[00:01] very powerful trading strategy that has a 91% win rate and it made $176,000 in total profits. This is a mechanical option strategy. That means it's super
[00:13] easy and beginnerfriendly and it does not requires any technical analysis or watching charts. In fact, I can make these trades without even looking at the charts and still win 90% of the time. It turned $25,000 into $21,000
[00:27] turned $25,000 into $21,000 with a total profit of 176,000 and a return of 705%. This is a set and forget system and it does not requires day-to-day trade management. I only have to manage these
[00:40] trades on a monthly basis. So every month I take profits on my previous trades and open one or two new trades. We only have to trade one ticker which is QQQ. It represents the top 100 NASDAQ stocks. My name is Ravish and I a
[00:54] full-time options trader. I've made multiple seven figures using option strategies like this. So if you like this video, like and subscribe to my channel so I can share more strategies like this with you. Before we dive into
[01:06] the strategy, I want to give this obvious disclaimer that this video is for educational purposes only. This is not a financial advice. So do your own research for suitability before trying any strategies. If you're new to
[01:19] options, let me give you a quick overview of how LEAPS options work. LEAPS are basically long-term call options. This is a Pelosi special strategy. This is how Nancy Pelosi makes tens of millions of dollars in the stock
[01:31] market. It is a stock replacement instrument that gives you exposure of 100 shares for a fraction of a cost. So, for example, if you were to buy 100 shares of QQQ, it is going to cost you well over $50,000. But you can buy a
[01:46] LEAP options with one-year expiry for just $5,000 and it is going to give you exposure of 100 shares. It has a very slow theta decay which gives you a lot of time to be right and it has unlimited upside but limited downside. Typically
[02:02] we want to have one year or longer expiry date and go within the money options with 60 to 80 delta. Now let's dive into the strategy. My trade outlook for these trades is 3 to four months. Now, based on the market data, QQQ moves
[02:17] Now, based on the market data, QQQ moves up 5% or higher in 85% of the quarter and it has a 10% upward move in 50% of the quarters. That means if you make trades like this every quarter, we have a pretty good shot that at some point
[02:31] over the next quarter, they are going to hit our profit target. Now leaps can make 50% profit when QQQ moves up 6 to 10% within the next 3 to 4 months. For this strategy, I need to follow a very simple set of rules to open and manage
[02:46] my trades. Now the first thing is trade entry. How do we decide when to enter this trade? And there is a very simple rule for that. The rule is that I open these trades when QQQ is down by at least 1% in a day. It can open at gap
[03:03] down of 1% in a day or it can go down minus 1% in a day. So whenever QQQ goes down by 1% in a day, I'm going to open one trade with one contract and for that
[03:15] I'm going to open a 60 delta call with 12 months expiry. I will show you how to do that in just a minute and I will take profit at 50%. So once I open this trade, I will let it run for a couple of months and as soon as it goes to 50%
[03:31] profit, I'm going to take profit on it. I do not use any stop-loss on these trades because some of these trades can go down a lot before they go into profit. But like the data says that 91% of these trades go to profit within 3 to
[03:47] 4 months. This gives me an average risk-to-reward of 2 is to1. That means I have 35% edge. So after factoring in the winning and losing trades, on an average, I tend to make about 35% profit on every single trade. Now let's go over
[04:03] the results for this strategy. So over the last 2 and 1/2 years, starting from the last 2 and 1/2 years, starting from 2023 to 2025, this strategy actually had a 100% win rate. This strategy made 32 trades over the last couple of years,
[04:17] and it won all of them, not even a single losing trade. And if you took all of these trades with just one contract every time, it would have made $79,000 in total profit. The average trade duration for these trades was 68 days,
[04:33] and it made $2473 on average, and the biggest win was $3,632. Now, let's go over the results for the last 5 years. the last 5 years, it had a 91% win rate with 102 wins in just 10
[04:49] 91% win rate with 102 wins in just 10 losses with a total profit of $176,000. So, if you started with $25,000 5 years ago, this strategy could have made $176,000 in total profit, which is a phenomenal
[05:03] return. The average trade duration was about 127 days, which is 4 months. And about 127 days, which is 4 months. And the average winning trade made $2,56 the average winning trade made $2,56 and average losing trade lost $3,348.
