The most powerful thing a casino has over the players and what it means for your trading The most important number in your trading and why it matters (hint: it’s not your P&L) Why Warren Buffet can never bankrupt a casino even if he wants to—and how you can use this technique and make your trading account bankrupt-proof. Learn what it takes to create a profitable trading system that replicates the business model casino's use to consistently beat the players over the long term.

I know I’ve been quiet the past couple of weeks, but don’t mistake my silence for sedation.

I’ve been recharging my batteries and getting my mind right for the year ahead, and now I’m LOCKED & LOADED, BABY!

I’ve come up with a blueprint to make the next trading year a banger, and hope that by this time next year, I’ll be able to donate even more trading profits to St. Jude than I did in 2019.

My path to a million bucks this year is dependent on working my three primary services — Jason Bond Picks, Smoke Signals, and of course, Weekly Windfalls.

The guys and gals who have been with me a while probably know why we call the credit spreads I trade in Weekly Windfalls the “casino strategy.”

But for my newest subscribers (welcome aboard!), let me break it down for you…

And for fun, I’m throwing in a few stats to take to the actual casino this year.

Casino Trading Name

The Casino Strategy

I trade bull and bear credit spreads in Weekly Windfalls.

But what does that mean?

Well, to put on a bull credit spread, I would:

Sell a put option at a strike that aligns with support for the stock
Buy “insurance” on that positionby purchasing a lower-strike put, which protects me in case the stock makes a big move lower

Since the premium I received from selling the first put is more than the premium I paid for buying the second put, the spread is established for a net CREDIT.

Hence the name — bull credit spread.

The credit that I receive from the get-go is the most I can possibly make on the trade, assuming the stock doesn’t move majorly against me and the options stay out of the money (meaning the stock stays above the sold put strike).

My goal is to capture as much of that premium as possible.

If the stock does move majorly against me, though, the “options insurance” I bought via the purchased put limits my risk on the trade.

Specifically, risk is capped at the difference between the sold and bought option strikes, minus the initial credit received.

On the flip side, to put on a bear credit spread, I would:

Sell a call option that aligns with resistance for the stock
”Insure” my sold call by purchasing a higher-strike call, which protects me in case the stock makes a big move higher

But — you know what? Maybe it’s best to teach you with a real trade example.

On Dec. 27, I told my paid Weekly Windfalls subscribers:

I sold the Jan 17 $220 / $222.50 vCs for $1 premium using $15,0000 to try and make $10,000 if I’m right and BABA is below $220 at the close on the 17th. I fully expect to close this trade much earlier than the 17th but wanted to give myself a little time just in case. Hippodrome casino london craps games.

What I like about selling a vertical Call spread on BABA here is the declining volume divergence from price action. Rallies are getting less and less volume and the 7-day RSI is very extended so while it’s still making a new high (yesterday) I think it’s very close to the top.

Casino Trading Group

This means I:

Thought Alibaba (BABA) stock was running out of steam and was overbought, and would stall under the $220 level
I sold the weekly 1/17 220-strike call
I bought the weekly 1/17 222.50-strike call, to limit losses in case BABA continued its rally

I received a credit of $1 for the spread — that would be my maximum profit.

Since I trade 100 contracts at a time, and each option contract represents 100 shares, the credit came out to $10,000.

Then, the most I could lose on the trade was $1.50 per spread ($2.50 difference between strikes minus the $1 credit), or $15,000 (x 100 contracts).

In other words, I was risking $15,000 to make a possible $10,000.

So, how did the trade pan out?

Very well!

Zac brown band hollywood casino amphitheatre june 29. This past Tuesday, Dec. 31, with BABA still trading under $220 (my sold call strike), I cashed in my chips with my spread worth about $5,000 — or about 50% of the premium!

But, you ask, why is it called the “casino strategy,” Jay?

The bull and bear credit spreads are called “the casino strategy” because they give you odds similar to that of a casino — i.e. the best odds.

These spreads tend to profit roughly 70% to 80% of the time, and can make money three ways:

If the stock moves in the anticipated direction
If the stock makes a slight move in the wrong direction
If the stock stays stiffer than James Franco hosting the Oscars

That’s because traders who put on credit spreads are option sellers, even though they also bought an option. (Using the BABA example, had the purchased option cost more than the sold option, it would’ve been a DEBIT spread, and I would be considered a buyer.)

And the odds are in favor of option sellers, because the probability of profiting is greater.

Does that mean you shouldn’t buy options?

Of course not.

In fact, in my new Smoke Signals service, I’m buying only put options, anticipating this bull market to run out of steam soon.

But those are more aggressive trades, with a higher risk/reward ratio. I’ll continue to make my more conservative trades in Weekly Windfalls.

Your Real Casino Handbook

Casino Trading Hours

Now… for what you really came for. 😉

Just for S&Gs, I wanted to share some interesting statistics on actual casino games.

But first, a note about the “house edge.”

The house edge tells you how fast the money will be lost. A player at a game with a 3% house advantage will tend to lose their money three times as fast as a player at a table with a 1% house edge.

That said, according to experts, table games give you much higher odds than slot machines (which we’ll get to later).

However, some people avoid the table games at casinos because they’re intimidated — usually because they’ve never played.

So here’s some advice I found around the web…

Blackjackis one of the easiest table games and gives you the greatest odds of winning.

Goal: For your cards to add up to a number that’s higher than the dealer’s number without going over 21.
The house edge at a Blackjack table is just 1% at most casinos.
The dealer has a slight advantage because the player has to go first.