User
Write something
๐Ÿ”ฅ How The VIP Classroom Works
One of the biggest questions I get is: โ€œHow does VIP actually work?โ€ So let me break it down as clearly as possible. โœ… What You Get Inside VIP When you subscribe to VIP, you get access to the VIP Trade Classroom, where I post the trades Iโ€™m personally taking throughout the market day. The market is open from 9:30 AM โ€“ 4:00 PM EST, and you do not need to sit at your computer all day watching every move. You can simply check the classroom from your phone whenever you have time. ๐Ÿ“ฒ I personally do all of my trading from my phone. Inside VIP, each trade post includes the key details you need: Ticker Expiration date Buy strike Sell strike Suggested fill amount Profit target From there, you simply log into your broker, go to the options chain, place the trade, and set your GTC profit target. Most profit targets are typically around 30โ€“50%, depending on the setup and your own risk tolerance. Some higher-reward trades may have a specific target listed instead. Those can have bigger upside, but they also come with more risk, which is why risk management matters. ๐Ÿ’ฐ Why 1โ€“3 Trades Can Cover the Entire Monthly Cost You do not need a huge account to participate. Many of the trades I post can be as low as $10โ€“$15 per contract. Some trades will be more expensive, and some may not fit your personal risk tolerance, and thatโ€™s completely okay. If a trade feels too expensive, too risky, or you are not comfortable with the suggested fill amount, you can simply skip it and wait for the next opportunity. There are usually around 20 trades posted per day, and realistically, just 1โ€“3 solid winning trades can cover the entire cost of your monthly VIP subscription. That is why, in my opinion, VIP is a no-brainer if you are serious about using options trading as a real income stream. Some trades are time-sensitive. Others are not. Sometimes you may even get a better fill than me. Other times, I may not get filled at all, and I simply move on to the next opportunity. That is trading.
โš ๏ธ Important Community Safety Notice
I want to make this very clear: I will most likely never DM anyone privately, and I will never try to sell you anything through a direct message. Please always check the official username of any profile that contacts you. Unfortunately, even with only 30 members in the group, scammers have already started DMing members while pretending to be me. If you receive a suspicious message, please report and block that account immediately. I have already removed several scammers from the community, and I will continue doing my best to keep this group safe. Again, I will never try to sell you anything through a DM. The only services I offer will always be found inside the Classroom. Iโ€™m very sorry to anyone who has been harassed by low-life scammers or fake profiles. I take this seriously, and I apologize for the inconvenience. Moving forward, I will be doing better due diligence on who I allow into the community. Thank you for understanding, and please stay alert.
๐Ÿš€ Options Trading Basics
If you are brand new to options, this is the foundation. No fluff. Just the stuff you actually need to understand before trading debit spreads. ๐Ÿ“Œ What is an option? An option is a contract that gives you the right, but not the obligation, to buy or sell a specified amount of an underlying asset at a fixed price before expiration. A call gives the right to buy ๐Ÿ“ˆ A put gives the right to sell ๐Ÿ“‰ Standard equity option contracts generally represent 100 shares. โ”โ”โ”โ”โ”โ”โ”โ”โ”โ”โ”โ”โ”โ”โ” ๐Ÿง  Key terms you need to know Strike price = the fixed price where the option can be exercised Expiration date = the last day the option is valid Premium = the price paid for the option Intrinsic value = the in-the-money portion of the premium Time value = the portion tied to time until expiration and implied volatility โ”โ”โ”โ”โ”โ”โ”โ”โ”โ”โ”โ”โ”โ”โ” โš ๏ธ Why buying single options can be difficult Options prices are affected by multiple factors, not just direction. Even if you are right, you can still lose money due to: โณ Time decay ๐Ÿ“‰ Changes in volatility ๐Ÿ’ธ Overpaying for premium โ”โ”โ”โ”โ”โ”โ”โ”โ”โ”โ”โ”โ”โ”โ” ๐Ÿ’ก What is a debit spread? A debit spread is an options strategy where you: โœ… Buy one option โœ… Sell another option โœ… Same expiration, different strike This creates a trade