---
title: Income Generation: Price is Down 30-40% from 52-week High
slug: income-generation-price-is-down-30-40percent-from-52-week-high
createdAt: 2024-06-09T18:29:40.159Z
---

# Income Generation: Price is Down 30-40% from 52-week High



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- **Risk Profile**: Aggressive, Speculative & Income Traders
- **Trade Strategy**: Market sell-off with sideways price action

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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.

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![](https://lh7-us.googleusercontent.com/docsz/AD_4nXdkSkaCkqd87DgdvfONvNOsdorGHzbtkStI04MOSe1c8aUUmgshXOlk7T0PDIvnUwU2mwsMn5m3Q2_diwP3tKIVQFWzXEG0wTqMoBRXa1Emx0awXy0GeLZGfNBK-2PDmUtzvyfq0rGcKrwizzNCwIEOzsFrmF6iSJK7HG4D4g5wIDugYUNTMdE?key=NWs5NT8S_eWMqWbZHYSaPw "Price is Down 30-40% from 52-week High")

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## Option Strategies/Bot Group: Income Generation – 30-40% Down from 52Week High

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![income generation](https://lh7-us.googleusercontent.com/docsz/AD_4nXciUQvgnPTSeuJOHZbFayylDi9aVwF9jOg6iA1BR9cldthzNd3lXAC3I78x_SM0l0sbAyXs89xptnA-1IqrrLjbtl7Pl2h-wjv3B0xc0w95saGS4fEpYnsMhoCeS1C5IoILYcd-dQ5XsL8XVA5B9AD9OoanFLDJ-tdGjnTQ52w43IWeKGQUShk?key=NWs5NT8S_eWMqWbZHYSaPw "income generation")

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![bottrading](https://api.archbee.com/api/optimize/t8kDfoa1USMGNZzQ2ltKT/BSb7dDZSt_p_m-L4pXyLM_screenshot-2024-06-09-at-14439-pm.png "bottrading")

Navigate to "Bot Trading" or click on "Search Bots" from the drop-down menu.

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### Bots

In this case, we have two bots under the “Income Generation – 30-40% Down from 52Week High” bot strategy: 

1. **Income Generation Sell Put Spread (40/20)- **[link](https://www.optioncircle.com/bot/IG-40PerDn52Week-P) 
2. **Income Generation - Long Call 50/30/10 Butterfly - **[link](https://www.optioncircle.com/bot/IG-40Percdown52Wk) 

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![](https://lh7-us.googleusercontent.com/docsz/AD_4nXcB4TcfXixt6TD_88BNy0apszbmzsV0vzoIub7WBscS4EO063oXL_TTxg8C5EBl9hff0aba0Frknza9A9TxdgORgTPdJ4DCDgO4_s7v0I77l6rka6ddZZ7gs-MtkgroOEHo68UFUPVVA5ck5LUrAg8zBltJO7yPlchX2jDaEpur24AGMOkQRg?key=NWs5NT8S_eWMqWbZHYSaPw "Income Generation – 30-40% Down from 52Week High” bot strategy")

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### Bot Workflow

![Price is Down 30-40% from 52-week High](https://lh7-us.googleusercontent.com/docsz/AD_4nXfYWMUBMkWV8uL2zrFZQ6cCpwD3bCOCFdvYWrvO27ydbd7XTEwBSN-nZTWLc5Q9LGhr6K9Z5YrknzzOnZw0oe-aQwJNbISH2SQE213zGjbByR4F2dmZHwDybI-4DUz_6FEQrxEy_ffQ1XKccZdr4xjwLF4V6ai89GTLvrngPb5y9xGYgN7f8Q?key=NWs5NT8S_eWMqWbZHYSaPw "Price is Down 30-40% from 52-week High")

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### 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.

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