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Chuck’s Prime Trade Select system for selecting stock trades has produced a lot of winning stock/ETF trades. Whenever you have a winning stock trade you face a dilemma. You must decide whether to hold the trade for further upside profit potential or to take profits in case the stock declines in price with the possibility of the trade turning into a loss. Market volatility can quickly turn a winning trade into a losing trade.
In this video, let’s explore a stock spread strategy that allows you to ‘lock in’ profits for a winning stock trade and at the same time allows you to participate in any further upside profit potential if the stock continues to move up in price. Learn how to set up these stock spreads that can profit if the stock price goes up, down or remains flat.
Previously we explored a strategy for discovering Super Stocks. Super Stocks have a long history of producing returns that far exceed the returns of most growth stocks and market sectors with significantly less volatility and risk.
If we can identify a Super Stock moving up in price, we can also profit from purchasing call options on Super Stocks which allows us to harness the leverage options provide.
In this video we will explore our strategy for selecting low risk entry points for our Super Stock option purchases. A low risk entry point helps prevent being stopped out of a trade and increases the accuracy of our option trading.
Actual option trades will be used to demonstrate how low risk entry points can help you become a more profitable option trader.
Protecting Your Profits
In this video we will learn a technique for protecting profits and at the same time participate in any further upside profit potential.
This technique is simple to implement and once it is in place you can forget about the trade. No need to monitor the markets or world events. Bad earnings reports don’t matter. A severe sell off in the underlying stock actually produces more profits with this technique. You can place the trade and take a vacation!
In this video we will look at a simple indicator that allows us to focus on the small number of stocks with predictive and repetitive price patterns. Most stocks do not have predictive price patterns. We will also take a look at finding a low risk entry point for this select group of predictive stocks. Finding low risk entry points with predictive stocks will give us a huge advantage when selecting profitable trades.
This trade selection process has led Chuck to $862,039.79 in actual profits with an average return of 93.5%. Learn how these two simple indicators can give you the edge for finding profitable trades.
In the following video we will explore the use of put options to protect profits for stock and ETF positions. Purchasing put options can allow us to 'lock in' profits on stock/ETF positions regardless of the price movement of the stock/ETF.
With put protection in place we don't have to worry about bad earnings reports, large price declines or placing protective stops with our protected stock resulting in stress less investing.
The table below list the open trade profits for Chuck's put-protected stock/ETF portfolio. This portfolio has $130,098 in open trade profits and an average return of 98.4%. Even in the unlikely event that all of these stocks declined to zero this portfolio would still be profitable.
In this video we will explore the Married Put Strategy which is a spread strategy that is implemented by purchasing a stock and purchasing a put option. The married put strategy greatly reduces the risk of stock trading and at the same time does not limit the profit potential of a stock purchase as the stock increases in price.
Many times the maximum risk of a Married Put trade can be limited to as little as 2 to 3%. If you have bad timing when you enter a Married Put trade, you can simply take your 2 to 3% loss and enter a new trade as you are not exposed to large losses. Married Put trades are especially effective with dividend paying stocks as the dividend can be used to help pay the cost of the put option further reducing risk.
The Married Put calculator below shows the profit/loss potential of an actual US Bancorp married put trade that Chuck took assuming various price changes in US Bancorp stock at option expiration from a 30% increase to a 60% decline. Chuck’s maximum risk on the trade is 1.5%. His profit potential is not capped and as the stock moves up in price, his profit increases. This trade allows Chuck to take a low risk trade and participate in the US Bancorp uptrend. If his timing is wrong he can take his 1.5% loss and enter another trade opportunity. Chuck doesn’t have to worry about protective stops, bad earnings reports or big down moves in the stock.
Actual US Bancorp Married Put Trade
You can learn how to select stocks and gain results just like the Inner Circle did - watch the video below to learn more: