Tap into Chuck's Trading Knowledge NOW!

Contact Us

Check to guarantee delivery



 

 

Options Spread Strategy 

Profiting in Up, Down or Flat Market

The Option Spread Analysis below displays the profit potential for an actual Nasdaq ETF option spread trade that we currently own.

This analysis reveals the profit potential for our spread trade assuming various price changes for the Nasdaq ETF at option expiration from a 15% increase in price to a 15% decrease in price.

The analysis reveals that if the Nasdaq ETF remains flat or increases in price at option expiration, we will realize a $1,398 profit and a 462.9% return (circled). A 15% decline in the Nasdaq ETF at expiration would result in an 88.3% return.

Learn how to set up option spreads that can profit if the underlying stock/ETF increases in price, remains flat or declines in price.

yyy.jpg

Options Spread Analysis Explained

Call option spreads have a long position and a short position. The long position profits as the underlying stock moves up in price. The short position profits as the underlying stock moves down in price. The short position provides downside protection if the underlying stock declines in price.

The Option Spread Analysis below displays the profit potential for an actual option spread trade that we own for the Utilities ETF.

This analysis reveals the profit potential for the option spread trade assuming various price changes for the Utilities ETF at option expiration from a 7.5% increase in price to a 7.5% decrease in price.

The analysis reveals that if the Utilities ETF remains flat or increases in price at option expiration, we will realize a $316 profit and a 111.3% return. A 5% decline in the Utilities ETF would result in a 114.4% return and a 7.5% decline would result in a 60.1% return.

The video below will show you how to set up these options spread trades that can profit in up, down or flat markets.

Hughes_022317.png 

 

The Advantages of Spreads vs Directional Trades.

When you purchase a stock, the stock must go up in price to profit. A stock spread trade on the other hand can profit if the stock trades up, down or remains flat.

And when you purchase a call option, the underlying stock must close above the strike price of the call option at option expiration or you will incur a 100% loss on your call option investment.

Option spread trades, however, can profit if the underlying stock is up, down or flat at option expiration.

In this video learn how stock and option spread trading can produce steady profits during the current volatile, non-trending type markets. We will also look at money management rules for directional trades that can produce profitable portfolios even if you only win on 1 out of every 8 trades.

Profiting in Up, Down and Flat Market

In this video let’s explore an option spread strategy that can profit if the underlying stock is up, down or flat. Realty Income Symbol O is a REIT. The Option Spread Analysis below displays the profit potential for an actual Realty Income option spread trade that we currently own.

This analysis reveals the profit potential for the spread trade assuming various price changes for Realty Income stock at option expiration from a 10% increase in price to a 10% decrease in price.

The analysis reveals that if Realty Income stock remains flat or increases in price at option expiration, we will realize an $840 profit and a 133.1% return. A 10% decline in Realty Income stock at expiration would still result in a 133.1% return.

Learn how to set up these option spread trades that can profit in up, down or flat markets.

Hughes_081116.png 

 

 

Trade Management  Rules 

This week let’s explore trade management rules for exiting losing trades and rolling over options at expiration.

Once you enter an option trade you can utilize a simple money management rule for exiting losing trades. This rule allows you to hold on to winning trades and cut short your losing trades which is the key to successful option portfolio management.

Cutting losses short is essential to your trading success as it is very difficult to recover from a large loss. If you take a 75% loss on a trade, your next trade requires a gain of 300% for you to just break even!

Chuck uses a simple rule for rolling over options at expiration. Rolling over options allows him to reduce cost basis and risk and allows him to compound returns.

Learn how portfolio management can give you a trading edge even if your trade selection and timing are not very accurate.

 

 

Option Spread Portfolio

This week we will explore both bullish and bearish trade opportunities in 2016.

This video will explain the option spread trade strategy that has allowed Chuck to protect his bullish option trade profits. During the current market sell off, the option spread trades listed below will profit regardless of the severity of the market decline.

Learn a simple trade management technique to lock in profits and succeed in any type of market condition.

 

A Simple Trade Management Rule

This week we will explore a simple trade management rule that allows you to profit in any type of market condition. Despite the recent sharp market correction, Chuck’s option portfolio shown below has $333,806 in open trade profits and an average return 224.2%.

In this week’s video learn how this trade management rule can help you profit in any type of market condition.

