As traders, we are always excited when our option trading system or program produces a winning trade. But this poses a dilemma. Do you hold a winning call option trade for further upside profit potential or do you take profits in case the stock or ETF declines in price with the possibility of a profitable option trade turning into a loss.
I’m sure most of us have closed out a winning trade only to see the underlying stock or ETF continue to rally knowing that we left profits on the table. We also know from experience that it is very difficult to watch a winning trade develop into a losing trade. This is very hard on your psyche as a trader and can help you lose confidence in your ability to be a successful trader.
In this video, we will learn how to solve this dilemma with techniques for protecting profits and at the same time participating 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 selloff in the underlying stock or ETF actually produces more profits with this technique. You can place the trade and take a vacation!
We will look at an actual Market Neutral Spread for the Dividend ETF that will profit regardless of the price movement of the Dividend ETF. The analysis below reveals that if the Dividend ETF remains flat at option expiration a $778 profit and 134.1% return will be realized (circled). A 20% increase in the ETF results in a 449% return (circled) and a 40% decline in the ETF results in a 469% return (circled).
Over the past four years we have experienced a global financial meltdown, severe recession and bear market, high unemployment, increased market volatility and an uncertain economy. This financial turmoil has made it very difficult for the average investor to realize a consistent return on investment.
Trading options can be challenging due to the sheer number of options being traded. For example, if you decide to trade a BIDU option there are over 750 BIDU options to choose from. How can you effectively select an option with good profit potential with so many choices?
In this video we will discuss a simple 3-Step trade selection process that can lead to high accuracy option trading. Discover how I made $1,044,065.26 in actual profits with no losing trades using this option selection process.
Despite the daily volatility, the broad based S&P 500 Index has been virtually unchanged over the past ten months making it difficult to profit from long or short trades. The S&P 500 price chart below indicates there is no clear market trend despite the wide price swings. But my trend following systems have been performing well despite the difficult market conditions producing $932,415.16 in actual profits with 98% winning trades.
Traders need more than a simple trend following system to profit in today’s volatile markets. Trader's need additional tools to filter trades and discover stocks with the best profit opportunities. In this video we will discuss a simple 4-step trade selection process that can lead to high accuracy trade selection during any type of market condition.