Dual Edge Research offers two newsletters, the Bull Strangle and Smart Spreads. The Bull Strangle focuses on stocks and options for consistent income and market-beating returns. The Smart Spreads specializes in seasonal commodity futures for diversification. Together, they provide a complete investment perspective under one subscription, focusing on income and diversification.
The Bull Strangle Newsletter offers a rules-based weekly options strategy that combines stock ownership with the sale of options. This strategy aims to harness time decay, volatility inefficiency, and capital consistency for steady income generation. The approach provides structure, predictability, and discipline to trading, eliminating the need for forecasts or gut feelings.
The core idea of the Bull Strangle strategy is to start with owning shares of stable stocks, then selling options against them each week. This creates a reliable rhythm that does not require constant monitoring or quick adjustments. By combining stock ownership with disciplined options selling, traders can generate consistent income without chasing high-premium trades or making short-term predictions.
One of the key features of the Bull Strangle strategy is its four-week cycle. Trades are opened on Mondays and held until expiration four Fridays later, creating a stable and predictable trading cadence. This approach eliminates mid-week decisions, discretionary adjustments, or emotional exits caused by temporary price fluctuations. Diversification across four active cycles helps smooth results over the month.
Success in weekly income strategies comes from choosing strikes that provide enough breathing room from the current stock price. By setting strike distance objectively and consistently, traders can benefit from time decay and normal price fluctuations. The goal is not to predict stock movements but to create a margin for profit while leveraging time decay. This rules-based approach favors repeatable premium over risky “hero trades.”
To ensure the strategy remains stable, a rules-based system filters stocks that display liquidity, moderate volatility, and predictable corporate calendars. This curated list of stocks is diverse enough to prevent concentration in any single industry or sector. Capital discipline ensures that risk is controlled through consistent position sizing, preventing any single oversized position from destabilizing the entire account.
Earnings announcements pose a risk to weekly options strategies. To manage this risk, the Bull Strangle strategy avoids stocks with earnings releases during the expiration cycle. If a company changes its reporting date unexpectedly, the trade is closed early. These mechanical safeguards are designed to keep the strategy resilient in the face of unpredictable events.
By focusing on reliable, repeatable, and statistically favorable factors like time decay, implied volatility, diversification, and capital discipline, the Bull Strangle strategy aims to produce consistent income over time. Eliminating randomness and relying on rules rather than predictions offers traders a simpler, more predictable way to generate income through options trading.
Structured systems like the Bull Strangle strategy provide a disciplined, rule-based approach to trading options. By removing noise, reducing emotional burden, and focusing on mechanical execution, this strategy appeals to both new traders and experienced investors. A stable, repeatable way to generate income without relying on prediction can offer a welcome alternative in a constantly moving market.
Read more at Barchart: A Rules-Based Options Strategy for Consistent Weekly Income