with defined risk and defined reward from the start. โ”โ”โ”โ”โ”โ”โ”โ”โ”โ”โ”โ”โ”โ”โ” ๐Ÿ“Š Example Stock is trading at $110 Buy the $109 call for $1.20 Sell the $110 call for $0.45 Net debit = $0.75 per share or $75 per contract Spread width = $1.00 per share or $100 per contract Max profit = $0.25 per share or $25 per contract Max loss = $75 per contract You are structuring a trade where the outcome is clearly defined before you even enter. โ”โ”โ”โ”โ”โ”โ”โ”โ”โ”โ”โ”โ”โ”โ” ๐Ÿ”ฅ Why use debit spreads? โ€ข Lower cost compared to buying a single option โ€ข Defined risk you know exactly what you can lose โ€ข More forgiving you do not need a massive move โ€ข Reduced impact from time decay compared to single options โ€ข Flexible you can structure trades based on your outlook โ”โ”โ”โ”โ”โ”โ”โ”โ”โ”โ”โ”โ”โ”โ” ๐ŸŽฏ How we take profits
4
0
How to Calculate Profit Targets
How to Calculate Profit Targets on Debit Spreads (40%โ€“50% Rule) Using this $140/$150 call debit spread trade as an example: Step 1: Understand Your Entry and Spread Width Let's say you entered the trade for a net debit of $8.25, and the spread width is $10 (150 strike โ€“ 140 strike). Step 2: Calculate Max Profit For a debit spread, max profit is calculated as: Spread Width โ€“ Net Debit Paid So in this case: $10.00 โ€“ $8.25 = $1.75 max profit This means the most you can make per contract is $1.75 ($175) if the trade expires fully in the money. Step 3: Calculate Your 40% and 50% Profit Targets: Now you take a percentage of that max profit: 40% of $1.75 = $0.70 50% of $1.75 = $0.88 Step 4: Add Profit to Your Entry Price Entry = $8.25 40% target: $8.25 + $0.70 = $8.95 50% target: $8.25 + $0.88 = $9.13 Final GTC (Good Till Cancelled) Limit Orders: Sell at $8.95 for 40% profit Sell at $9.13 for 50% profit This is how you systematically take profits without needing to hold until expiration. You are capturing a portion of the available profit and freeing up your capital to move into the next trade, which is key to maintaining consistency and compounding over time.
4
0
How Options Formula Works ๐Ÿงฌ (Best Practices and Guidelines)
Welcome to Options Formula. This community is built for traders who want a cleaner, simpler, and more disciplined way to trade options using defined-risk debit spread setups. The goal here is not to over-complicate trading. The goal is simple: โœ… Find high-quality setups โœ… Keep risk defined from the start โœ… Take practical profits โœ… Track everything transparently โœ… Stay disciplined over time This is not a hype-based trading group. This is not about gambling on random plays. This is not about blindly chasing unrealistic home runs. This community is built around structure, consistency, transparency, and repeatable execution. โ”โ”โ”โ”โ”โ”โ”โ”โ”โ”โ”โ”โ”โ”โ”โ”โ”โ”โ”โ”โ”โ”โ” What You Get Inside Options Formula ๐Ÿš€ Inside this community, you will get access to structured options trade ideas built around bullish and bearish debit spreads. In the free community, you will receive one free high-probability trade setup per day so you can follow the process, see how the trades are structured, and learn how this system works in real time. For members who want access to all daily trade ideas, VIP access is available inside the Classroom for $129 per month. VIP members get access to the full daily trade flow, including: โœ… Current Daily VIP Trades โœ… Lower-cost trade opportunities โœ… Bullish setups โœ… Bearish setups โœ… Defined-risk structures โœ… Suggested take-profit targets โœ… Transparent trade tracking โœ… A repeatable trade management framework The goal is to give members more opportunity, more flexibility, and more ways to participate based on account size, risk tolerance, and schedule. โ”โ”โ”โ”โ”โ”โ”โ”โ”โ”โ”โ”โ”โ”โ”โ”โ”โ”โ”โ”โ”โ”โ” Why Debit Spreads? ๐Ÿ’ก Everything in this community is centered around debit spreads. A debit spread is an options strategy where you buy one option and sell another option with the same expiration but a different strike price. This creates a trade with: โœ… Defined risk โœ… Defined reward โœ… Lower cost than buying a single option โœ… A cleaner trade structure โœ… Less exposure to time decay compared to buying single options
2
0
1-5 of 5
powered by
Options Formula
skool.com/options-formula-4945
Professional trading community focused on income-driven strategies, risk-defined options ideas, transparent results, and consistency.