Hughes_100815.png 

 

An Ideal Strategy for Any Kind of Market

The Option Spread Analysis below displays an actual spread trade Chuck took on leveraged Financial ETF symbol FAS. Chuck purchased the 50-Strike call at 41.91 and simultaneously sold the 90-Strike call at 18.48.

The call option spread analysis below displays the profit potential for this spread trade assuming various price changes in the FAS ETF at option expiration from a 10% increase in price to a 10% decline in price.

The analysis revels that if FAS increases in price, remains flat or decreases 10% at option expiration Chuck will realize a $1,657 profit and 70.7% return before commission.

Brokerage account statements presented in this video show that there is $656,126.93 in open trade profits with no losing trades utilizing option spread trades. Learn how this option spread strategy is the ideal strategy for any type of market.

Buy FAS 50-Strike Call @ 41.91

Sell FAS 90-Strike Call @ 18.48

Call Option Spread Analysis

 

Profiting in an Up, Down or Flat Market

The following video will look at an option spread strategy that can profit in up, down or flat markets. The Option Spread Analysis below displays the profit potential for an actual Cheniere Energy symbol CNG option spread that Chuck has in his retirement brokerage account.

This analysis reveals the profit potential for Chuck's spread trade assuming various price changes for LNG stock at option expiration from a 10% increase in price to a 10% decrease in price.

The analysis reveals that if LNG stock remains flat or increases in price at option expiration, Chuck will see an $840 profit and a 127% return before commission. A 10% decline in LNG stock at expiration would result in a 100.4% return.

Chuck's brokerage account statements that are presented in this video show that he currently has $656,126.93 in open trade profits with no losing trades utilizing option spread trades. Learn how this option spread strategy is the ideal strategy for any type of market condition.

Call Option Spread Analysis

 

Advantages of Option Spreads

In the following video we will look at trading ETF option spreads. Option spreads have a lot of advantages compared to option purchases. Options are heavily leveraged. When you purchase an ETF call option you are risking a 100% loss. An ETF option spread, however, can profit even if the underlying ETF declines in price.

Advantages of Option Spreads:

  • The call option sale provides downside protection which reduces risk.
  • Spreads help you maintain option positions during choppy markets and avoid being stopped out
  • Spreads can be profitable if an ETF goes up or down or remains flat

Learn how you could profit with ETF option spreads in any type of market condition.

 

Profiting with an Option Spread Strategy

In the video below we will look at a strategy that can profit in an up, down or flat market. Below the Option Spread Analysis displays the profit potential for an actual Google option spread that Chuck currently has in his retirement brokerage account.

This analysis reveal the profit potential for Chuck's spread trade assuming various price changes for Google stock at option expiration from a 10% increase in price to an 10% decline in price.

The analysis reveals that if Google stock remains flat or increases in price at option expiration, Chuck will see a $14,534 profit and 419.3% return before commission. If a 10% decline were to happen he would still see a result of 125.7% return on the Google stock at expiration.

Chuck's brokerage account statements presented in this video show that he currently has $656,126.93 in option trade profits with no losing trades utilizing option spread trades. Learn how this option spread strategy in the ideal strategy for any type of market condition.

Profiting with an Option Spread Strategy.png 

 

Market Neutral Spread Trading

Directional call option trades require the underlying stock to increase in price to profit. Volatile markets can result in getting stopped out of directional option trades and can easily result in a 100% loss. In the following video we will explore how Market Neutral spread trades can profit in any type of market condition.

Market Neutral Spread Attributes

  • The call option purchased will profit if the price of the underlying stock increases
  • The Put Option purchased will profit if the price of the underlying stock increases
  • You risk is limited to the cost of the spread
  • There is no limit on the profit potential of the spread if the underlying stock continues.

The table below lists the current Market Neutral Spread trades recommended in Chuck Hughes' Advisory service. Chuck currently has $166,321.00 in open trade profits with an average return of 285.5% demonstrating the ability of the Market Neutral Spreads to deliver substantial returns with low risk.

ChartI.jpg 

 

Profiting in a Volatile Market with Spread Trading

05-22-2014

Last year the stock market was in a strong price uptrend most of the year allowing directional option traders to realize significant profits. This year the stock market has been more volatile with no clear trend making it much more difficult to profit with directional trades.

