There has been a lot written on selling options to generate income and trade in a high probability fashion. However, there has never been an approach that adequately addresses the risks of selling nor approached it quantitatively like this. The Ultima Income Generator is unlike anything you’ve ever studied on the subject!
The Ultima strategy was developed by Don Kaufman, co-founder of TheoTrade, and incorporates his experience as a floor trader and head of TD Ameritrade Education. His trading experience on the floor and his time at TD, analyzing billions of trades, has placed him in the unique position to guide premium sellers in the current market environment.
Ultima Not Ultimate
What’s in a name? I mentioned that this is a quantitative approach, and the name is only the beginning. For those familiar with second and third derivative Greeks, you may have heard of the option Greek “Ultima.”
While Vomma is the second derivative option Greek that measures the sensitivity of Vega to changes in implied volatility. Ultima is the third derivative option Greek that measures the sensitivity of Vomma to changes in implied volatility. I know that probably makes you a little uncomfortable and may cause you to hesitate reading further, but this is just the origin story.
While Ultima doesn’t mean ultimate, the optimization of the option Greeks for price, time and volatility and hedging considerations may cause you to consider this strategy as the “ultimate” approach to selling premium. There are basic considerations for all of these terms, but the underlying strategy is easily applied with a system of rules for entry and exit.
This is Just the Beginning
This is only the first in many posts in the coming week that will outline the Ultima Income Generator. While this doesn’t represent a comprehensive guide to applying the strategy, our members have access to our Ultima class, hedging classes, monthly Q&A session and Don’s daily commentary that allows them to apply it successfully every day.
Want to learn more about Ultima right now? Watch Don's preview outlining the strategy.
See how unlocking the Vomma Zone can help you better understand when volatility is about to rise.
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