Best Options Trading Strategy
Most people who trade options think they can profit by ignoring price direction; this is why most Options traders are unsuccessful and lose money.
Market Timing is the ability to identify key market turning points and strong market moves in advance with a very high degree of accuracy.
Combining proper market timing with key Options tools and strategies taught in this course gives.
Moreover, The Options trader the best chance at success, offering very low risk, high reward and high probability trading opportunities.
What you will learn in this class you will not find anywhere else or read it in any industry trading books.
Best Options Trading Strategy
My timeframe is very short – two weeks to two months. By analyzing chart patterns and then trade, I have the confidence to be patient once I put on a trade.
I am what many consider a swing or position trader. I wait for a trade to fulfill a price move or reach a specific price.
The trades may not (and usually do not) get off to a fast start. My trade ideas are mostly at-the-money plays with very little speculation (other than a small percentage of out-of-the-money).
I am not looking for a huge move to ensure my trades pay off.
This approach is particularly smart in the current market conditions.
The low VIX means options are cheap right now; the expectation for market movement is quite small; we are in an ideal stock picker’s environment.
I don’t have to go too far out on the risk curve to make a decent return.
A spread reduces the amount of money exposed to the trade.
It also increases the percentage of the profit that can be made in the trade.
It does reduce the potential upside that could be made if the price movement is much greater than analyzed for the time remaining.
However, the best options trading system should incorporate the same probability projection as the underlying stock position.
What are the probabilities of the price moving to a certain level based upon the candlestick signals and the confirming indicators?
Utilize the confirming indicators to decide which options trading strategy is the best for the analysis of that trade.
What is the best options trading system
Knowing a number of options strategies allows the investor to exploit the price move.
Put And Call
Options provide many benefits versus buying or shorting the stock outright.
Because candlestick analysis incorporates the use of probabilities in its evaluation, that same thought process can be extrapolated into options strategies.
However, these strategies can be applied with some simple common-sense evaluations.
How much time is left until expiration? What has been the previous volatility of the underlying stock?
What is the likely target for this price move based upon the potential pattern formation, resistance levels, and strength left in the stochastics?
Analyzing this information with the evaluation of what the candlestick signals are revealing allows an investor to put the proper option trade in place.
Understanding how to use candlestick signals and options strategies correctly expands the profit opportunities that most investors do not take advantage of.
For example, a stock price that appears as if it could move from the $40 area to the $45 area in a specific timeframe may have call options that do not provide a significant profit for the risk exposure.
Moreover, in this case, selling the puts may make much more sense.
Alternatively, buying the 40 calls and selling the 45 calls might produce the optimal option trade.
The goal may be to protect currently held assets or to speculate on the anticipated price movement of an underlying financial instrument.
The investor can select from the most commonly used strategies or create a custom strategy.
The best trading strategy is the one that will accomplish the financial goal of the investor.
Before starting with this strategy you need to keep at least Rs. 1,00,000 in your trading account.
So that you don’t have to risk much of your trading capital
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