Learning about Casino Slot Machines Can Make You Money

Of all the ways to gamble in a casino, the humble Slot Machine is the #1 money maker for a casino.  Slot machines typically pay out about 98% of all the money they take in to pay the “winners.”  A slot machine’s job is to redistribute wealth AND to keep a profit of 2% of the money they take in for casino profits.  Each time the slot machine has a winner, the bells, lights, and whistles go off!  But every time the slot keeps the customer’s money – just silence!

One of the “secrets” known by the locals who live in Las Vegas is that some of the machines payout more than others.  A machine that pays out 98% of money taken in actually pays out 50% MORE than a 97%-payout machine.  That little “1%” extra pays out 50% more; if you knew where they were, you would have a much better chance of winning.  Next time you go to Vegas, just ask a local; most of them know where the higher payouts are.

In Time-Farming, we sell options with a 95% chance or more of expiring worthless (with a few exceptions), which means we keep the money (call the “premium”, the options price) we collect for selling it.  As it expires worthless, or becomes worth much less, the trade we make becomes profitable.  Like the slot machine, our trade has a very high probability of winning.  In most places it is either very expensive or just illegal to own a slot machine.

There is a very strong drive in the human DNA makeup that enjoys hope, and that enjoys taking a risk.  Well, in investing, hope is not a strategy and avoiding risk is desirable.  This is why it is better to own the slot machine than it is to be a player.

If you “own the slot machine”, these things are true:

  • You make money while you sleep.
  • You know over the long run, you will always make a profit.
  • You don’t have to spend all day watching the machine make you money, it just keeps going and going like the Energizer bunny.

You can be a gambler or an owner.

While I wouldn’t call owning a gang of slot machines fun, I can’t deny that I would enjoy it very, very much.

There are two ways, you can make money from selling commodity options:

  1. If you have enough money ($250k to $1 million+  you simply pay a professional a part of your profit to do it for you.
  2. Or you are a small or medium sized investor, invest in yourself by using a few hours of  time to learn how to do it for yourself.

Another great thing about Time-Farming is that it is non-correlated to the stock market, which means it can be a great way to diversify.

Read more about how selling commodity options very far out-of-the-money is not trying to guess where prices go, but merely determining where they won’t go – a much easier task.

Here’s a link with more information about my recent book on how it all works:


 Thank you.

The commentary and examples are for teaching purposes only and are not intended to be a trading or trade advisory service. Any investments, trades, and/or speculations made in light of  the ideas, opinions, and/or forecasts, expressed or implied herein on the web site and/or newsletter, are committed at your own risk, financial or otherwise. Trading with leverage could lead to greater loss than your initial deposit. Trade at your own risk.   Investors and traders are responsible for their own investment/trading decisions including entries, exits, position, sizing and  use of stops or lack thereof.  This is not a trade advisory service and is for educational purposes only.

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