The Core Strategy Explained: This method looks for price bands that repeat each week. When price hits the top of the band traders sell. When it falls to the bottom they buy. The weekly chart shows clear levels. The idea is that price tends to return to the middle of the band over time. In a bear market the bands are tighter. The strategy works well with options because you can sell premium when the band is reached. By using weekly expirations you can keep exposure short and limit risk. (2/5)

Your Trading How To Guide
1. Identify the current weekly range on the underlying index. Use the high and low of the past ten days as your band edges.
2. Choose an options strike that sits near the edge of the band. Sell a put or call depending on market direction.
3. Set a target profit equal to half the band width. Close the trade when the price reaches that level.
4. Place a stop loss just beyond the opposite edge of the band. This caps loss if the market breaks out. (3/5)