Dual Edge Research publishes two powerful newsletters that work great individually — and even better together. The Bull Strangle Newsletter focuses on stocks and options, combining stock ownership with premium-selling strategies to generate consistent income and market-beating returns. The Smart Spreads Newsletter specializes in seasonal commodity futures spreads, offering a diversified approach with low correlation to equities. Together, they deliver a complete investment perspective — one focused on income, the other on diversification — all under one simple subscription.
Introduction
One of the biggest misconceptions in options income trading is that the strategy itself does the heavy lifting. Structure matters—but over time, results are driven just as much by which stocks are selected as by how trades are constructed. That idea sits at the center of how I build and refine my weekly watch list.
Each week, the goal is not to find the most exciting stocks, or even the ones with the highest implied volatility. Instead, the focus is on identifying stocks that exhibit consistent, stable price behavior, supported by strong liquidity and well-defined technical structure. These characteristics tend to produce more reliable outcomes when paired with income-focused option strategies. Recently, I’ve been placing even greater emphasis on stability—and two stocks from this week’s watch list illustrate why that matters.
Cisco Systems Inc. — Stability Within an Uptrend
Cisco continues to demonstrate one of the cleanest technical structures in the market. The stock remains in a well-defined longer-term uptrend, supported by rising moving averages and relatively controlled price movement.
After a strong rally earlier in the year, CSCO has transitioned into a sideways consolidation phase, holding above key support levels while momentum resets. The 50-day moving average has begun to flatten, and price is stabilizing just above it. This type of behavior is exactly what we look for. The stock is not trending aggressively higher or breaking down—it is absorbing prior gains and establishing a new base. That tends to create a more predictable range, which is ideal for income-oriented positioning.
HSBC Holdings plc — Pullback Into Support
HSBC presents a slightly different—but equally useful—setup. The stock had been in a strong uptrend through early 2026 before experiencing a sharp pullback from recent highs.
That pullback broke the short-term trendline, but importantly, the decline found support near the rising 100-day moving average. Since then, price has rebounded and is now attempting to stabilize near the 50-day moving average. This type of setup—trend, pullback, and stabilization—often creates a well-defined range as the market digests the prior move. Like Cisco, HSBC is not exhibiting chaotic price action. Instead, it is transitioning into a more controlled structure.
What These Setups Have in Common
While CSCO and HSBC arrived at their current positions differently, they share the same key characteristic: They are both moving toward stability. That matters because income strategies tend to perform best when:
- Price movement is orderly rather than explosive
- Support and resistance levels are clearly defined
- Volatility is present—but not erratic
In other words, the goal is not maximum movement—it is manageable movement.
From Watch List to Strategy
This is where the broader approach comes into play. Each week, the watch list is built to identify stocks like these—names with:
- Strong liquidity
- Consistent behavior
- Defined technical structure
Those stocks then become candidates for a strategy that combines long stock ownership with dual option selling, designed to generate income while maintaining exposure to the underlying. The structure itself is straightforward. Shares are purchased, and options are sold both above and below the current price to create a defined income range. When applied to stable stocks, this approach seeks to capture premium while allowing the position to evolve within a controlled price environment.
Final Thoughts
The takeaway is simple, but important:
The effectiveness of an options income strategy begins with the quality of the underlying stock.
CSCO and HSBC are not on the watch list because they are exciting. They are there because they are behaving well—and over time, that tends to matter far more.
Want to See the Full Watch List?
Each week, I publish the full Bull Strangle Watch List along with trade candidates, scoring, and positioning insights. If you’re interested in seeing how these stocks are selected and used within a structured income approach, you can learn more about the Bull Strangle Strategy and Newsletter through my latest updates.
More Information
Now you can get two powerful newsletters — for one simple price!
- For stocks and options, the Bull Strangle Newsletter shows you how to combine stock ownership with dual option selling — a disciplined strategy that has consistently outperformed the S&P 500.
- For commodity futures, the Smart Spreads Newsletter focuses on seasonal commodity spreads — a proven, low-correlation approach that thrives in all types of markets.
Each newsletter is designed to deliver consistent income on its own — but when used together, they create a complete, diversified trading approach that works in any market environment.
Visit BullStrangle.com to subscribe for just $1 for the first month.
For a video overview of the Bull Strangle Newsletter
For a video overview of the Smart Spreads Newsletter
Darren Carlat
Dual Edge Research
(214) 636-3133
DualEdgeResearch@gamil.com
Disclaimer
This information is for informational purposes only and should not be considered as investment advice. Past performance is not indicative of future results, and all investments carry inherent risk. Consult with a financial advisor before making any investment decisions.
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