Wednesday, March 11, 2026

A Handy Strategy for Steady Profits

Trading With Larry Benedict
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Managing Editor’s Note: Is Jeff flip-flopping on Nvidia?

Our colleague Jeff Brown recommended Nvidia as far back as 2016. But now he believes Nvidia will trigger a massive crash next week. If he’s right, hundreds of popular stocks could free-fall.

That’s why tomorrow, March 12, at 2 p.m. ET, he’s sharing which types of stock are at the highest risk. Plus, he’ll unveil a solution unlike anything he’s revealed before…

If you’d like to tune in to his briefing – and get the name of one of his bullish and bearish picks – then RSVP with one click right here.

A Handy Strategy for Steady Profits

By Larry Benedict, editor, Trading With Larry Benedict

Most people trade the market using direction.

If they believe a stock will rally, they buy shares or a call option. If they think the stock’s going to fall, they short shares or buy a put option.

But my strategy is a little different at The S&P Trader

I look for a level where the S&P 500 (SPX) is unlikely to trade that day. And then we use an option strategy called a spread to earn a premium. If S&P closes without reaching that level, then that premium remains ours to keep.

Last month, we looked at some trades we did using a bull put spread. Today, I want to show how we profited with a variation called a bear call spread…

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Jeff Brown's New Nvidia Warning Will Shock You

Jeff accurately predicted the Covid crash in 2020. He protected his readers from some of the biggest crashes in the 2022 tech wreck. And late last year, he warned about a popular AI stock – right before it fell 34% in three months. But now, he believes an upcoming Nvidia announcement is about to trigger a massive culling in the market… With some stocks soaring to new heights, and others falling all the way to the bottom. In fact, he believes it's a "sure thing." He's sharing the details tomorrow, Thursday, March 12, at 2 p.m. ET – including a bullish pick and a bearish pick. Click here to register with a single click >>>
(When you click the link, your email address will automatically be added to Jeff’s guest list.)


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Is A 37% Crash Coming?

The CEOs of Morgan Stanley and Goldman Sachs are warning of a "major correction" ahead… But the last time stocks crashed 37%, hedge fund legend Larry Benedict made $95 million. His secret? He doesn’t buy stocks. He “skims” them. His "Skim Code" strategy can target payouts of $6,361 in a single week… while ordinary investors lose money. And now he's revealing the whole thing, so you can go for gains whether the market goes UP, DOWN, or sideways. [Get His Crash-Proof Strategy Here]


Profiting in a Choppy Market

Our bear call spread strategy involves selling a call option above the current SPX price. We choose a level we don’t anticipate the index reaching before the option’s expiration.

We simultaneously buy a call option above that sold call. This limits our losses if SPX rallies unexpectedly.

Overall, the spread generates a credit. Since the call option we buy is further away than the index’s current level, it’s cheaper than the option we sell. The option we sell essentially pays for the option we buy.

Crucially, we only place a bear call spread if we are neutral to bearish on the S&P 500. We don’t expect the market to rise to our call option levels.

And in The S&P Trader, we typically use this strategy with a same-day expiration, so we know our profit or loss by the time the market closes at 4 p.m. ET.

So let’s see how a trade we did last week panned out…

Tune in to Trading With Larry Live

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Each week, Market Wizard Larry Benedict goes live to share his thoughts on what’s impacting the markets. Whether you’re a novice or expert trader, you won’t want to miss Larry’s insights and analysis. Even better, it’s free to watch.

Simply visit us on YouTube at 8:30 a.m. ET, Monday through Thursday, to catch the latest.

A Same-Day Profit

On Tuesday, March 3, SPX opened at 6800. But with the war in the Middle East and the oil price starting to rise, SPX didn’t seem to have much energy for an upward move.

To profit, I recommended a 6840/6855 bear call spread. In other words, we sold a 6840 call option while simultaneously buying a 6855 call option. Opening the trade generated a $1.50 credit per contract (or $150 since an option contract is for 100 shares).

Check out the chart…

S&P 500 (SPX)

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Source: e-Signal

(Click here to expand image)

If SPX closed at or below 6840, that $1.50 premium would remain ours to keep.

If we were wrong and SPX rallied above 6840, our trade would turn into a bigger loss the higher the index went. However, the bought 6855 call option leg capped our potential losses.

In this case, the most we could have lost was the difference between the two strikes (6840 and 6855) minus the premium we received for placing the trade. That’s $15 minus $1.50, which equals $13.50 (or $1,350 per contract).

At first glance, this risk-reward balance might seem out of whack. However, our win rate makes all the difference.

We have won on 80% of the 1,000+ trades I’ve recommended since I launched The S&P Trader. Because our winners far exceed our losers, we can turn out impressive profits using this strategy.

In this trade, SPX briefly touched 6840 at the high of the day. But my analysis proved correct, and SPX closed out the day at 6816. The premium was ours to keep.

Bear call spread trades are always a balancing act. The closer to the current price level you sell your call option, the more premium you receive. But there’s a higher chance of the trade moving against you.

On the other hand, if you choose a level that’s too far away, you might not earn enough premium to make the trade worth it.

Over my 40+ years of using this strategy, I’ve honed my ability to find the sweet spot, enabling us to rack up our 80% win rate. And we’re currently sitting on 13 straight wins for the year.

Rest assured, I’m looking forward to banking even bigger gains throughout the rest of 2026 for my members.

Happy Trading,

Larry Benedict
Editor, Trading With Larry Benedict

Free Trading Resources

Have you checked out Larry’s free trading resources on his website? It contains a full trading glossary to help kickstart your trading career – at zero cost to you. Just click here to check it out.

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