The M3 Trading Strategy

The M3  is a high probability, market neutral, positive Theta options trading strategy, which means that the trade tends to generate its profits over time rather than through price movement. This options trading strategy was developed in 2007 and has been traded by hundreds and hundreds of traders through all market types, making this options trading strategy the most time tested income trading strategy available today. This trading strategy was designed to be used on the Russell 2000 (RUT) index using butterflies with call options.

Returns of this trade: This options trading strategy earned about $5,534 profit or about 11% of the planned capital of $50,000.* Click here to view some annual returns*.

Minimum Capital Required: $5,000 per trade

Example size: $50,000 planned capital

Profit Target: 10% or $5,000 for this example

Exit Loss Trigger: 10% or $5,000 for this example

Entered Trade: 56 days to expiration

Trade Duration: Up to 56 days

Trade Configuration: Butterflies with call options

Trade Adjustments: Yes. Rolling and verticals

Overlapping Trades: Yes

Why do we love this trading strategy? It performs well over an extremely wide range of market conditions.

Seth Freudberg, Director of the SMB Options Training Program was asked:

“Why is it the M3 has made my options trading better?”

He responded “Because until I discovered the M3, I really was not exposed to other strategies that had such outstanding risk control. So that what would happen is that I’d just get murdered in bad months and I wouldn’t be able to make it back up in the good months. But with the M3, pretty much no matter what the market does there is a strong viable answer that usually solves the problem and brings you back into profitability. Every strategy has a losing month or two a year, that’s just this form of trading but with the M3 you just always feel like you’re under control. It does wonders for your confidence as an options trader because your win rate is so high you feel completely in control of the risk of the trade and it’s really just changed everything for me.”