Strategies
Here’s the Proven Options Trading Strategy That’s Delivered Over 1,000 Winners in 11 Years…
Don’t Fight the Momentum – Ride It
The first step to all technical trading is identifying the trend you’re in. In a bull trend, you go long via call options. In a bear trend, you go short via put options. As an options trader, it’s critical that you understand that you can — and should — trade bear markets. When markets go down, it’s not the time to be on the sidelines, and you shouldn’t necessarily try to get bullish trades “at a discount” because prices might drop further.
Trade what the market gives you and don’t fight the momentum, whether that trend is up or down. If you like cheap options trading, most of our recommendation are on call and put options that are priced under $1.
Of course, it’s easy to see trends once they’re over, but the only way you can truly profit is to identify the direction of a trend before it has run its course. That’s why I let the charts tell me where the momentum is.
One of my favorite parts of what I do is sharing the charts’ signals with my readers to help them see what I see so that they don’t waste their time or money fighting the momentum. I spend a lot of my time researching the market, but I really do keep things simple: I identify the broader trend, and then I look for stocks that are breaking out or breaking down to take advantage of that trend. Option strategies for earnings are great ways to make super returns and there are other option trading strategies we use plan for our triple-digit winners.
A 3%-5% up or down move in the underlying stock can mean a return of 100% or more if you’re in the right options — and choosing the right option to ride the momentum has a lot to do with price.
The secret to riding the momentum is this: Buy higher priced options when the market is breaking out or tanking because that is where the explosive profits are. In a trading range, go for cheaper options because you can put on more trades and increase your chances of making money.
