Introduction
When it comes to options and options trading, most people have it all wrong. Most people end up getting killed by the things they don’t know about options. As a result, they lose millions every month to a small percentage of insiders who know how to profit off the options market. But, after reading this course, you’ll be on the inside.
I’m going to teach you what options are, how they work and the cash producing insider secrets you need to know to make profit rich options trades.
– How to profit like an insider.
– How to be wrong… and still win on your options trades.
– How to use options to have cash hit your account today.
– How to get rich reaping small, high probability winners over time.
– How to create weekly cash flow using options.
And…How to make huge returns with options!
To get you off to a flying start, I’ve cut out the fat and the fluff and prepared this information just the way you need it.
Watch the Intro video…
Let’s Get Started on Module 1
Module 1: The Million Dollar Secret !
I’m going to give you the million – dollar secret to making any options strategy work. The secret is in picking the right underlying stock… not in analyzing options.
What I teach you about options is based on the underlying stock. That’s why this works. Every option investor who loses consistently is looking for options success by analyzing options. That does not work.
It doesn’t matter what options strategy you use. If you get the underlying stock pick wrong, the options strategy will fail. Here’s a quick example. At one so called option guru’s site, they had covered call options listed by the percentage you could make by selling the option on the underlying stock.
Imagine company stock XYZ has calls you could sell and make 10% in 1 month. So that’s how they listed the best calls… by which ones gave you the biggest return… if it worked! That is financial suicide. You can’t have success in options trading by analyzing options.
Get the stock picking part right and you’ll flat out kill it in the option’s market.
Second, the fact of the matter is, option’s buyers lose most of the time. I am going to teach you to profit in the option’s market by selling options and putting time decay on your side.
When you position yourself like this, you put the odds of success in the option’s market dramatically in your favor… getting rich reaping small, high probability winners over time.
Now for the million dollar secret – The key to being successful with options is, first and foremost, to…
Pick The Right Underlying Stock!
Like I said, “get the stock picking part right and you’ll flat out kill it in the option’s market.”
Here are the key parts regarding stock selection…
The REAL Short Cut To Profit Rich Trades
I want to share with you a core secret of why the trading strategy you’ll here learn works so well… There are two different ways of approaching the stock market in terms of looking for a stock to invest in or trade.
Those two different ways of looking for a stock are fundamental analysis and technical analysis. In other words, from a “predicative” view or a “reactive” view.
The guys doing fundamental analysis read tons of stuff. They read all the company press releases, stacks piled to the ceiling of Wall Street analyst’s reports (what a joke) from every brokerage firm on Wall Street. They read the company’s quarterly earnings reports (what a lie).
Ever read one of these?
These company produced quarterly reports and annual reports are filled with jargon and accounting language that nobody can understand and some of which seem to be totally made up. Like the “synthetic lease” found in one of Krispy Kreme Donut’s quarterly reports.
The fundamental analysts read all this stuff and more, etcetera, etcetera, ad nauseum… From all these piles of crap, they come up with calculations and stock price valuations to determine if a stock’s price is overvalued or undervalued and from there they try to “predict” the stock’s price movement.
Fundamental Analysis Is
A Total Waste Of Time !
There are two reasons fundamental analysis is a total waste of time:
REASON #1: You cannot rely upon any information you get from the company you are researching or from Wall Street analysts.
Before I found success as a trader I was trained as a stock broker on Wall Street so I’m telling you this as an insider –
Company Management’s Job
Isn’t To Tell You The Truth…
It’s To Get You To Like The Stock !
Same thing with Wall Street analysts, company management blows smoke up their skirt and the next thing you know, the analyst’s brokerage firm is issuing a “strong buy” recommendation.
REASON #2: Wall Street brokerage firms have already been busted for “conflict of interest” when it comes to recommending stocks. They would issue “buy recommendations” then talk amongst their peers and friends about what a piece of shit the company was.
Nobody On Wall Street Cares
If YOU Make Money,
They Only Care If THEY Make Money !
You cannot trust any information you get from a company or from Wall Street!
Since you cannot trust any information from the company or Wall Street analysts, any time you spend on fundamental analysis is a complete and total waste of time. Besides, all the relevant information is already built into a stock’s price. And… that leads us away from fundamental analysis, into technical analysis.
Technical analysis is “reactive.” And that’s what I like about it. Understand something: I don’t try to predict anything. I simply react to a stock’s price movement.
I like to ride trends in a stock’s price. If the stock’s price starts moving up, I react by buying it. It’s a reactive trading approach and it all starts with…
Stocks That Are Already Moving Up In Price !
Once you limit yourself to only getting involved with stocks that are already moving up in price, you’ll eliminate large losses and dramatically improve your overall stock market results.
Stick to this first rule and…Everything You Do In The Stock Market Becomes 100% Easier! And, if applied correctly, this list of stocks can also put you…
Light Years Ahead Of Every Other Investor You Know !
In fact, if you were to hold a little investing challenge with your friends and, just to make it interesting, you let them have any competitive advantage in the stock market they wanted…
Some of them would say they wanted a recording device inside a CEO’s office. Others would say they wanted Warren Buffet as their investment advisor.
Others would say they wanted carefully “researched stocks” with stuff like the “lowest P/E ratio.” Or the “best bottom line”… or… the “greatest quarter to quarter sequential earnings growth”… or… the “largest number of insider buying.”
Or the Fibonacci, Elliot Wave reversal with a thousand other technical indicators… half of which they can’t even pronounce.
And despite giving them any competitive advantage they wanted …
You’d Still Blow Them Away!
Simply by having a list of stocks that are already moving up when you find them.
