Income Generation: Price is Down 30-40% from 52-week High
11 min
Income Generation: Price is Down 30-40% from 52-week High
- Risk Profile: Aggressive, Speculative & Income Traders
- Trade Strategy: Market sell-off with sideways price action
This income generation strategy focuses on markets that have declined by at least 30% from their 52-week high and have remained within a trading range for the past 60 days. Although the main trend is still downward (as the price is below the 200-day moving average), the recent sideways stabilization suggests a potential bottom formation. Given this context, a sound income strategy involves selling put spreads below the market until price action indicates otherwise.
Price is Down 30-40% from 52-week High
Option Strategies/Bot Group: Income Generation – 30-40% Down from 52Week High
income generation
Bots
bottrading
Navigate to "Bot Trading" or click on "Search Bots" from the drop-down menu.
Bots
In this case, we have two bots under the “Income Generation – 30-40% Down from 52Week High” bot strategy:
Income Generation – 30-40% Down from 52Week High” bot strategy
Bot Workflow
Price is Down 30-40% from 52-week High
Bot Rules: Trading Strategies
- Time
- Create a schedule for the bot to run daily, weekly, or monthly.
- Equity:
- Income Generation – 30-40% Down from 52Week High”
- Price Below 200 MA
- Price 30%-40% Below 52-Week High
- Price > $10
- Open Position:
- Example: Execute a Sell Put Spread or Bull Put Spread:
- Set DELTA at 40/20 (mid-price bid price).
- Ensure open interest is greater than 50.
- Close Order (OCO):
- Close the position if:
- Profit exceeds 75%.
- Loss exceeds 50%.
- Within 2 days before the expiry.