Option trading blog bull market strategies pdf


It can take years just to get profitable. In the question you addressed the issue of being able to predict the direction of a stock. Expect to spend months reading about technical analysis and money management. Then expect to spend at least two years finding an edge and developing an approach. When that ends, so will the careers of many scalpers until the next major trend.

I believe the better way to trade is to form an opinion and to spend your time on research and analysis as opposed to reacting to every tick and blip on the screen. If you think about the richest traders in the world George Soros and Warren Buffet they did not scalp markets. They did extensive macro research and took long term positions.

If you form an opinion and take a directional stance for at least a week, your returns and risk go up dramatically. There are many other people that will sell you a pipe-dream of riches. I have a systematic approach that has taken me years to develop and there are many years when I exceed my expectations.

Day traders and option traders who have been around the block recognize the quality of my research and rely on it for trading ideas. Since I used your question, you can try a OneOption research report free for a month. This is the easiest business to start and the hardest one to grow.

Anyone with a wallet can pull up a chair. Although many aspire to the trading lifestyle, few are as long term successful as the ads suggest. I applaud you on two specific gems in your article. Thanks for confirming the first 2k is fixed expenses I did it many years ago, and have had moderate success.

I think I will tell them about the 2k and the wallet. As you know, it is anything but easy. I try to teach my systematic approach. It is not the Holy Grail, but over time, hard work is rewarded.

I would not advise starting any option trading program with less than that. I hold a maximum of 10 stocks at one time. Those are excellent returns - congratulations. Make sure to adjust your system to account for changing market conditions. I sense that the 5-year bull market run may be getting tired. They are a handful out of thousands and that is the low end of my bench mark.

Yes, that was a naive response. I will take your advice and I think you are trying just to let people know is not as easy as it might seem. I am very aware of that. I am trying to quit my job and trade but I do have a tutor who has been successfully trading for 10 years, which I think is an advantage and a requirement sort of, to be honest.

Having someone with the scars advice is priceless. I would not consider doing it without his help. Crazy trader adn all you hot shots out there post your statements to back up your claims because I do not believe any of you. Thnx for the post. Take a break and only risk small amounts. What happens to a long put option position if the underlying company goes out of business and trading ceases?

You are able to sell the stock short at the strike price and you buy in your short stock for a penny. Your put trade has maxed out. I can truly appreciate what you are saying about risk and whether or not these returns can be consistently acheived. But, I am curious your opinion on my strategy. I am selling naked puts right now on stock that I dont mind owning if the trade goes against me.

As you know, that means I am collecting the premium up front and then once the trade has moved enough to satisfy my yield requirements I am exiting the trade and not waiting for an expiration that would allow me to keep the entire premium.

Most of my activity occurs in 2 weeks or less. Perfect strategy for this market. The implied volatilites have been at historic highs and the market established support. You will never make more money on this strategy than you have in the last two months. I sense that the 5-year bull market run may be getting tired. They are a handful out of thousands and that is the low end of my bench mark. Yes, that was a naive response. I will take your advice and I think you are trying just to let people know is not as easy as it might seem.

I am very aware of that. I am trying to quit my job and trade but I do have a tutor who has been successfully trading for 10 years, which I think is an advantage and a requirement sort of, to be honest. Having someone with the scars advice is priceless. I would not consider doing it without his help. Crazy trader adn all you hot shots out there post your statements to back up your claims because I do not believe any of you. Thnx for the post.

Take a break and only risk small amounts. What happens to a long put option position if the underlying company goes out of business and trading ceases?

You are able to sell the stock short at the strike price and you buy in your short stock for a penny. Your put trade has maxed out.

I can truly appreciate what you are saying about risk and whether or not these returns can be consistently acheived. But, I am curious your opinion on my strategy. I am selling naked puts right now on stock that I dont mind owning if the trade goes against me. As you know, that means I am collecting the premium up front and then once the trade has moved enough to satisfy my yield requirements I am exiting the trade and not waiting for an expiration that would allow me to keep the entire premium.

Most of my activity occurs in 2 weeks or less. Perfect strategy for this market. The implied volatilites have been at historic highs and the market established support. You will never make more money on this strategy than you have in the last two months. That said, I love it and I have had similar returns in a day period.

The key is to find the right stocks. If the stock breaks major support or the fundamentals change, you have to get out. When the option IVs VIX fall below 30, the easy money will be gone and this strategy will grind out normal returns. Those are great returns and you are using the right strategy at the right time - congratulations. We have been generating similar results in our put writing, but those results will change with the IV dropping.

Please advise where is the best place that I could get this IV info. I trade using IB. Next, they mention selling Puts, please comment whether it is better to do Short Strangle instead of Naked Put one direction.

I am a directional trader and I always have an opinion on direction. This is the blog i have been looking for all along I can learn from all of you. Love your insight Pete,generosity and experience Thanks for the kind words. I am a big fan of naked put writing. You need to pay particular attention to the fundamentals of the stock.

On an unleveraged basis, nake put writing is the same as covered call wiriting. However, there are advantages to writing puts. You can leran more about the course at this link. Hi Neil, As you know, it is anything but easy. Thnx for the comment.

Whatis the ammout I need to make option1 profitable its currently 99 dollars? Thank you for the interest. Hi Rob, Those are excellent returns - congratulations. Only a novice would post a response like this. Here is an article from Active Trader Magazine that might be of interest.

Thanks Pete, that gives me some good things to think about and watch for! Next, they mention selling Puts, please comment whether it is better to do Short Strangle instead of Naked Put one direction The yield is better and also probability is increased with strangles.