My Favorite New Precision Trading Strategy and How It Works Hey traders!
The market’s closed today in honor of President Jimmy Carter’s passing, so we figured it would be a great time to discuss my brand-new trading strategy…
Warped Options.
I know, I know…
I’ve pooh-poohed spread trading in the past, but the numbers don’t lie. The team took 100 real, live trades I placed last year, which had a 69% win rate, pushing a $10k starting stake to better than $63k.
Pretty darn good if I do say so myself!
But Publisher Nate Tucci — a darn good trader in his own right who many of you may know already — applied a new set of rules to those trades, and that win rate jumped from 69% to 85%.
And that $63k? It turned into over $100k.
You can probably see why that caught my attention and why I’m finally changing my tune…
So, about my brand-new strategy…
Warped Options is designed for short-term spread trades, offering a structured approach that focuses on probability, precision and speed.
By leveraging specific criteria and simple spread setups, this strategy gives traders the tools to efficiently capitalize on market opportunities. Key Features of Warped Options Warped Options specializes in short-term trades, often targeting weekly expirations. These trades are designed to be held for short durations — either as day or overnight swing trades — to reduce market exposure while capturing quick moves.
The strategy avoids the unnecessary risk of long-term or far out-of-the-money options, instead focusing on in- or near-the-money opportunities, where the chances of success are maximized.
The strategy incorporates a specific set of criteria to filter for the most actionable trades, including:
1. Above-the-ask volume, signaling aggressive buying or selling activity.
2. Volume greater than open interest, indicating heightened participation in a particular contract.
3. Multiple bullish or bearish orders on the same stock hitting my scanners, reinforcing the potential for a significant move.
Confirmation from 5-minute and daily charts further ensures that the technical setup aligns with the options flow, reducing the likelihood of entering crap trades. The Types of Spread Trades Used At the core of Warped Options is its focus on simple spread trades, specifically credit and debit spreads, which are designed to take advantage of specific market conditions. - Credit Spreads: These involve selling a higher-premium option while buying a lower-premium option to reduce risk. For example, in a bearish scenario, the strategy might use a bear call spread, where a higher strike call is sold, and a lower strike call is purchased. In a bullish setup, a bull put spread could be employed by selling a put at a higher strike and buying a put at a lower strike. Credit spreads generate income upfront and rely on the options expiring worthless.
They’re also very simple to put on, and I’ll walk everyone through exactly how to do it in our upcoming Masterclass sessions. - Debit Spreads: These are used when expecting a directional move, where you pay a net debit to enter the trade. For instance, in a bullish scenario, the strategy might use a bull call spread by buying a call option at a lower strike and selling one at a higher strike. Similarly, a bear put spread could be used for bearish trades. Debit spreads cap both risk and reward, making them ideal for defined-risk scenarios.
These spread trades offer several advantages, including defined risk, reduced capital requirements, and the ability to profit in various market conditions — whether the expectation is for a small, moderate or significant price move. The Role of Automation and Discipline Warped Options also simplifies the trading process by automating the selection of trades based on its defined criteria. This approach eliminates much of the guesswork, enabling traders to focus on high-probability setups without being bogged down by market noise.
Automation also ensures consistency, allowing traders to execute the strategy with discipline and precision.
By combining a clear framework with flexible trade setups like credit and debit spreads, Warped Options provides a balanced approach to options trading that every trader needs in their toolkit.
The strategy emphasizes calculated risk-taking, making it accessible to both new and experienced traders.
Warped Options isn’t just a trading system — it’s a streamlined methodology designed to help traders identify and capitalize on high-quality opportunities in the dynamic world of options trading.
If you want more information, just check this out!
Lance Ippolito
Lance Ippolito Trading
Lance is a professional trader and successful entrepreneur with over 10 years of experience in the financial markets
Lance doesn’t want the CCP spying on him, so you’ll never find him on TikTok. Same goes for other social media sites, which are filled with impersonators and scammers.
P.S. Be sure to join my Telegram channel here for frequent market updates, commentary, live event notifications, trade alerts and all sorts of goodies. You can only find him on his personal YouTube Channel — smash that Subscribe button! https://www.youtube.com/@LanceIppolito
Note: No one from The TradingPub team or Lance Ippolito Trading will ever contact you directly on Telegram. *This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk. Disclaimer:
The material in this document is for informational purposes based on our proprietary research. It is not an offering, specific recommendation, or a solicitation of an offer to buy or sell any securities mentioned or discussed herein.
Any performance results discussed herein represent past performance, are not a guarantee of future performance, and are not indicative of any specific investment.
Due to the timing of information presented, any investment performance reflected within this document may be adjusted after the publication and distribution of this material. There can be no assurance that the future performance of any specific investment, investment strategy, or product made reference to directly or indirectly in this communication will be profitable, be equal to any corresponding indicated historical performance levels or be suitable for your portfolio.
Any investment results set forth in this document are not net of expenses and execution costs, nor do they account for other relevant trading or investment fees. Please visit thetradingpub.com/terms-of-service/ for our full Terms and Conditions. Join the Conversation
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