwa.

A lot of other users use Fidelity.

I think some people use Trace Station, but for the most part, I think a lot of us are using either Schwab or Fidelity.

So if you already have an account with one of those two, that might be the easiest way to do it.

Other one is You know, if you do have a different brokerage account, you can always let us know in the chat and, you know, we can see if maybe they have the same setup.

They all have different levels for different kinds of options that you need approval for.

And they generally have slightly different tiers that they’ll use, but they ultimately mean the same thing.

So for example, one might say it’s a level two level of approval. Another one might say level three, but that depends on whether or not they have a level zero or they start at level one. So for the most part, it’s not too hard to get approval.

It’s just a matter of reaching out to your broker.

I don’t understand if you were saying to close manually the spread that expires today. Right.

So alert was sent out yesterday to do that, to to manually close out that trade, which means just like we sold the spread for income for credit to open the trade, you would be buying to close the spread to exit the trade.

He sent out instructions yesterday And if you did not, well, one, you should probably check your email just to make sure.

But if you did not get the email, we may need to actually, James has set up a link here for how you can get the text alerts, is also helpful if you look at the pin message in the chat.

But there were instructions sent out yesterday, so you could follow those instructions.

Would you recommend adding more when Russell goes down?

So if the Russell’s going down, it means it’s coming closer to our strike prices. Right? So If anything you You could consider buying more as it’s going up. But in general, we we’re not trying to do a lot of doubling down and and and dollar cost averaging into these trades. We’re we’re trying to just maintain the rhythm that we have been doing since we started That’s been working out.

Not If you Start doubling down into certain trades and then not doing it to other trades. The way that your returns might be weighted in the long term could affect your win rate or could affect your profitability in the sense that if you happen to double down into trades that Don’t work out, you know, are you going to be inclined to double down on it?

On the next trade, it does work out if you’ve, know, lost a lot of money. I mean, it’s kinda psychological, but you want to be kind of consistent in how you’re executing every trade.

If there was a a formulaic kind of systematic rule to when we decided to double down, that could be something that that’s interesting that maybe we could test out or back test.

But, you know, I think in general, we do want to just keep things according to the rules we’ve built and try not to change too much in how we execute these trades.

And someone said Robinhood has credit spreads too.

I don’t typically use I have used Robinhood for options trading. I have not used it for any complicate, you know, credit spreads and and things of that nature, I I tended to avoid Robinhood. But I guess now they’re at a point where for a lot of people that’s their main broker, so it makes sense.

Mine was never filled to close.

Are you referring to yesterday?

If so, try to answer in the chat.

What was the indicator you used? Yeah.

I it was a custom tactical indicator I actually created.

Clearly, I do need to tweak it a bit because it was giving me strike prices that were a bit higher than what we wanted to use today.

But the idea was that it would project three weeks out what strike prices or what range of prices we will be targeting.

I don’t know why it was so much higher than what we ended up going with today. So I’ll have to look at the coding for that. But I like to make these kind of visual indicators, these visual cues for me.

It kind of just helps, you know, just a quick glance at the chart. Actually looking back at it now, I’m realizing that the reason it actually was doing that was because I didn’t have the weekly chart on, which makes sense. We typically are looking at week to week how the Russell’s doing. So I had it on the daily. On the weekly chart, it actually is giving twenty four point five five and twenty four fifty, twenty four forty five. So that’s more in line with where we could have been trading at. So little things like that.

Are what affect these technical indicators. And I don’t necessarily rely on them, but they give me a good kind of visual cue of, you know, where we might be headed.

Actually, I’ll go back real quick to show the weekly chart, actually gives a cleaner view of how this is supposed to look for us. So as you can see, I mean, following this logic, and this again, this is about So here, instead of the three percent rule, which we use as a rule of thumb, this is actually generating the the actual standard deviation over the past year or, fifty two weeks.

So even though it’s not precisely three percent, This is the logic that we use for the actual back test.

And I said over time, it tends to average three percent. So that’s why that’s our rule of thumb.

But But this indicator is a bit more precise.

And so you can see, I mean, following this we’ve basically been able to very easily clear and keep out of hitting these strike prices for the most part.

You know, here you can see we kind of came close and that was earlier this month, but even then, we didn’t actually get put on those.

Yeah, I mean, this this is just a helpful visual for me, but it’s not it’s not something that Marc isn’t necessarily looking at or anything we’re relying on.

It’s just a a nice visual cue.

What debit price did you close out the twenty four?

That’s a good question, and I actually should confirm with Marc, he’s out today. You know, he he makes these trades in his actual account, so I would like to see his actual exit price, but I can confirm when he’s available again or he can discuss it on the next chat.

But, you know, this is the first time maybe we may have done it once before, but, generally, we don’t. As I almost said, he reported seventy cents.

Generally, we we just let them expire.

You know, we’re we’re not trying to close them out early.

Marc just wanted to be safe.

But in general, that’s not what we’re aiming to do.

