Let’s talk about building safe, reliable options trades — especially in a market that’s as unpredictable as a holiday week. If you’ve ever wondered how to reduce risk while aiming for consistent returns, this is for you!
My approach to options is designed with safety first — returns come second.
For example, in a recent trade on Freeport-McMoRan (FCX), we structured it to hold from Thursday through Monday morning. The result? A conservative 10% profit over the weekend. That’s not chasing the wild returns of 50% or more…
It’s smart, steady growth.
The key is defining a wide range for the stock’s movement and understanding its Average True Range (ATR). For FCX, we set up a range that accounted for its typical movement, allowing us to profit as long as the price stayed within that boundary.
Even if the price had moved significantly — all the way to the edge of the range — the trade would still have been profitable. It would have taken a Black Swan event to cause a loss here.
This is why I prioritize trades like these.
They’re not about gambling on huge moves — they’re about making a calculated bet that the stock will stay within a reasonable range. For this trade, we even benefited from the weekend’s market closure — no movement on Saturday and Sunday gave us built-in time decay, adding to our returns.
Now, let’s address a common question…
Why exit early in the morning?
The open is one of the most volatile periods of the trading day. Spreads are wide, and prices fluctuate rapidly as the market digests overnight news. By holding steady and waiting for spreads to tighten, we maximize our chances of getting executed at a favorable price.
Some members even reported exiting later in the morning for a slightly higher return due to additional time decay.
This method isn’t about predicting whether a stock will skyrocket or tank — it’s about designing trades that work even in sideways markets. The focus is on safety, reliability and understanding the mechanics of how options decay over time — AKA theta.
If you’re looking for a flashy “double your money overnight” strategy, this isn’t it.
But if you want steady, consistent results — the kind that build wealth over time — then this structured options approach is worth exploring.
And remember…
Safety comes first in every market condition.
Let the returns follow naturally from smart, disciplined trade design. If you want to learn more about this strategy, you can join me and Roger live at 2 p.m. ET on Thursday, March 13!
Kane Shieh
Kane Shieh Trading
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*This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk.
P.S. Weird Options Anomaly Opens Doors to Extra Income Over the Weekend
Thanks to this discovery by Kane Shieh and Roger Scott, you can now target extra income…
Even while the markets are closed for the weekend!
