Definitely a big day yesterday. More new highs and a strong push by the bulls fueled by optimism on rate cuts next month, but don’t get ahead of yourself. With this market all it can take is one headline (pick your topic) and things can swing. Or we could be trapped in the dreaded range locked market, a nemesis we are all to familiar with. So what is an income seeking trader to do?

Well we have a solution. Remember pro traders don’t sit on the sidelines when the market goes down, or up for that matter. And they also don’t sit back when the market trends sideways. One other thing the pros don’t do–take unnecessary risk. They are expected to produce day in and day out. So we tapped one of our favorite pros to see what he would do to find a trade with a fixed bottom that was where he wanted it and a high probability of some profit. Keith Harwood is a former market maker and he gave us a perfect quick overview of a put credit spread and why it is a tool you want to have handy. Take a look at the chat.

Not only did he explain that put credit spreads are ideal for a market that wants to keep grinding upward but he also walked through a couple benefits that I hadn’t even thought of. I wasn’t event considering that this approach puts a lid on foolish greed and locks in your target profit. He also showed us how his Forecaster Toolbox makes it easier than ever to evaluate options to find the perfect contracts to build the spread. (he offered up a trial for the Forecaster as well).

Book market this chat and keep it handy as you look for ways to pump income out of the market.

Keep learning and trade wisely.

John Boyer

Editor

Market Wealth Daily