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A Word of Caution!

On today's Live Trading Class, we noticed an anomaly across the boards on option pricing.  Not only was there a significantly higher than normal amount "priced in" on the ATM options, but also IV levels are scorching.  This is a sign of things to come.  Implied Volatility (IV) is the measurement of potential future movement, and when it increases, that typically means stocks are likley to drop.  While I am not trying to be a fear monger, nor do I have a crystal ball, I think it would be prudent to be cautious in this current environment.  The Market is telling us it is gearing up for a down move.  If it does, are you prepared?

Welcome to Money Week!

Starting Wednesday, July 10, and running through next week, we will host a plethora of stock option live trading events, educational classes and opportunity-based online sessions.  Many of these webcasts are listed on our Calendar, however those that are Invite-Only require special access.

If you would like to join us for the public sessions, please click on the Calendar tab at the top of this page.  If you are interested in the sessions which are invite-only, please click Contact Us and request your links.

As always, we are here to help in any way with your investment needs.  Please do not hesitate to contact us with any questions, concerns or trade related issues.

Happy Money Week!

Why Become an Options Spread Trader?

One of the greatest myths of investing is that in order for you to become a great trader, you have to be a great "stock picker".  However, this could not be farther from the truth. Actually, while most traders will own stock or funds in their portfolio, the best traders don't care about finding the perfect stock.  Why not?

Well, it is actually simpler than you might think.  I look at stock traders like I look at a person doing home repairs with only a hammer in their toolbox.  So, in order for them to be successful, they must find a nail.  Stock traders spend their entire time looking for the perfect nail (stock) to fit their only tool (buying shares).  Once you realize that there are thousands of other tools that one could have in their toolbox, your paradigm will change dramatically.

This is where options come in.  While even most option traders simply buy a Call or a Put depending on which way they believe the stock will move, the only way to truly succeed in the markets CONSISTANTLY is to learn to become a Spread Trader.  Spread Trading is the art of combining together multiple option trades (buying and selling calls and puts) to create strategies that can be used to profit on a stock NO MATTER WHAT IT DOES.  The best of the best learn ways to profit in multiple directions on the stock.

Do you want to learn how to do this?  If your answer is no, then I will tell you what I tell people all the time who do not have the time to learn, GET OUT.  Do not be the donator.  Those that do learn will always win. 

IF you said YES, you are ready to learn, we are here to help.  Attend one of the Free Classes listed on the right of this page.  Sign up for our free newsletter on the left.  Better yet, use the above CONTACT US button and let me know you are ready, and I will put together a plan with you that both fits your budget and your schedule.

The only person who can lift the anchor and set the sails is you.  Until then, you will be stuck in the same spot.  I am here to help you set sail, leave the harbor safely, and reach all of those dreams and goals you have set for yourself. 

Happy Trading,

OptionDave

Welcome to Earnings Season

We are currently right in the heart of Earnings Season, and if early results are any indication, it is going to be a blockbuster one indeed.  So far, we have seen stocks outproduce the predicted moves in impressive fashion.  On today's Free Trading Demonstration Webcast, we looked at three unique types of trades, all of which have been performing excellently in recent weeks.

Here is an example of one of the trades we are following this week from our Monday Live Trading Class:

Boeing (BA)- 340.68 at 3pm ET on Monday

Earnings: 1/31 Before Open

Priced In Move: 17.80

Buy February Week 1 350/352.50 Call Spread for $.80 Debit

Profit Potential: $.1.70

Break Even Point: 350.80

Exit: Hold to Expiration

Asset Allocation: 2 Units

On the Live Trade Exits Class tomorrow, we will exit this and all trades placed this week.  To join us, please click on the registration link to the right of this Blog on this page.

Also, we will be starting a Boot Camp Training Series next Tuesday.  If you are interested in joining us for this, please email us at Support @ETNtrade.com so that we can give you the details to enroll. 

Let's make 2018 our best year ever!

OptionDave

'Tis the Season

The Holidays are upon us and many people are busy hosting guests, spending time with family, shopping for those bargain deals and putting together their New Year's Eve plans as well as resolutions. However, as hectic as things may be, DO NOT neglect your portfolios.

If previous years are any indication, we may see a bit of a selloff in the final week of the year. This is often due to profit/loss taking by traders looking to report them on their 2017 taxes.  They then often buy right back in after the first.  Last year, we saw a dip in the Dow heading into the final trading days followed by a nice gap up after the 1st.  I see no reason for us to expect anything different this year.

Today, in our final trading session of 2017, we looking at trade on GOOGL, DIA, GS, JNJ, AMZN, T and others.  We used past performance as a high indicator of this week's potential outcome, combined with technical indicators to justify the moves.

As you are cleaning up your homes after the Holidays, make sure you do not neglect cleaning of your fiscal home as well.  As always, we are here to help.

Join us this week for a free Live Trading Class, where we will demonstrate the incredible power of Option Spread Trading, take a look at how we did this past year, and set our sites on specific opportunities heading into 2018. 

To join us, simply click here to register: REGISTER FOR FREE EVENT.

I hope to see you there!

Happy Trading,

OptionDave

ETNfree

Next Free Webinar Event:

 The ETNtrade Trading System

Focus: Live Trade Exits

Friday, September 7th @ 2pm ET

Click Here to Register

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