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ETF Extremes Options Strategy

Individuals that look for frequency of trading within a given options strategy are often disappointed with the long-term results. In most cases, the less you trade, the better you will do in the long run and the long run is what matters most.

This options trading strategy uses our proprietary models to take advantage of sentiment and technical extremes. We are proud to be one of the only stock options-based newsletters to offer recommendations based on sentiment and technical extremes in the market. This options strategy requires patience coupled with a disciplined approach. The strategy will make approximately, on average 1 to 3 recommendations a month with holding periods of 1 to 15 days; however, there will be some months when no recommendations are made. The key to this options trading strategy is patience. Waiting for the appropriate scenario to recommend trades with a high probability of success is what makes this strategy a success.

DIA, IWM, SPY and QQQQ are the underlyings of choice for the ETF Extremes Options Strategy.

Unfortunately, this strategy is proprietary so we are unable to give you all the details.

Check out the performance!

If you like the idea of trading stock options, but also have a life away from your computer, Autotrade is the perfect solution. You no longer have to wait by your computer screen and monitor every e-mail throughout the day. The Autotrade service is “hands free” trading and is provided to you at no extra cost to the subscription price. With the proper authorization, an online broker can execute all recommended trades both entry and exit, profit or loss, faster than you could place them yourself and often at better prices.

Click here to find out more about Autotrading.

Sector ETF Extremes Options Strategy

A short-term stock options strategy that is based on a technical mix of overbought and oversold extremes in the market. The Sector ETF Extremes Stock Options Strategy is the same as the ETF Extremes Options Strategy with the only difference being the underlyings of choice.

Biotech (IBB), Consumer Discretionary (XLY), Health Care (XLV), Financial (XLF), Energy (XLE), Industrial (XLI), Materials (XLB), Real Estate (IYR), Retail (RTH), Utilities (XLU) are the underlyings of choice for the Sector Extremes Option Trading Strategy.

Individuals that look for frequency of trading within a given strategy are often disappointed with the long-term results. In most cases, the less you trade, the better you will do in the long run and the long run is what matters most.

This strategy uses our proprietary models to take advantage of sentiment and technical extremes. We are proud to be one of the only stock options-based newsletters to offer recommendations based on sentiment and technical extremes in the market. This options strategy requires patience coupled with a disciplined approach. The strategy will make approximately, on average 1 to 3 recommendations a month with holding periods of 1 to 15 days; however, there will be some months when no recommendations are made. The key to this stock options strategy is patience. Waiting for the appropriate scenario to recommend trades with a high probability of success is what makes this strategy a success.

Unfortunately, this options strategy is proprietary so we are unable to give you all the details. Although, we are certain if you follow our daily commentary and any subsequent trades you should gain a firm grasp of the strategy.

Check out the performance!

If you like the idea of trading stock options, but also have a life away from your computer, Autotrade is the perfect solution. You no longer have to wait by your computer screen and monitor every e-mail throughout the day. The Autotrade service is “hands free” trading and is provided to you at no extra cost to the subscription price. With the proper authorization, an online broker can execute all recommended trades both entry and exit, profit or loss, faster than you could place them yourself and often at better prices.

Click here to find out more about Autotrading.

Nasdaq 100 (QQQQ) Gap Fade Options Strategy

Bring your stock options trading to new heights. The Gap Fade stock options strategy is one of the most effective and easiest options trading strategies to learn. It also has the potential to be very profitable over the long-term. In fact, James Altucher, a successful money manager and author of “Trade like a Hedge Fund” dedicated the first chapter in his book to trading gaps. He states that gap trades are the “bread and butter trade” for many hedge funds.

Here at Crowder Investment Research, LLC, we have an unconventional method of trading gaps in the ETF QQQQ which represents the NASDAQ 100. Backtesting this particular method shows a win ratio which has exceeded 78% over the last ten years. Furthermore, the options strategy had a win ratio of 79% during the bear market of March 2000-September 2002. Take that win ratio and add a disciplined approach to trading the strategy and it’s easy to see how successful this unique strategy can be.

Basically, the Gap Fade options trading strategy consists of short-term options trades utilizing calls or puts that last a maximum of two days. The strategy typically trades one to five times a month, thereby limiting exposure to the market.

Statistical Data

The underlying QQQQ has a success rate of over 78% for the last ten years. With a total of 817 gap fade opportunities with 649 successful gap fills it is imperative to stay disciplined with this strategy. The following chart shows the year to year success rates of QQQQ gaps that are filled within the same day. The percentage is even higher if trade is held for a longer period. However, the risk exposure is also higher, so in most cases it is recommended that you follow the guidelines. Inherently options have finite lives, so holding on to an option for a lengthy period of time, in hopes of the initial gap filling, has the capability of being catastrophic to your investment capital.

Check out the performance!

If you like the idea of trading stock options, but also have a life away from your computer, Autotrade is the perfect solution. You no longer have to wait by your computer screen and monitor every e-mail throughout the day. The Autotrade service is “hands free” trading and is provided to you at no extra cost to the subscription price. With the proper authorization, an online broker can execute all recommended trades both entry and exit, profit or loss, faster than you could place them yourself and often at better prices.

Click here to find out more about Autotrading.

My Stock Options Trading Strategy E-Book (White Paper)

Learn the secrets of my favorite options strategies: “Patience, Position-Sizing and Long-Term Performance: A Guide to Several Unique Stock Options Trading Strategies that have passed the Test of Time”. My acclaimed E-book provides you with all of the details and research necessary to effectively trade our options strategies. Purchase today and receive TWO FREE months of our acclaimed newsletter plus Insider privileges ($40 value).

Book Includes

• The Greeks
• Seasonality
• ETF Extremes Options Strategy
• Gap Fade Options Trading Strategy
• Everything Iron Condor - A Powerful, Neutral-Based Options Strategy
• Various Position-Sizing Techniques for Your Risk Profile
• Risk Management

Overbought and nearing yet another signal

Two out of the four major indices and a few sectors I follow have moved back into an overbought state. The tech-heavy NASDAQ (QQQQ) is back on my radar as the indice is once again near an overbought state. My preference would be to see QQQQ (and all of the major indices) move slightly higher tomorrow. A move higher would certainly push QQQQ into an short-term extreme overbought state.

Also on my radar (for the PaperTrade Extremes) is the Materials sector (XLB). It has yet to move into an oversold state, but the RSI Wilder (2) has pushed towards 5, so another day of declines should see a trigger in the strategy.

April 23, 2008

Major Benchmarks

• Dow (DIA) - 72.3 (overbought)
• S&P (SPY) - 68.3 (neutral)
• Russell 2000 (IWM) - 59.8 (neutral)
• Nasdaq 100 (QQQQ) - 72.5 (overbought)
• Emerging Markets (EEM) - 56.5 (neutral)

more overbought/oversold levels on additional sectors found in the Insider’s page (Buy the White Paper and receive Two Months of the Insiders Page Free) - less than $1 a day.We work hard to bring you our latest views, opinions and research on a daily basis. If you are a loyal reader and find our thoughts useful please show us your support by joining our newsletter service.