Why Deep OTM Options Are Dead… And What Blew My Student’s Mind Instead
Ahoy there, Trader! ⚓️
It’s Phil…
He’d been doing everything “by the book”…
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Selling deep out-of-the-money credit spreads
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Sell spreads at 10 to 30 delta
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Go 30 to 45 days out
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“Let theta do the work,” they said
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- Collecting pennies… waiting days or weeks… praying the market didn’t sneeze the wrong way
“High probability,” they said.
“Safe income,” they promised.
“Just let theta do its thing,” they told him.
But despite the high win rate, something didn’t add up:
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Returns were anaemic
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Stress was high
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And one trade could still wipe out weeks of wins
It felt professional. It sounded intelligent.
But it was a slow bleed of time and risk.
The math didn’t lie. He was risking $900 to make $100.
And when I asked him, “How many trades would it take to erase your year?”, he paused.
One loss?
Gone. Months of gains, poof.
But after one chat with me, he was stunned.
His exact words: “Wait… you’re selling ATM spreads… and you’re out of the trade in HOURS?”
Yep.
Welcome to the Pulse Bar Method.
And that’s when everything changed for him.
SPX Options = Cashflow Engine.
With this setup? It’s practically an ATM with a checklist.
The Moment He Saw The Light
Then we got on a call.
I walked him through my SPX Income System… and the numbers didn’t lie.
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ATM spreads, not far OTM
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0-day to 7-day expiry, not 45 days
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3 to 5 hour trades, not month-long marathons
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And the trigger? Pulse Bars.
He leaned in.
“You’re telling me… you’re in and out same day, and getting $250 per spread?”
Yep.
Instead of “set and hope,” it’s:
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Scan → Signal → Execute
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Defined risk, defined premium
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And if it’s not there, we stand aside
His face said it all.
He wasn’t just seeing a new trade setup.
He was seeing a new model of income.
One that made sense.
One that worked with his lifestyle.
One that didn’t have him glued to a chart hoping 30-delta would behave.
That’s when he said, “Phil… I think I’ve been doing it wrong for years.”
He realised he didn’t need 85% win rates to feel safe.
He just needed better maths, less time exposure, and a system with real rules.
That’s the moment his income model snapped into focus.
Old Income Math vs. New Income Math
We compared notes:
| Old Way | New Way |
|---|---|
| Risk $900 | Risk $250 |
| Make $100 | Make $250 |
| Wait 45 days | Wait 3–5 hours |
| One loss = game over | One trade = solid edge |
He had the same realisation most traders get once they step into my system:
“Why the hell am I waiting weeks to make less… while risking more?”
The answer? Habit.
And a market full of advice that hasn’t kept up with what’s possible.
This isn’t just about premium.
It’s about time risk. Emotional stress. Capital efficiency.
In my system, we:
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Sell ATM SPX credit spreads
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Use a mechanical Pulse Bar entry
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Trade 0-DTE for speed and defined results
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Aim for 80%+ of max profit same day
But once he understood the directional edge from Pulse Bars + Tag ‘n Turn swings, it clicked.
This wasn’t just a better payout.
It was a whole new model of income trading.
No guesswork.
No staring at the screen all day.
No waiting 3 weeks to see $35 finally hit your account.
Just clarity, control, and cashflow.
From Doubt to Decision
He sat back and asked the only question that mattered:
“But isn’t this riskier?”
I said:
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The risk is still defined
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You’re just getting paid more to take it
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And you’re only in trades when the math backs it up
He nodded slowly.
“That makes way more sense than what I’ve been doing.”
The next day, he joined my Fast Forward Mentorship.
He didn’t need more time to think about it.
He just needed one truth:
If your income model relies on “waiting 45 days and hoping,”
then it’s time to upgrade.
He realised that “safe” had become stale.
And that the real risk was sticking with what used to work.
Happy trading,
Phil
Less Brain, More Gain
…and may your trades be smoother than a cashmere codpiece
p.s. There are 3 ways I can help you…
- Option 1: The SPX Income System Book (Just $12)
A complete guide to the system.
Written to be clear, concise, and immediately actionable.
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Includes the video walkthroughs, tools for TradeStation & TradingView, and everything I use daily. Plus 7 additional strategies
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No fluff. Just profits, pulse bars, and patterns that actually work.
