The Best Options Strategies for Traders Who Hate Losing Money

by Chris Pulver | Mar 5, 2025

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Options trading is a game of probabilities. If you’re trading blind, hoping for a directional move, you’re stacking the odds against yourself.

But if you know how to structure trades with defined risk and built-in edge, you can profit even when the market throws a curveball.

The best strategies for traders who hate losing money?

Selling premium, using broken wing butterflies, and positioning for high-probability outcomes. These approaches allow you to collect income, reduce risk and even capitalize on the market’s uncertainty.

Sell Premium and Let Time Work for You

Most traders buy options hoping for a quick move in their favor. The problem? Time decay eats away at those contracts, and if the move doesn’t come fast enough, they lose.

Selling premium flips that dynamic — you profit from the passage of time, not just market direction.

One of my go-to strategies in volatile markets is selling credit spreads. A properly structured credit spread takes advantage of high implied volatility, collects premium upfront and has a defined risk. If the market moves against you, your loss is capped.

But if the trade works, you pocket the full credit as time decay works in your favor.

When the market gets really wild, I look for opportunities to sell premium when the VIX spikes above 20. Historically, when the VIX jumps, options prices become inflated, and selling premium becomes even more attractive.

Profit From Market Moves Without Picking Direction

Another strategy I use regularly is the broken wing butterfly. It’s a great way to structure a trade where you collect a credit upfront, give yourself a profit zone and still have a manageable risk.

Here’s how it works…

Instead of a traditional butterfly spread, where your risk is balanced on both sides, a broken wing butterfly widens one of the spreads. This allows you to take in a net credit and have a defined area where the trade makes money.

For example, if I expect the market to chop around but not take off in one direction, I might set up a broken wing butterfly where I sell a call spread slightly out of the money and use that premium to finance a call spread closer to the current price.

If the market moves into my profit zone, I collect a nice bonus. If it doesn’t, I still keep my initial credit as long as price doesn’t blow through my risk threshold.

The key is positioning.

I use technical analysis to find strong support and resistance zones, then structure my trades around those levels. This allows me to put the probabilities in my favor, reduce my overall market exposure and still generate consistent returns.

Trade Example: How to Structure a Broken Wing Butterfly for High-Probability Gains

Let’s walk through a real trade example using a broken wing butterfly on the S&P 500 (SPX). This setup takes in a credit, offers a potential profit zone and limits risk.

Trade Setup: Broken Wing Butterfly on SPX

SPX current price: 5,800
Expected move: Choppy action, no major breakout
Expiration: 3-5 days out
Trade structure: Buy one call, sell two calls, buy one farther out call

Here’s how I’d structure the trade:

Buy one SPX 5,870 call
Sell two SPX 5,875 calls
Buy one SPX 5,895 call
Net credit received: 0.35 per contract (35 per spread)

This creates a broken wing butterfly, where I take in a net credit upfront and have a profit zone between 5,870 and 5,875. If SPX finishes below 5,870, I keep the full 35 credit. If SPX pins at 5,875, I capture the maximum profit from the butterfly, which would be around 500 per contract.

Risk and Reward Breakdown

Maximum profit: If SPX lands at 5,875, the trade makes 535 (500 from the butterfly plus the 35 credit).
Maximum loss: If SPX closes above 5,890, I take a loss of 1,465 per contract.
Breakeven point: At expiration, I start taking on risk if SPX trades above 5,880.

Why This Trade Works

High probability of success — As long as SPX stays below 5,870, I keep the initial credit.
Low capital requirement — Since this trade collects a credit, there’s no significant cost upfront.
Defined risk — Unlike naked options, the downside is limited and manageable.

This is a great way to generate consistent returns without needing the market to make a huge move in your favor. If the trade doesn’t hit the profit trap, I still keep the credit and move on to the next opportunity.

Trade Smart, Not Desperate

Options trading doesn’t have to be about chasing big gains with high-risk bets. The best traders focus on consistency, not home runs. By selling premium, using broken wing butterflies and structuring trades around high-probability setups, you can stack the odds in your favor and make money without needing the market to move perfectly in your direction.

If you hate losing money, stop fighting the market. Trade smart, structure your positions wisely and let probabilities do the heavy lifting.

I’ll see you in the markets.

Chris Pulver
Chris Pulver Trading

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*This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk.

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