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Options add a cog to
your trading wheel. What makes these instruments so special is
that they are not only capable of profiting when the trader
properly picks the direction of an impending trend but also
when, through the use of appropriate strategies, one properly picks a
breakout in volatility - or a sharp move in either
direction.
Through a unique
approach of combining technical analysis with options trading
techniques, including a monitoring of implied volatility
conditions, we are able to eke out some of the most effective
risk-reward trading opportunities possible.
Additionally, between
our educational section, which is constantly growing, and
special articles on the topic, we provide the budding options
trader with a solid grasp of the skill set that is necessary to
effectively utilize these magnificent trading
tools.
Regardless
of whether you are a seasoned options trading professional or
are taking your first steps into the amazing world of options,
you will find that our options trading picks and education
provide you with a basket of opportunities you would be hard
pressed to find elsewhere. The
following is a sample options pick. To
learn more about methods we use in selecting Stock Picks and Options
picks, you may read an in-depth
article about How
we Choose Our Trading Picks.
Jul 17: What a move!
For those who exited at the close today, a profit of well over 200%.
Jul 14: Finally, a breakout.
Fingers crossed, it will move quickly towards our target. If not much ground has been
gained mid-week, exiting the position might be a good idea, in order to limit
loss of time value premium. Jul 11: The underlying
still hasn't broken out, but the pattern is still in play. We'd push the time
stop back a few days (to Jul 18) to allow for a potential last-minute
breakout.
Jun 25: This underlying has
been locked between converging trendlines for around two months. The apex is
probably a month away at this point. So, if the pattern is a legitimate
symmetrical triangle, it should breakout within the next couple of weeks.
The highlighted options strategy is a
Strangle on the nearest strikes of the front-month (July). Using Aug
strikes would probably not be a great idea because implied volatility (at nearly
40%) is high on that options series, compared with the 31% for this month's. The
target is for a move to either 44.0 or 57.0, depending on whether there
is a downside or upside breakout. A time stop of Jul 13th or so might be
considered.
Our
Options Trading Picks come with a rundown of technical
developments and trading parameters (as seen above) as well as
with a payoff diagram of the highlighted options strategy and an
implied volatility chart (as seen below)...
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