So for the most part, you know, if if if, you know, Marc sends out alert, he says, let’s close it out.

And it’s a day before expiration.

Obviously, you know, it’s it will be safer to just do so. But if in this case, you if you missed the alert and you woke up this morning and the market seems fine.

I mean, you could still just let it expire.

It’s it’s not is not something you’ve missed out on clearly given the the way the market’s moving this morning.

But what if the opposite happened?

You know, what if it was down big on really bad CPI numbers or something.

It’s just a lot easier to say, you know what? We’re out of the trade, and we don’t have to worry about it.

So Your indicator is showing Upshring continuing. What is your intuition for the next three weeks?

You know, honestly, I think the beauty of this system is that we really don’t need to know for sure what is going to happen in the next three weeks. The idea here is to take enough of an account.

Of the Russell’s volatility.

That, even if it’s not going up, even if it does come down a bit, it doesn’t come down so much that we don’t make money on the trade, right? That’s why all of our strikes are below the current, price of the stock.

If we were doing right underneath, I mean, that would be extremely bullish. Right? We’re basically saying there’s no way in the next three weeks it’s going to come down below today’s price.

Right? But that’s that’s not very likely. I mean, markets move, they they ebb and flow even in an uptrend. So We’re giving ourselves enough space to say, even if it doesn’t go up, We might still make money.

Do I think that the market is going to keep going up? I mean, I really don’t see anything macro wise that makes me worry that we’re, you know, gonna see a huge correction or anything soon.

But then again, it only takes one unexpected geopolitical event to change that. Right? So you really wanna just be neutral and adaptive when it comes to these things. I try not to forecast the future all that often.

When when I do, it’s because I have some sort of control over that future, and, I don’t control the markets.

So Twenty twenty one winter since the beginning of being pulled a little early on one.

Their system is working beautifully.

Yeah. I mean, I I will say if you have been here since the beginning, obviously, you would have been hearing a lot about, you know, the back test that went behind this and and how we came to the numbers that we presented to you all and why you’re all here.

And you’ve probably been impressed by how much better we’re doing than the back test.

And there’s a number of reasons for that, but one thing that I’ve mentioned is that, you know, the back test, we really were being conservative in how we were accounting for the risk that we were taking.

So even like with losses, we just assumed we were losing it all Every time we had a bad trade, we weren’t assuming that, oh, we’re going to get out early to avoid the loss, things like that. And so even with those really, really kind of harsh losses in the backtest, we still had a robust system.

And now in real life, you know, we’re essentially outperforming that back test because, one, You know, the market’s luckily been, you know, moving in the direction we wanted to.

But also, at the end of the day, we do have the flexibility to make calls and to get out early if we if we think things might not go our way and things of that nature. So overall, I think that what you’ve seen over the last, let’s see, it’s been since May, so over the past five months or so is not just a system that works because of the math behind the system, but it’s one that is inherently adaptable to the market itself.

We’ve always said that if the market did turn for an extended period, we would switch to calls instead of it being vertical puts, it will be vertical calls.

You know, it’s it’s not something we’re stuck in.

It’s something that is inherently flexible.

And I think that you’re going to find that even when the market, and it will eventually happen, Markets don’t always go out forever.

When the market eventually does turn, we’re We’re not gonna be worried.

We’re gonna have a system in place that is built to handle that.

Now no one wants to see that day come, but again, it will come.

And so that’s just something to keep in mind and that we know how to approach it when it comes.

How about E Trade on a phone? You know, a lot of these trades at this point you can do on a phone.

I try not to do them on my phone only because I I just have this this paranoia I guess that something is gonna go wrong in a way that I can more easily control my laptop.

If you, I mean, if you’re uncomfortable with it, whatever works works, but, I think that’s another reason why I don’t tend to use Robinhood for certain kinds of trades.

Obviously, they do have a a desktop version of Robinhood at this point, not just a phone app. But I think mentally, I think of it as that app that started years ago that you know, people were trading penny stocks and or not penny stocks, but There there’s an association with Robin Hood that I think it’s outgrown, but I still have in my own mind. So I see someone asked, are you researching another trade so we might have two trades a week?

Well, as far as research, we’re always researching new strategies.

To either complement what we’re already doing or to enhance what we’re already doing.

So at some point, I’m sure when we have something that we’re very comfortable with, we’ll definitely introduce all of you to it. But as far as are we researching it, Yes. It being anything that seems to work. I mean, research is a very lengthy process.

I think sometimes As someone who’s worked as a researcher for over a decade, I think sometimes it can seem like an easier process than it is when your standards are just to have something that’s enticing on the surface.

But the reality is When I’m back testing strategies, I am back testing something that I want to feel comfortable that I would put my own money in.

And so sometimes I’ll have ideas or I’ll have systems that I’m developing And in a lot of ways it’s making a lot of sense, but something just doesn’t sit right with me as far as maybe the risk that’s evolved or you know, what happens when the market does turn. As I said with this strategy, we know what we would do and how we would handle it.

