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
For many traders, generating steady income from the markets feels like trying to hit a moving target. Some weeks offer opportunities everywhere; other weeks bring unexpected losses, sharp reversals, or emotionally driven decisions that unravel an entire month of progress. What most investors eventually discover is that inconsistency isn’t caused by the market—it’s caused by the absence of structure. That is where a rules-based weekly options strategy comes in. Instead of relying on forecasts, gut feel, or rapid-fire adjustments, this approach uses a systematic framework that combines stock ownership with the disciplined sale of options. The goal is not to chase high-premium trades or predict short-term moves, but to harness the steady, dependable forces that drive most option-income results:
- Time decay
- Volatility inefficiency
- Capital consistency
Stock Ownership as the Foundation
The core idea is simple. Rather than selling options “naked” or depending on directional bets, the trade begins with owning shares of stable, mid-priced stocks. The shares act as the anchor. They define the boundaries of risk, remove the unlimited upside exposure of uncovered calls, and allow the trader to operate from a position of strength instead of speculation. The options, meanwhile, serve as the income engine. Every week, the trader sells premium against the stock position and holds it through expiration, collecting time decay as the primary source of profit. This structure creates a quiet, predictable rhythm to the strategy—one that does not require intraday monitoring or constant second-guessing.
A Weekly Cycle That Creates Discipline
One of the most powerful features of this approach is its timing structure. Trades are opened on the same day each week—typically Monday—and held until they expire four Fridays later. As one cycle ends, the next begins, producing a natural four-week ladder of positions. This cadence keeps the strategy remarkably stable. There are no mid-week decisions, no discretionary adjustments, and no emotional exits prompted by temporary price swings. Instead, the trader benefits from the consistent march of time decay, while diversification across four active cycles smooths results over the course of the month.
Choosing Strikes With Durability in Mind
Success in weekly income strategies rarely comes from chasing the largest premium. Instead, it comes from choosing strikes that sit far enough from current price to provide breathing room. When strike distance is set objectively and applied consistently, the results tend to follow suit. This rules-based approach favors modest, repeatable premium over “hero trades.” The intention is not to guess where a stock will go, but to create enough margin for normal price fluctuations while allowing time decay to do most of the work. Over hundreds of trades, this consistency becomes one of the most powerful forces in the strategy.
Building a Tradable Universe of Stocks
Not all stocks behave well under weekly option selling. Thinly traded names, highly volatile stocks, and companies with erratic earnings schedules introduce unnecessary risk. For this reason, a rules-based system filters for stocks that display reliable liquidity, moderate volatility, and predictable corporate calendars. The result is a curated list of candidates that are not only suitable for weekly income but also diverse enough to prevent concentration in any single industry or sector. This universality is what makes the strategy accessible to a wide audience—from conservative investors seeking enhanced yield to more active traders wanting structured exposure.
Capital Rules That Keep the Strategy Stable
Perhaps the greatest advantage of a rules-based framework is its ability to control risk through capital discipline. Every position is sized according to the trader’s total account value, not according to impulse. Weekly allocations remain constant, and a built-in cash buffer protects the portfolio from unexpected events. This approach prevents the most common pitfall in options income trading: letting one oversized position destabilize the entire account. When losses do occur—and no strategy eliminates them—position sizing ensures they remain manageable. Consistency is preserved because capital never drifts outside the intended structure.
Managing Earnings and Event Risk Before It Happens
Weekly options strategies face a unique danger: earnings announcements. A surprise earnings release can move a stock dramatically in either direction, overwhelming even the best-constructed trade. The solution is not to predict earnings outcomes but to avoid them altogether. A rules-based system removes any stock whose earnings fall within the expiration cycle. And if a company unexpectedly changes its reporting date, the trade is closed early. These decisions are not emotional—they are mechanical safeguards designed to keep the strategy resilient.
Why Structured Systems Produce Consistent Income
At its heart, this framework succeeds because it focuses on things that are dependable, repeatable, and statistically favorable:
- Time decay accelerates as expiration approaches, regardless of market direction.
- Implied volatility frequently overestimates future movement, creating a natural advantage for option sellers.
- Diversification across names and weekly cycles smooths out performance.
- Capital discipline ensures that no single week becomes catastrophic.
By putting all of these concepts under one organized set of rules, the trader eliminates randomness and leans into reliability. Instead of reacting to the market, the trader follows a steady, rules-based path that produces consistent weekly income over time.
A Simpler, More Predictable Way to Trade Options
For many investors, this structured approach becomes a welcome alternative to the chaos of discretionary trading. It removes the noise, reduces the emotional burden, and focuses on mechanical execution—qualities that appeal to new traders and experienced investors alike. In a market that never stops moving, sometimes the smartest strategy is the one that moves the least. A disciplined, rules-based weekly options framework offers exactly that: a stable, repeatable way to generate income without relying on prediction.
For readers who want to see how such a framework performs in real time, the Bull Strangle Newsletter applies every rule discussed in this article within a fully transparent model portfolio. Each week, it demonstrates how a structured system translates into practical trade decisions, offering a real-world example of consistency through rules rather than forecasts. If you’re interested in following a weekly rules-based income strategy step by step—and seeing how it’s executed in live market conditions—consider subscribing to the Bull Strangle Newsletter and join a growing community of traders focused on discipline, structure, and long-term consistency.
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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