July 28, 2017

The Options Strategy that Outperforms

We have had a few weeks of sideways trading and as a result short-term extremes have been nonexistent. Yes, there have been a few potential short-term set-ups, but they never truly entered into a short-term extreme. GLD was certainly close, but the trade never came to fruition.

As we all know the strategy enters periods of stagnant trading. Again, this is a long-term approach to options trading and is to be expected.  Boring, maybe to the aggressive crowd out there. But, I am more interested in the profitable trades. Trades that I am confident in due to the short-term extremes that have entered the stock market – high-probability trades. I think the win ratio and returns of my options strategy speak for themselves.

Ultimately, this whole endeavor is about creating and teaching you a way a successful way to make money using stock options. I have found that and I hope you can join me for the ride.

Theta Driver Options Strategy

The Russell 2000 (IWM) is three days into the August options expiration cycle and the high-beta index is only $0.37 higher. The credit spread that I added over 20 days ago, is worth $.45, or $.11 higher than the price I sold for the IWM credit spread. I am still quite comfortable with trade and will continue to allow the statistics to play out. Time decay should really start to set in over the next few weeks.

I will be issuing another credit spread trade over the next two days so stay tuned. I plan on adding a position in one of the hottest precious metals so stay tuned!

*I will be offering my new Credit Spread Strategy after August Expiration so if you are interested please email me and I will save you a spot. I will be limiting the amount of subscribers. The cost of the new service will be the same as my High-Probability, Mean-Reversion strategy – $99 per month. Please do not hesitate to email me with any questions that you have.

Here it is: the first trade in my new Credit Spread Options Strategy. I will continue to go over the trade in full detail in the Free Weekly Options Report and here on the blog.

Market Mumbo Jumbo

Summary

SPY remains range-bound!

Nothing New Here: Not much has changed over the past few weeks – range-bound trading persists. I appears we could see the markets move sideways for a few more months. Are the summer doldrums already upon us? How long can SPY stay in this range of roughly $126 to $137? The question is, while I continue trading extremes in the HPMR strategy , how can I take advantage of the range bound movement at the same time. You guessed it – a credit spread! I will discuss this further in Weekly Options Report.

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Options Strategy Indicator – Overbought / Oversold Extremes

High Probability, Mean-Reversion Options Indicator

High Probability, Mean-Reversion Options Indicator