Sometimes other strategies are built around there always being a rally.

And when that rally is gone, everything falls apart.

And that’s not the kind of That’s not the kind of atmosphere we want with this service. We want something that’s easy, something that allows us to collect income, obviously, and we want something that feels like we’re really not risking much, honestly. Something ultimately conservative. So that’s the sort of stuff that I’m putting my research into or my research hat on for. And I think we’re coming close to at least one idea.

I’ll I’ll I’ll say that much, but but you won’t see it unless we’re very confident about it.

When closing a profitable spread early, what is the goal?

Is it to get the lowest sell price?

So if you’re closing out a spread early, you are buying to close that spread.

So, rather than lowest sell price, you you could say the lowest buy price.

You know, the the goal is really just to to get out early in case, you know, there’s some event or whatever that might make things move in the wrong direction.

I mean, Me, personally, I I wasn’t all that worried about today, but you know, Marc was, and he has every right to say, let’s just get out of the day early.

But again, the goal is to still try to pay as little as you can for that exit. So Ultimately, with the trade that we just closed out, you’re paying versus letting expired and not paying anything, but you’re still collecting a huge, you know, income given that it’s just over three weeks.

I mean, I’m sure some of you have done the mental math.

These are trades that last three weeks. We’re averaging twenty something percent per trade. If you annualize that, I mean, these are huge wins actually.

And ultimately, if you get out a day early and you pay a little bit to get out of the trade, you may have gotten less income than you would have if you let it expire, but annualized, I mean, we’re still talking about really, really good income.

So the goal is just to take a little risk off the table, and you pay to take that risk off the table.

How much time should we allow to elapse between opening and closing vertical spreads and vertical call spreads.

I okay. I think I understand what you’re essentially asking there.

And and That’s where I think expertise kind of comes in.

Marc has long said that, you know, if we have a bad week or two and the market is tumbling a bit, that doesn’t mean we’re gonna just immediately switch to calls because at the end of the day, markets do go up and down even in a rally.

So it doesn’t necessarily indicate that we are entering a bear market or anything like that right off the cuff.

But at some point that determination will made And that’s where it really will come down to what the macro factors are, how the market looks, not just in the Russell but other indexes, if there’s a very general broad trending down.

You know, there are a lot of ways to look at the numbers but it will just have to be a judgment call.

And Marc would likely be the one to do that, of course.

And at that point, we would just switch to it would be essentially the same strategy we’re doing now, but we will be using calls and instead of being three percent below the current price of the index, we would be looking three percent above.

So or If not three percent, you know, maybe if we wanted to be more conservative, five percent.

So things like that would be what we’re changing.

As far as when we would make that change, it really would be a judgment call based off, you know, what does all data look like, not just, you know, the the Russell Index over a couple of weeks, It would really have to be clear that the market in general sentiment has soured, macros are not looking good.

You know, we need really robust reasons to change course essentially. In your backtesting, did you all ever have to switch between put and call strategies?

What we did was we specifically looked at bear markets.

Or I shouldn’t even say bear markets, down markets.

Sometimes they were only a couple months, so I didn’t really wanna But we looked at those periods and implemented this strategy in those periods. And even with the puts, they did perform well. But we also looked with the calls and it it made more sense to go with a call strategy in those periods.

So theoretically You know, you could still perform relatively well sticking with the put strategy.

Because if you are still choosing strike prices far enough from where the index will be at expiration, you’re gonna make money.

So it’s really a matter of the call strategy just being a better performer in those periods.

And also it just makes sense if if there’s a pronounced downtrend.

It just makes sense to to not essentially run bullish strategy, like vertical put spreads.

But, yeah, I mean, we we did look at down markets as well as you know, a rallying market and The system was solid.

And so, again, we’re not really worried about when that day comes.

I just like to emphasize that it will, you know, especially when you’ve had twenty for twenty one, you know, it almost makes you feel like, you’re on top of the world and you should feel that way. But ultimately, Realism.

Is a key to success when it comes to investing and and trading. And there will be a time when the market turns.

Just know that we’ll be ready for that. What about running both calm and put strategies at the same time?

That’s actually something I am looking into.

Kind of reflecting what I just mentioned, there’s something potentially to that if you if you look at the numbers in the right way and can determine a way to keep your risk low, but also playing both sides of the trade.

But like anything else, need to back test that in a systematic way and it can’t just be, our intuition.

We have to actually test it out. But that is, an idea that’s on the table.

Okay, I think, yeah, I think that might be it for today.

But, once again, congratulations on now it’s twenty for twenty one. You know, Marc is a bit more superstitious, so he wouldn’t want me saying this, but I look forward to seeing you next week for twenty.

Twenty one and twenty two.

Now if if we don’t get that, it’ll be my fault because I said that, but I’m I’m willing to take that chance.

So Hopefully, you all enjoy your weekend.