Victory Spreads Options – ‘Return on Risk’ on Steroids!

Victory Spreads – Low Risk Option Trading at its Best

Victory spreads are a powerful yet simple way to make money with options. They are an extremely low risk trade but with unlimited profit potential. It’s potential “return on risk” is massive if the underlying moves in the direction you anticipate, which means that you only need a few of these to work out for you each month and it’s almost impossible for you not to make an overall profit . . . . .

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This option spread is an option trading strategy that was developed by a veteran trader of 30 years, who ran a brokerage firm in New York city. He was going to retire but decided not to. Instead, he now runs a small hedge fund that only does the Victory Spread strategy.

You may have heard of back-ratio spreads (some call them ‘vacation spreads’). The Victory Spread is similar in approach to the back-ratio spread, but the way the deal works out is so much more favourable to the person putting it on. You can risk as little as $20 to $50 on one of these trades, but when they pay off, the return is in the thousands so the return on risk is most impressive. You can even sometimes make a small profit when the underlying price action doesn’t move as expected – and even if it really tanks you might lose around $15. It’s almost a risk free trading strategy!

Here’s an example of a Victory Spreads Risk Graph.

More Info on Victory Spreads Options Strategy Here

Victory Spreads – A Better Alternative Than The Straddle

The best stocks to use this strategy on, are ones currently in the news, or that you believe may be due for a large move to the upside before the expiration date of one leg of the option spread. A prime target would therefore be, companies which are due to release favorable Earnings Reports in the near future. But companies with rumors around about being possible takeover targets are best for this particular strategy, because once the bid is made, the price invariable goes up quite dramatically.

You can just “set and forget” these kind of trades, because one leg of the trade involves a long dated option. You can also take positions where the prospective outlook is either to the upside OR the downside – in other words, using both call and put options.

The secret to profitable Victory spreads, is how you structure them. It’s not a difficult or complex operation – very simple in fact – but you will need a brokerage account such as ThinkorSwim which allows you to graphically analyze your trade before you execute it. If you’re not with ThinkorSwim, you’ll need some other options analysis software.

If you don’t want to pay for this, you can get a free Excel based options strategy evaluation tool by Peter Hoadley that gives you a nice pay-off diagram.

The Victory Spread is explained fully in module 11 of the Trading Pro System – a series of downloadable videos that teach you a number of safe and consistently profitable option strategies for regular monthly income.

However, if you don’t want to pay the full price of the complete Trading Pro System package, they are also selling a singular video exclusively about the Victory Spread for only $27. Believe me, if you know how to use this strategy, that price tag seems a small price to pay for inside knowledge about a virtually zero risk option strategy with massive profit potential.

More Info on Victory Spreads Options Strategy Here