Downside Protection (DSP): This represent the percentage a stock would have
to fall before the option position would result in a loss.

This is best applied to Naked Puts.  When applied to Covered Calls the DSP will
equal to the Return On Investment (ROI).

Example: Sell a naked put with the highest DSP possible. Combine this with
a low Probability of Assignment and the likelihood that the option will expire
expire worthless is higher. This means you keep the money for selling the contract.

Out of The Money (OTM): This represent how far away the option strike price is
away from the stock price.  When selling naked puts for income you want to sell
puts as far OTM as possible.  The goal is for the put option to expire worthless
and you keep the money.

Example - Naked Put: A put has 10 days until expiration. It has a return on
investment (ROI) of 3%. The OTM is 15% combine this with a low probability of
assignment and the likelihood the option will expire worthless and you keep the money.

Example - Covered Call: You want to sell a call on an existing stock position to
earn premium and you do not want the stock to get called away. Find the options
that are further OTM with a good ROI.

Return on Investment (ROI):  This tells you the return on investment for selling a naked put or covered call. The calculation is based on the last stock price and the option bid price.  For an option to make it into the MTRIG search engine it must have at least 1/2% ROI.

Downside Protection (DSP): This represent the percentage a stock would have
to fall before the option position would result in a loss.

This is best applied to Naked Puts.  When applied to Covered Calls the DSP will
equal to the Return On Investment (ROI).

Example: Sell a naked put with the highest DSP possible. Combine this with
a low Probability of Assignment and the likelihood that the option will expire
expire worthless is higher. This means you keep the money for selling the contract.

Out of The Money (OTM): This represent how far away the option strike price is
away from the stock price.  When selling naked puts for income you want to sell
puts as far OTM as possible.  The goal is for the put option to expire worthless
and you keep the money.

Example - Naked Put: A put has 10 days until expiration. It has a return on
investment (ROI) of 3%. The OTM is 15% combine this with a low probability of
assignment and the likelihood the option will expire worthless and you keep the money.

Example - Covered Call: You want to sell a call on an existing stock position to
earn premium and you do not want the stock to get called away. Find the options
that are further OTM with a good ROI.

Return on Investment (ROI):  This tells you the return on investment for selling a naked put or covered call. The calculation is based on the last stock price and the option bid price.  For an option to make it into the MTRIG search engine it must have at least 1/2% ROI.