Financial Freedom Friday
TURNING KNOWLEDGE INTO WEALTH BY $MAXWELL
TL;DR: Today I’m pulling back the curtain on how to “fact-check” any trading mentor (including me) using simple charting tools. I’m also sharing an example on a BAC trade and explaining the “1% Rule” so you don’t get stuck overthinking trades to keep trading passive and stress-free.
I remember signing up for a “masterclass” several years ago that was sold as a passive way to make money by selling credit spreads.
It sounded perfect: you don’t have to be at your computer, you collect “mailbox money,” and wealth just shows up. Sounds great, right??
I’m not joking when I say every single trade lost. I was bleeding money on this passive strategy.
But that wasn’t the frustrating part, I’ve been trading for almost 30 years, so I’m used to losing. What annoyed me was the leader. He told us he was winning while I was losing. His “passive” strategy actually required him to double or triple down, buying and selling options for profits. Sometimes he’d be in and out of a hedge before I even opened my email. He was making adjustments every 30 minutes while I was busy living my life. Not the passive system I expected…
I almost said “forget this” to the whole idea of passive market income. But I wanted freedom too much to stop.
That’s why I now focus on simply explained, math-based strategies that make sense to everyone: like the “Cabbage Patch Kids” analogy in my income replacer blueprint. You remember those baby dolls from the 80s??? Please don’t tell me you weren’t born yet in the 80s…. I already feel old as it is.
How to Fact-Check Any Guru (The Math Doesn’t Lie)
There are too many salesmen out there instead of traders teaching others. The good news is that you can easily track the price of an options contract to see if someone is telling the truth.
In Tasty:
Right-click on the specific option you want to chart.
For example, in the Bank of America (BAC) chain, you can see the trade price of an option move from .50 to .80 in a single day (the last candle)
In ThinkorSwim:
1.. Right-click and copy the option you traded.
2.. Go to the Charts tab and paste that long option name.
3.. You will see the exact price history of that specific contract.
If a someone says a trade “hit a target,” but the chart shows the price never got close, they aren’t being honest with you. You will never see that happen with me, I have a system that works, I don’t need to fabricate day trade hedges or adjustments.
New Trade: Bank of America (BAC)
Let’s talk about something that trips up a lot of traders. It’s trying to catch the bottom or top… I just posted this put sell in our Discord This week. I am willing to own this bank at this level.
- Trade: Sell to Open (STO) BAC Feb Puts
- Strike: $50
- Expiration: February 20, 2026 25
- Credit: $55
The 1% Rule for Passive Income
If you were to follow my moves (I don’t post for you to follow me, this is for education only), you might get a different fill price. For example, if I get .60 and you can only get .55, don’t be afraid to take the trade if it meets the 1% rule. You can make a good return if you stick to the 1% minimum!!
I look for a 1% return for every 30 days. Anything over that is a bonus, but it shouldn’t keep you out of a solid, passive trade.
Don’t try to day-trade these strategies and end up missing them all together. That happens a lot too. You try to get greedy and end up missing the entire trade. Find the trades that meet the minimum return, setup your GTC and setup an alert at the strike price, then let the math work.
Join the Inner Circle:
One trade a week is powerful. Our Weekly Income Newsletter, which started in May of last year, is already up $3,189.34 just by trading a single contract of a stock under $100 once a week.
If you want to see my moves in real-time and get direct coaching, this is your shortcut to consistent income.
Turning knowledge into wealth,
