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
Weekly option income strategies are often judged one week at a time. A good week feels validating. A bad week feels like failure. That framing is understandable—but it’s also misleading. After reviewing the results of hundreds of option income trades structured around weekly expirations, one conclusion becomes clear:
Consistency is not visible at the weekly level. It only emerges over time.
This article explores what the data actually shows about weekly option income when trades are evaluated as a system, not as isolated outcomes.
Weekly Income Is a Rhythm, Not a Guarantee
Weekly option income strategies operate on a recurring cycle. Each week, some positions expire and new ones are initiated to expire 4 Friday's later. Over time, this creates a steady rhythm of premium collected and risk reset. But “steady” does not mean uniform. A realistic pattern looks like this:
- most weeks are modestly positive,
- some weeks are close to flat,
- and occasionally there is a losing week or a larger drawdown.
Viewed in isolation, any single week can appear disproportionately important. In reality, individual weeks are noisy snapshots. The meaningful signal only appears when results are viewed across many weeks and months. The data shows that consistency lives in the pattern, not in demanding that every week be positive or predictable.
Why Weekly Results Shouldn’t Be Compared Week by Week
Many traders instinctively compare their weekly option income results to the S&P 500. While this comparison can be useful, it often becomes misleading when done too frequently. The S&P 500’s returns are driven almost entirely by price appreciation and dividends. When markets are flat or volatile, returns can stall or reverse. Option income strategies behave differently. Their primary driver is premium, which continues to accrue even when prices move sideways or fluctuate within a range.
Over longer periods, this difference becomes meaningful. When evaluated quarterly or annually—rather than week by week—option income strategies often display:
- shallower drawdowns,
- fewer extended flat periods,
- and lower variability of returns.
Even when total returns are similar, smoother compounding can produce a more durable long-term profile.
Stock Performance and Trade Performance Are Not the Same
One of the most common sources of confusion in option income trading is the assumption that good stock performance should always translate into good trade performance. The data suggests otherwise. A stock can drift sideways, rise slowly, or even decline modestly and still generate profitable option income. That’s because trade outcomes depend less on direction and more on:
- how much premium is collected,
- how far strikes are set from the current price,
- and how the stock behaves relative to those strikes during the option cycle.
Conversely, a strong stock can occasionally produce a losing option cycle if a sharp move occurs at the wrong time. Over time, trade-level results tend to be smoother than the stock’s price path itself, because premium income absorbs much of the noise.
Premium Income Is the Smoothing Mechanism
The most consistent finding across hundreds of trades is the stabilizing role of premium income. Premium cushions pullbacks, softens drawdowns, and reduces dependence on precise market timing. Because positions are staggered across multiple expiration cycles, only a portion of the portfolio is exposed to expiration outcomes in any given week. This distribution of risk reduces the odds that everything goes wrong at once. Premium also acts as a built-in buffer. Each cycle’s income lowers effective cost basis and widens the range of acceptable outcomes. Even when a trade loses money, the loss is often smaller than it would have been without the upfront premium. This recurring income stream doesn’t eliminate drawdowns—but it tends to make them shallower, shorter, and easier to recover from.
What the Data Ultimately Suggests
Across hundreds of trades, the same lesson appears repeatedly:
- Weekly option income strategies are not designed to look impressive every week.
- They are designed to be measured over time.
- Consistency comes from structure, repetition, and realistic expectations—not from eliminating losses.
Traders who evaluate results over longer windows are far more likely to stay disciplined through both favorable and challenging periods. Those who fixate on individual weeks often abandon otherwise durable strategies prematurely.
Final Thought
Weekly options can support a remarkably smooth income profile—but only when judged at the right time horizon. When trades are structured thoughtfully, exposure is distributed, and premium income is treated as a long-term engine rather than a weekly scorecard, the data shows that consistency is not an accident. It is a byproduct of design.
(This research forms the foundation of the Bull Strangle strategy, which applies these principles using stock-backed option positions, strict risk controls, and a four-cycle structure to create a repeatable income framework.)
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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