Options Spread Trading Approval from Your Broker with The Blueprint

Got a call from a concerned Blueprint owner the other day.  His concern was trading like he’s learning in our Blueprint but not being able to use options spreads income methods. His broker denied his approval to trade option spreads.

Spread trading approval DENIED!

Note: Trading as we teach in The Blueprint means that a spread trade is entered in the context of a married put. Using a married put in conjunction with the spread position makes the spread safer. Most brokers don’t realize this fact or they aren’t allowed to consider it – but it’s the reality.

This student was concerned about how important the spread trading limitation would be for applying the Blueprint married put methodology. So, I’m writing up this quick article in case any of you had/have the same concern.

The use of spreads is just one of several ways you create income. Not using spreads is NOT a huge limitation to our married put methodology.  Don’t let the spread trading permission stop you from trading the Blueprint methodology.  Blueprint income methods 1, 2, 3, 4, 9, 10, and 12  are all available to you – without the use of spreads.  In my own trading, I use 1, 2, 4, and 9 most often and I seldom use the other income methods.  In general, the income from writing covered calls (IM#1) will be larger than selling spreads.

Income is created using method IM#1 (writing a covered call) or manipulating the put with IM#9 or IM#12 when the underlying stock declines.  This income lowers risk in (maybe even bulletproof) the position by eliminating the cost of the put insurance. Of course, you could just withdraw the cash as supplemental income too.

Please reply below or send us an email if you need help or have questions.

The Blueprint

Limited Risk Investing with UNlimited Profit Potential

About Ernie Zerenner

I'm a self-directed investor since retiring from the Hewlett Packard Company. I have been a stock and options investor for over 50 years and currently trade for my own account. I own both the RadioActiveTrading and PowerOptions web sites. I use the tools we've developed there to find, analyze, and manage trading. Most of my trading activity uses the principles I teach in The Blueprint so I'm always hedged for safety.