  • Directional option trades require the underlying stock to increase in price to profit
  • Volatile markets can result in getting stopped out of directional option trades
  • Volatile markets can easily result in a 100% loss for directional options trades

In the following video we will learn how spread trades can profit in volatile markets and help prevent being stopped our of your position.

Despite the difficult market conditions Chuck's brokerage statements presented in this video show current real time profits of $557,109.09 and an average return of 59.8% for the spread trades in his retirement account.

 

Trading Options for High Returns with Low Risk

In this video we will explore option trading strategies that provide high returns with low risk. These strategies use technical analysis to select options with the best profit potential and strike prices with a high probability of success. Chuck's brokerage account statements presented in this video show $2.721 Million in actual profits trading these strategies with 96.7% accuracy.

Actual Profit Results

Actual Profit Results

These strategies are performing well in today's market environment. Currently Chuck has an average return of 516.5% in his option portfolio and an average return of 264% in his option spread portfolio. Learn how to trade options for high returns with low risk.

Current Profit Result

1) Option Purchase Strategy 516.5% Average Return

2) Option Spread Strategy 264% Average Return

 

A Simple Technique for Multiplying Returns

In this video Chuck will explore a simple option trading technique that allows us to lower risk and compound our returns.

 

High Returns with Low Risk

Chuck Hughes’ brokerage account Profit/Loss Report below lists his current option spread trades for CIGNA, Costco, Johnson and Johnson, Starbucks, Wells Fargo and Yahoo. Despite the recent market volatility, this portfolio has an average return of 422.8%. The minimum profit for this portfolio is 268.1% regardless of the price movement of the underlying stocks at option expiration.

Learn how this spread strategy can produce good returns during almost any type of market condition.

Chuck's portfolio has an average return of 422.8%.

Interesting Image

In this video we will explore an option spread strategy that can produce high returns with low risk.

 

Rolling Over Options Produces 383.6% Return

Rolling over option positions that continue to meet my Prime Trade Select criteria has several advantages:

• Rollovers reduce cost basis and risk

• Allow us to compound returns

The table below shows that my option portfolio has $221,631.00 in open trade profits and an average return of 383.6%% with no losing trades. In this video discover how option rollovers allow us to compound our returns and reduce risk resulting in the 383.6% average return.

option portfolio-chart-chuck hughes

Options Spreads Produce 462.4% Return

The Option Spread strategy is a great way to profit during the current difficult market conditions. Option spreads have the ability to profit in up, down or sideways markets. Chuck Hughes’ option spread portfolio currently has $170,619.00 in open trade profits and an average return of 462.4% with no losing trades. In this video discover how option spreads are able to deliver consistent profits during difficult market conditions.

Option Spread Portfolio Volatility is Back

Although there have been many volatile price moves over the
past year, the S&P 500 Index is virtually unchanged from the price
level it traded in July of 2011. Profiting from directional long or short trades in this type of market environment is difficult if you use a money management system to exit trades before they develop into large losses.  Directional trades can be easily stopped out in this type of market.

The table below displays the open trade profits for my Option Spread Portfolio which currently has an open trade profit of $122,731 and an average return of 230.9%. In this video we will learn how option spreads can profit during non-trending, volatile market environments.

Option Spreads

Option spreads are a great way to profit in non-trending, volatile markets.

Option spreads can profit in up, down or sideways markets.

Chuck's option spread portfolio currently has $151,470.00 in open trade profits and an average return of 194.6% with no losing trades.

In this video discover how option spreads are able to deliver consistent profits during difficult market conditions.

Interesting Image

Selecting Options with the Best Profit Potential

Chuck has been using technical indicators to select stocks and options with the best profit potential for more than 25 years. In this video we will explore the technical indicators Chuck used to select the options in his advisory service option portfolio. This option portfolio currently has $82,322 in open trade profits and an average return of 102.2%.

These technical indicators are easy to download from the internet and it only takes a few minutes to determine if a stock/option is a buy or a sell.

127.5% Average Return Despite Market Volatility

One of Chuck's favorite strategies for profiting in volatile markets is trading deep in the money option spreads. In the money option spreads provide substantial downside protection in the event the underlying stock declines in price and can be profitable if the underlying stock remains flat or even declines in price.