1. Generating Income from a Falling Market
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2. The Math of the Engine (Risk, Reward, and ROI)
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3. The Greeks of the Income Engine
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4. Professional Management & The 50% Rule
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5. Course Graduation & Your Income Roadmap
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Delta measures your sensitivity to the stock price. Since this is a “Bear” Call Spread, we have a Negative Delta.
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SPY Result: -0.0397 (-0.218-0.179).
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What it means: For every $1.00 SPY drops, your spread becomes more profitable by $3.97.
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The Goal: We want the stock to stay below $700. If it does, the Delta eventually shrinks to zero, and we keep 100% of the profit.