Follow Us

What Do Option Trading and the Olympics Have in Common?

Many people come to ETNtrade wondering how me continue to create returns that outpace our competition by such a wide margin.  Well, in the spirit of the Olympics, I thought I might take a moment to explain.  And let me warn you, the answer is so simple that it might shock you.

It all comes down to a proper mental approach and preparation through practice.  Let's start with Practice.  Many people tell you that practice makes perfect.  Well, let's ask them this:  Do YOU practice?  I find that most "experts" don't.  Why not?  I can promise you this... there is no one reading this post that does more practice trading than me.  I practice what I preach.  But I don't just practice, I perfectly practice.  That is right... practice will never make perfect unless you are practicing perfectly.  We do not want to create bad habits, so make sure you are practicing the right way.

Next we have preparation. Being prepared mentally is very important.  Just like the athletes we cheer for in the Olympics, the right mental attitude is critical for profitable trading.  This is why 1 of the 7 segments of my Boot Camp Training is dedicated solely to Psychology.  I feel it is that important.  As we go through our trades with our Members on Mondays and Wednesdays, we already have an extensive watch list put together (and of course I share mine with our Members), we research each stock in depth, and we spend much of the 2 hours of Live Trading analyzing and preparing our trades.  So what do we look at?  The answer is probably not what you think.

The most important part or our analysis is measuring what the Market itself thinks the stock will do.  While most people sit down scouring through financial numbers (as if they really understand them), and reading what "analysts" have to say about the stock, we look at the numbers.  There is so much that can be determined just by looking at the options on a stock.  Many of these things will be discussed on our Free Live Trading Classes this week.  I would love for you to join us by clicking the link to the right of this blog.  If you cannot make it, let's set up a time to talk.  You can always contact me directly at Support@ETNtrade.com.

See you soon.  Happy Trading and God Bless,

OptionDave

President and Founder of ETNtrade

 

BREXIT and How It Will Affect Us

Now that BREXIT has come and gone, and some would call it a surprising result, let's focus on how this will affect Option Traders heading into the coming weeks, which will include the start of Earnings Season.

First and foremost, RELAX!!!  The Dow is only down ~100 points from where it was on Thursday of last week.  That is right... 100 POINTS!  All this yelling and screaming on TV would make you think it was Armageddon.  But that is simply not the case.  There was a significant amount of buying heading into BREXIT, and since the result they were looking for did not hold, we sold back off.  That is it! 

Now that we are all breathing again, there was indeed one huge effect on options:  The VIX! The VIX has almost doubled since the low on June 6.  It is closed Friday, June 24 at a ripe price of 24.74.  This is scorching in relative terms, which means most options will be pricey going into Monday.  We will see what the Market has to hold for us next week, but if it continues to drop, we will see these levels stay up here.  I predict they will come down a bit personally, but that is just my 2 cents.

So, what do we do now?  Keep in mind, high volatility levels mean high premiums.  Most people say "Sell high premium and buy low ones".  I am not in that camp.  As a spread trader, we are buying AND selling, so the premiums will be high on both.  The only real effect inflated premiums will have on our trading is how far out you might have to go to get a good risk to reward on an OTM Debit Spread or RIC.  Don't get greedy.  This is not the time to try and hit a homerun.  Be conservative on your strikes, look to hit some singles and get some runs in.  Until we see what Monday has to hold, I also would not be jumping on the Iron Condor bandwagon just yet either.  Yes, they will work great if things quiet down, but we have yet to see if that will be the case. Monday will be a big telling sign for just that.

So, in short, don't panic, keep doing what you know works, hedge and be patient.  If you can manage those few things, you will be very happy come week's end.

Happy Trading,

OptionDave

Open House Tuesday, April 19th at 1pm ET

Hello Traders,

I would like to invite you to our Open House this Tuesday, April 19, from 1pm to 2:35pm ET.  In this session, we will be discussing how to trade Options on Earnings, with a focus on Google and Microsoft.  You will not want to miss this session.

You can register by clicking on the link on the right hand side of this screen.  

I hope to see you all there.  Happy Trading,

OptionDave

2015 Year End Results

We have officially closed the books on 2015, and what a great year it was.  Using our proprietary Unit Allocation Model for diversification and money management, we were able to obtain a Net Profit of over 1200% ROR on our $100,000 mock portfolio.  We are very proud of these results, and will gladly put our system up against any other Option Trading System on the Market today.

While our Members are very happy with these results, and it shows as they continue to attend our bi-weekly Live Trading Classes, we have many people who have been on the sideline for some time now.  Well, what better time than TODAY to get onboard.  Either attend one of our Free Live Trading Classes by clicking Register Now in the box to the right of this blog, or click Contact Us and the top right and set up a time for us to talk.  With the Market in peril and Volatility extremely high, I do not think you can afford NOT to join us now.  We are here to help, and the ball is in your court.  Let us know how we can help.

And to our Members, I will see you all on our next Live Trading Class where we will continue to create huge profit trades.  Let's make 2016 our BEST YEAR EVER!

Happy Trading,

OptionDave

Record Breaking November

The results have been tallied for November Expiration, and it was quite a month.  We started the year with a Mock Portfolio valued at $100,000.  As of October Expiration, that portfolio was worth $739,877.  At the end of November, it was a staggering $1,106,262.  That was a 50% ROR in November alone.

We look to continue that momentum into December.  We already have Week 1 of December in the books and it netted up a healthy 11% ROR, so we are well on our way.  The question is... will you be joining us?

ETNfree

Next Free Webinar Event:

 The ETNtrade Trading System

Focus: Introduction to Options

Thursday, March 7 @ 1pm ET

Click Here to Register

ETNnewsletter

Sign up for ETNtrade's Free Newsletter to receive:

  • Updates on current trends
  • Real trade results and analysis
  • Upcoming watch list candidates

ETNwatchlist

Login Form