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Most traders are constantly searching for an edge — a repeatable setup that works regardless of market conditions. They want something mechanical, consistent and proven.
Well, I’ve got something that fits that description perfectly. And the numbers behind it are pretty remarkable.
I’m talking about an ITM (in-the-money) debit spread strategy on the S&P 500 (SPY) that I execute every Thursday at 3:45 p.m. ET. It’s designed as an income position — non-directional — where you’re betting that SPY is either going to go higher, flat or even slightly lower, and you should still make your money.
This is what I call a stacking trade because you can layer these positions week after week, creating multiple payday opportunities. The concept is simple, but the execution matters.
The Setup and Structure
Here’s exactly how it works: I place a trade on SPY with 60 days till expiration, or as close to 60 as possible. The structure is straightforward — I’m buying a 75-delta call option and selling a 70-delta call option.
That creates a net debit, typically around $8. What makes this approach so defensive is how the spread behaves into expiration. As long as SPY finishes above my short strike — even if the index dips modestly, stays flat or drifts slightly higher — the trade can still deliver a full profit.
I’m not relying on a bold directional prediction. I’m positioning myself in a way that allows a wide range of outcomes to still work in your favor.
The profit target is a quick 10% gain, and there’s a built-in 35% stop loss for risk management. At first glance, risking about $300 to make $100 might seem upside down, but the math changes when you consider the probabilities.
You only need to win around 75% of the time to be profitable — and this setup historically clears that bar comfortably with an 88% win rate.
The Real Edge: Time and Consistency
One of the biggest advantages of this approach is the hold time. Even though you open the trade with roughly 60 days till expiration, it rarely takes that long to reach the target. On average, the position hits the 10% profit mark in about 14 days. That quick turnaround means you’re not sitting in the market for extended periods, and it allows you to stack more opportunities throughout the year.
Another key strength is consistency. This strategy has been tested across 12 years of market conditions — bull runs, sell-offs, volatility spikes and sideways stretches.
Across all of those environments, it maintained that 88% win rate and produced an average 6% return per trade. When you combine a defensive structure, short average hold time and a long track record of high probability outcomes, you end up with a strategy that doesn’t rely on prediction, just disciplined execution.
If you’re looking for an approach that lets you generate income with well-defined risk and a wide margin for error, this is one worth exploring. It’s a clean setup with a proven history, and when you follow the mechanics, the probabilities do the heavy lifting.
Graham Lindman
Graham Lindman 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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