Your biggest short cut to short term trading success is getting the list of stocks already moving up in price because…
Once An Object Is In Motion…
It Tends To Stay In Motion !
Therefore, one way to profit off that “object in motion” concept as it relates to the stock market is to start with a list of… Stocks That Are Already Going Up In Price !
Before I go any farther, I want you to understand a big benefit to trading weekly options my way.
Anytime you buy a stock, only three things can happen…
- The stock goes up.
- The stock trades in a narrow range… and doesn’t really go up or down.
- The stock goes down.
Those are the only three possible outcomes.
With normal investing, you only win in Condition 1 – when you pick stocks that go up.
If the stock stays flat and trades within a narrow range, Condition 2, you lose time… And if it goes down, Condition 3,you lose money.
So in “normal investing”… you lose in two out of three possible outcomes! This is not good!
With my options trading system, the underlying stock pick is key… but…
If the stock goes up, you win.
If the stock trades in a narrow range, you win.
If the stock goes down, you could lose or you could win because you select the low point.
So, with my system… you win in two out of three possible outcomes.
Plus, these trades only last about 7 days. So this short time frame works in your favor.
The bottom line here is that it’s far easier to pick stocks this way than to have to pick stocks that have to go up to win.
When you confine yourself to trading, only and exclusively, stocks that are moving up in price, you drastically swing the odds of any option strategy in your favor!
Please do not discount the importance of what I have just explained to you. This is the very core of my phenomenal success. This can be your “secret key” to turning very small trades into very big trading profits.
To clearly see a stock that is already moving up in price and to spot the best time to buy and to know when to sell, we’ll use pre-set charts.
Here is the Video on How To Set Up Your Charts…
This set up will also help us filter stocks as well. This way, when you type in a stock symbol, you can tell in about 2 seconds if it’s a good stock to trade.
If you already have your online trading account opened, then you already have a charting capability. If you don’t have your online account opened or you plan on calling in your trades over the phone, then you can use one of several free charting websites found online.
I set up my charts so that every time I plug in a stock’s ticker symbol, I see everything I need to decide if it’s a stock I would like to trade.
I can see if the stock is in a nice trend when I find it. And I can see if it has the potential to move up in price… three or more dollars per share.
I pre-set my charts to contain a six month daily bar chart. This six-month view gives me the best visual read on the stock’s trend. Each bar represents one trading day. The top of the bar is the day’s highest price the stock traded at. The bottom of the bar is the day’s lowest price the stock traded at. The left hash mark is the price the stock opened at that day and the right hash mark is the closing price of the day.
Here’s a close up view of 15 days in bar chart format…
Put together, day by day, we see a general trend line. In this example, the trend is up….
Added to my charts are three technical indicators.
I use these technical indicators to show me the short term trend, intermediate term trend and long term trend. The technical indicator I use is called an “exponential moving average” (EMA). For a short term EMA, set the trading range to be in the range of 9 to 40 trading days.
For an intermediate trading range, use an EMA based on 40 to about 100 days range. And for your long term indicator, use roughly 200 days or more.
The exponential moving average ( EMA ) is used to show me the direction of the trend and the stock’s current price relative to it’s EMA.
Added to your charts should be daily volume. Any stock that trades below roughly 500 thousand shares a day should be avoided.
With that set-up, anytime you type in a stock ticker, you’ll see what you need to see to pick up the pattern recognition that leads to profit rich trades.
And I’m specifically looking for stocks that are in a positive uptrend. I look for a nice, smooth upslope in the stock’s price, as well as rising EMAs.
The stock’s price, based on the six month chart, should have the potential to move up in price three or more dollars per share over a two to ten day time frame.
Relative to the EMA’s I want the stock to be trading above all three with the short term EMA clearly serving as support.
What you just read in the last section is a multi-million dollar trading secret. It’s made me more money trading than I care to admit.
And it will be the foundation upon which we build our option’s strategies.
Only focus on stocks that are in positive trends. Because stocks that are in positive trends have the highest probability of going higher… staying in a range… and not going down, thereby increasing our odds of success with weekly options.
The very first thing I’m going to teach you is how to analyze the broad market before you look at any individual stocks.
In my research, I have discovered that any trader can improve their odds of success by 85% simply by trading in the same direction as the broad market. So, if the broad market is bullish, you would only trade form the long side. If the market were bearish, you would only trade short and, if it was in between, you’d have just as much success trading long or short.
But that only applies to regular stock trading and investing. So with options, we want to put our fingers on the pulse of the broad market to see what the trend is, as this will have an effect on the individual stocks we pick.
To put your fingers on the pulse of the broad market, simply type ticker symbols DIA, SPY and QQQ in your pre-programmed charting program.
If these market indexes are above all three trend points, then you will have a lot of great options trading candidates. Even the ETF stock indexes will be great to trade options on.
If the broad market is below or trapped between trend points, then our selections will be fewer and we’ll have to be very cautious.
So, when you get the list of stocks that have available weekly options, follow these steps…
Step One…
Go to your pre-set stock chart set- up featuring your three levels of support. The first time you do this will be the longest it ever takes you. But it’s a great exercise so I highly recommend it.
Type each ticker symbol into your chart program and look for stocks with support on all three trend points.
The reason I say, “the first time is the longest time” is because you will eliminate 75% of the stocks that have available weekly options because they won’t be in good trends.
Here’s a great example of a trend…
Let’s review… In this Module you learned…
The secret to options success is picking the right underlying stock…
Why we use technical analysis to find the stocks for weekly options trades…
And, how to set up your charts. Here is the link to the list of stocks with available weekly options…