Dual Edge Research publishes two powerful newsletters that work great individually — and even better together. The Bull Strangle Newsletter focuses on stocks and options, combining stock ownership with premium-selling strategies to generate consistent income and market-beating returns. The Smart Spreads Newsletter specializes in seasonal commodity futures spreads, offering a diversified approach with low correlation to equities. Together, they deliver a complete investment perspective — one focused on income, the other on diversification — all under one simple subscription.
Introduction
One of the biggest misconceptions about the Bull Strangle Strategy is that once the options are sold, the hard work is finished. In reality, the research process never stops. Every Monday brings a new watch list, new research, and a new opportunity to evaluate how best to use your investment capital. While the strategy is intentionally designed to minimize emotional trading and unnecessary adjustments, successful investing still requires disciplined portfolio management. The objective is not to react to every market fluctuation, but to continually ensure that your capital remains invested in the strongest opportunities available.
Every Position Must Earn Its Place
Perhaps the most important shift in thinking is this: existing positions should not receive special treatment simply because they are already in the portfolio. Every week, the Bull Strangle research identifies approximately twenty of the highest-probability opportunities from more than five thousand publicly traded stocks. Those stocks have earned their place on the watch list through objective research. Existing holdings should be evaluated using those same standards. Rather than asking, "Is there a reason to sell this stock?" the better question becomes, "Does this stock still deserve a place in my portfolio?" That simple change in perspective transforms portfolio management from a defensive exercise into an ongoing process of capital allocation.
Comparing Existing Holdings with New Opportunities
Earnings announcements remain an important consideration, but they are no longer the only factor. Each stock that remains in the portfolio should be evaluated alongside the current watch list. Has its Bull Strangle Rating changed? Has another stock within the same sector earned an Elite or Core rating while the existing position has fallen to Secondary or Opportunistic? Is the current holding still one of the strongest opportunities available? If not, capital may be better deployed into a stronger candidate. The portfolio has room for only a limited number of positions, and every stock should continue earning its place through objective research rather than historical ownership.
Managing Positions After Option Expiration
Option expiration naturally creates several different outcomes, but none of them automatically determines what happens next. Stocks called away simply free capital for new opportunities. Stocks that finish between the call and put strikes are still evaluated alongside the current watch list. Stocks that close below the put strike require one additional step. Assignment results in the purchase of a second block of shares, temporarily doubling the position size. Even if the stock continues to deserve a place in the portfolio, maintaining twice the intended allocation introduces unnecessary concentration risk. For that reason, the assigned shares purchased through the put are sold, returning the position to its original size before the next option cycle begins. This maintains disciplined position sizing while allowing the strategy to continue on the stocks that still represent attractive opportunities.
Using the Expired Options Page
The newsletter's new Expired Options page was developed specifically to support this process. Rather than simply identifying stocks whose options have expired, it provides the information needed to evaluate whether each position deserves to remain in the portfolio. Current Bull Strangle Ratings immediately identify how each stock compares with today's research, while upcoming earnings announcements highlight positions that may require additional attention before the next option cycle begins. Existing holdings are no longer viewed in isolation; they compete directly with every new opportunity identified through the weekly research process.
Managing Capital, Not Trades
Managing a Bull Strangle portfolio is ultimately about managing capital, not individual trades. Some positions will remain in the portfolio for multiple option cycles, while others will be replaced by stronger opportunities as market conditions change. The objective is not to maximize the return from any single stock. It is to continually allocate capital to the highest-quality opportunities identified by objective research. Every Monday becomes a fresh decision. Every position must earn its place again. Over time, that disciplined approach allows the portfolio to evolve alongside the research, helping ensure that the strategy's historical edge is consistently applied where it has the greatest potential to succeed.
In the next article, we'll bring together all the steps of the Bull Strangle process, demonstrating how the individual decisions discussed throughout this series combine into a complete, disciplined investment methodology.
Want to build a more complete trading toolkit?
The Bull Strangle Newsletter focuses on stocks and options, combining stock ownership with disciplined option-selling techniques designed to generate consistent income while managing risk.
The Smart Spreads Newsletter focuses on seasonal commodity spreads, a historically proven approach that seeks opportunities across agricultural, energy, metal, and financial futures markets.
Each strategy is designed to stand on its own, but together they provide a diversified approach that can perform across a wide range of market environments. For traders looking to deepen their education, The Bull Strangle Strategy and Trading Commodity Spreads are both available on Amazon.
Visit BullStrangle.com to subscribe for just $1 for the first month.
For a video overview of the Bull Strangle Newsletter
For a video overview of the Smart Spreads Newsletter
Darren Carlat
Dual Edge Research
(214) 636-3133
DualEdgeResearch@gmail.com
Disclaimer
This information is for informational purposes only and should not be considered as investment advice. Past performance is not indicative of future results, and all investments carry inherent risk. Consult with a financial advisor before making any investment decisions.