[05:17] If you look at the profit and loss chart, you can see it had like a very smooth ride for the most part with a couple of bumps in between. And if you look at the monthly chart on the right for the last five years, it only had
[05:31] three losing months which is phenomenal. And the only losing months was in 2022 which was a bare market. The market kept going down all year uh throughout the 2022 and that is where it lost these trades. During that period it had a
[05:47] total draw down of $18,000. If you would have bought 100 shares of QQQ 5 years have bought 100 shares of QQQ 5 years ago, you would have had a $15,000 draw down in 2022. So, with this strategy, which is completely outperforming buy
[06:02] which is completely outperforming buy and hold QQQ, $15,000 draw down is Robin Hood and make an actual trade using this strategy. So, I just go to Robin Hood and search for my stock picker, which is Triple Q, and then go
[06:16] to trade QQQ options. And then I'm going to select an expiry date which is one year out. So right now we are in June 2025. So I'm going to pick an expiry date which is June 2026. And so there we have it June 18, 2026
[06:34] which is 369 days away. Right now the stock is trading at $527 and it's down 1.25% in a day. And any strikes which are near the current price are called at the money options. And any call options
[06:50] which are above the current price are called out of the money options. And any strikes which are below the current price are called in the money call options. At the money options are usually around 50 to 60 delta. So I can
[07:04] usually around 50 to 60 delta. So I can find my 50 my 60 delta call somewhere under the current price. If I click on the option which is right below the current option, I can see that it has a 62 delta. Now you're not necessarily
[07:18] going to find exactly 60 delta but we have to find somewhere in the ballpark. So if it is 60 delta it you want it to be slightly over 60. In this case I can go with this 62 delta call which is which looks like a non-standard strike.
[07:35] which looks like a non-standard strike. But if I go to uh 520 strike this is 63 delta. So this looks like a good option for me. And I'm going to click on this plus button and then continue and then se enter my quantity and then review
[07:49] order and submit. If you're buying a long-term option, it can usually have a wide bid and ask spread. So you can see here that the bid for this is 58 and the ask for it is 68. So there is a 10point difference in the bid and ask. That
[08:04] means $1,000. So for that reason it is very important that you enter the correct mid price to get the best fill rate. So in this case Robin Hood is rate. So in this case Robin Hood is recommending me to go with 63.5 mid
[08:18] price. So I'm going to enter slightly under uh and see if that fails. If it does not fills then I can increase my bid to 63.5. So I'm going to enter 63.2 bid to 63.5. So I'm going to enter 63.2 here and submit my order. And now it
[08:33] says that it will cost me $6,320 for the right to buy 100 shares of QQQ for the right to buy 100 shares of QQQ at 520 price by June 18, 2026. So it looks good and I'm going to submit my order. And now my order is in process.
[08:49] Now since I'm making this video when market is closed, it is not going to get filled right away. But I can complete my order when the market opens the next day. Another thing that you can do here is you can click this link that says add
[09:02] to watch list. So if you add it to watch list, you will be able to see how this option moves in time and you can also see its chart. So I can go here on my see its chart. So I can go here on my options watch list and I see QQQ 520
[09:15] call and you can see that if I look at its price movement over the last 1 month. A few weeks ago this was trading at around 53.6 six and from there it went to a high of 67. So you can see that within just a couple of weeks these
[09:31] options can move a lot and can potentially make thousands of dollars of profit in just a few weeks or months. And if I look at the longer time frame you can see just 2 months ago back in April this was trading at 17.46
[09:45] uh on April 4th and from there it went to a high of 66.5 in just two months. So that was a big move. If you entered this trade uh at some point uh in April, a trade like this would have made profit in just a
[10:00] couple of weeks. After my trade is executed, I'm going to immediately set a closing order with 50% profit target uh with GTC expiry so that whenever it hits my 50% profit target, it's going to
[10:14] close automatically without me having to do anything. And I'm not going to be using any stop-loss for this trade. uh it is set and forget from here on. I don't have to worry about whether the market goes up or down because I know
[10:27] statistically that over the next couple of months this trade is going to hit my profit target. Just like any trading strategy, this strategy also have certain risk and it's very important to understand how to manage them. If QQQ
[10:41] drops sharply without hitting our profit target and it does not recovers for 12 months, then this trade can go to zero. When you buy a call option, if the stock price is below your strike price by the expiry date, then that option goes to
[10:56] zero. But we typically don't wait till expiry for this to make profit. Which is expiry for this to make profit. Which is why as soon as it hits 50% profit, I'm going to take profit on this trade because even if the market goes up a
[11:09] and then it comes back down, by that time I'm going to be already out with profit off my trade. And next time when the market comes down, I'm going to enter a new trade. So you only want to invest what you are willing to lose
[11:23] because theoretically any trade can go to zero. This strategy is based on dollar cost average because we are opening new trades almost every month. we are going to dollar cost average
[11:36] regardless of where the market goes. If the market goes down, then this strategy will average down and we are going to be able to buy these call leaps at a lower price. When the market goes up, our trade is going to hit our profit target
[11:49] and we are going to lock in profits and put those profits into our cash reserve which we can then use to buy the dip next time when there is a sharp drop in the market. You also want to make sure that you derisk yourself in case there
[12:04] is a big market crash due to a black swan event or a macro event. If that happens, then it is a good idea to close all positions and resume the campaign when it is safe to do so. You have to align with the general market trend and
[12:19] be mindful of the major macro events which can result into a prolonged bare which can result into a prolonged bare market for example a recession or like in 2022 there was a rake height cycle due to which the market kept going down
[12:34] all year long. So if you understood that the Fed is increasing rates and due to that the market is going to see a significant correction in that case it is a good idea to step out of the way and hold on to your cash and wait for a
[12:46] better buying opportunity. If you like this video, check out my next video in the description below, which is also going to be a highly profitable, high going to be a highly profitable, high win rate strategy just like