Successful option trading strategies. As with anything, people who are wildly successful trading options continue to learn and grow each and every month. They put together a great trading plan, have solid risk management and learn about new strategies. Watch Me Place REAL Money, LIVE Option Trades: Here at Option Alpha we "walk the.

Successful option trading strategies

Nifty Options Selling -100% Successful method of trading (Monthly Income)

Successful option trading strategies. How to make money trading options, when many people are losing money buying and selling puts and calls. Successful options traders are incredibly disciplined. They tend to follow what I call the If you cannot bring yourself to take profits on a winner, at least initiate a spread strategy. Say you have.

Successful option trading strategies

Weekly options have become a stalwart among options traders. Unfortunately, but predictable, most traders use them for pure speculation. As most of you know, I mostly deal with high-probability options selling strategies. So, the benefit of having a new and growing market of speculators is that we have the ability to take the other side of their trade.

I like to use the casino analogy. The speculators buyers of options are the gamblers and we sellers of options are the casino. And as well all know, over the long-term, the casino always wins.

So far, my statistical approach to weekly options has worked well. I start out by defining my basket of stocks. And I use it over various timeframes 2 , 3 and 5. This gives me a more accurate picture as to just how overbought or oversold SPY is during the short-term. A reading above 80 means the asset is overbought, below 20 means the asset is oversold. Just like my other high-probability strategies I will only make trades that make sense.

As always, I allow trades to come to me and not force a trade just for the sake of making a trade. I know this may sound obvious, but other services offer trades because they promise a specific number of trades on a weekly or monthly basis.

In our case, we would use a bear call spread. A bear call spread works best when the market moves lower, but also works in a flat to slightly higher market. Remember, most of the traders using weeklys are speculators aiming for the fences. They want to take a small investment and make exponential returns. If I lower my probability of success I can bring in even more premium, thereby increasing my return.

It truly depends on how much risk you are willing to take. Take the Apr14 strike. It has a probability of success Prob. And easily within the reach of regular investors. You can learn all about this safe, simple strategy and the next three trades shaping up right now by clicking this link here.

Slay your own dragon Go here now. So how do I use weekly options? Once an extreme reading hits I make a trade. And this is where the casino analogy really comes into play. Take a look at the options chain below. I want to focus on the percentages in the far left column. Published by Wyatt Investment Research at www. Ian Wyatt Dividend Stocks. Copyright Wyatt Invesment Research.


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