I want to preface this information by saying there is in Fact, a Guarantee in the Options Market.
During my career as a trader I discovered several important factors that are consistent with stocks that go higher in price and essentially the analysis goes back to Economics 101, Supply and Demand. Supply and Demand is the most fundamental concept of economics and it is the backbone of a market economy.
While it sounds simple enough that when a stock is in demand it’s price will go higher, and that can be seen via a price chart of a higher price over time, however there has never been a tool that can see Factually ahead, that is, if the price will In Fact continue higher, let’s say for a month or two. Imagine that. If anyone knew today that the price of a stock would in Fact be higher in a month, becoming a Billionaire would be as easy. Now in no way shape or form am I saying I have developed a Crystal Ball that sees into the future price of a stock because I don’t have one. However, I will say I developed a few very effective analytical tools leading to a specific Methodology producing exceptional profits consistently over the last 3+ years producing profits in 24 of the 25 expirations dates (please click on Performance below). Winning 96.00% of the time by any measurement is incredible. And these are real not hypothetical's.
Please continue reading this very important information that should change the way you ever thought about making money in the market.
It occurred to me by measuring the increases in the buying volume (Demand) versus the selling volume (Supply) one could determine the price direction of a stock when accumulation of shares has overwhelmed the distribution of shares and with this study I developed my own analytical tool I call High Directional Price Momentum or HDPM.
HDPM starts the Methodology resulting with those industry groups possessing high buying demand. I then use HDPM for selecting stocks within those specific industries resulting with a list of stocks possessing a high probability of continued upward price momentum over the next 4-7 weeks. But what if the analysis turns out to be incorrect and the stocks’ price falls. Can there be a Fail Safe in case the analysis fails (nothing is perfect)? Can the Methodology still make a profit ?
Please continue reading because this is the important part for profiting using the Methodology.
The next step in the process is the critical part and most important factor for profitability, which is to uncover over-priced options using an analytical tool I call Comparative Volatility Analysis, or CVA, and this is the Secret Tool if there ever was one. 96% of the trades for the expiration dates have produced a profit. Real trades issued to our members, not hypothetical's.
Did you know there is a Guaranteed Fact about option pricing, how an option loses it's value, the use of Comparative Volatility Analysis, and how when all this comes together your profits could be greater, more consistent than ever before, and over time could create wealth ?
FACT: Out of the Money options are 100% Time Value, TV, which by definition will decay to zero at expiration. The general rule that it will lose ⅓ of its value during the first half of its life and ⅔ in the second half. As an option moves closer to expiry, it’s TV is rapidly decaying to Zero. This means the guaranteed fact is that the TV will go to $0.00 by expiration.
So what is the strategy ? How does this translate into money ?
The trading solution is to sell an option that is Out of the Money, Over-Priced, and it’s underlying stock is predicted by High Directional Price Momentum to continue higher in price over the next several weeks.
This is a powerful trading strategy.................Think seriously about this.
There is a Guarantee in the Option’s Market. Time Value, TV, which by definition will decay to zero at expiration, and by selling an over-priced option before it goes to zero makes this a powerful method to make money in the options market.
66.67% of the time You Win. Automatically
The price of a stock can do only 3 things. Go Up, Go Down, Stay the Same.
With a Put Spread, if the stocks price goes up from the day the option spread is executed, you win.
If the stocks price stays the same from the day the option spread is executed, you win.
If the stocks price even goes down from the day the option spread is executed, you could still win.
(usually not more than 10% down in prices).
The price of a stock can only do 3 things, go up, go down, or stay the same. We have 2 of the 3 on our side right off the bat which is 66.67% chance of winning and even if the stock price goes down from the day the trade is executed, many times we still win. WHY? Because the option positions are out of the money and over-priced which helps in the event price goes in the direction we don’t want it to.
Steady profits is the backbone of our success. We keep losses
to a minimum and most every position expires worthless which
is a tremendous asset for everyone. It's like getting money for
free and is the key to our incredible success with this strategy.
This program recommends credit spreads using the Methodology described above.
* It’s IRA Compatible.
* You don’t need a lot of money to start, many have started with $5,000.00 or less.
* Auto Trade available with specified brokers viewed here: http://takingprofits.com/AutoTrade.html
I want You to Become a Member to this Exclusive Club so we have put together a Deep Discount in the Membership Price AND if need be we can arrange a payment plan for you.
So please if you have questions let me know and if you’re ready to go then go to the order page here http://www.services.takingprofits.com/
If you are not using Extrinsic Value to your Favor You better start to Re-Think how You Trade Options
Option Time Premium Decays to Zero by expiration and using this part of the options pricing to your advantage could give You Distinct Profit Advantages over and above buying options.
Stock options are a wasting asset. From the day of purchase, their value goes down if the stock stays flat. This is called the Time Premium Decay. Out of the money options are 100% time premium and this is also known as the option’s Extrinsic Value
In option price analysis called "Greeks", Theta measures the dollar decline in the price of an option for every day that passes. If an option has a $.10 Theta, the stock-option would lose a dime a day if the stock stayed flat. Option sellers take advantage of accelerated time decay focusing on front month options.
Take a look at the chart below of option time decay. In the first 3 months, the time premium decays only 10%. In the last 3 months, time premium decayed 60% with most of the decay coming in the last few weeks.
This portion of time decay is the piece of most interest. With weekly options introduced earlier this year for the SPY which is the exchange-traded fund that holds all of the S&P 500 Index stocks, spread positions can be entered each week with the objective of profiting from those options that have excessive time premium. decay. For an example of one type of strategy called a Put Vertical would be to sell an option at a strike price close to the price of the underlying stock and simultaneously buy an option with a higher strike price, thereby generating a CREDIT into your account. This means you receive money when the trade is initially executed.
The Price of a stock can only do three things:Go Up, Go Down, Stay the Same. Automatically 2 of the 3 movements are on our side. That's 66.67% right off the bat! Even if the stocks price goes adverse to the expected direction there is still a chance the position will make money.
These are fantastic odds. Now Trader have a built in Advantage.
During the final days of an options' life, the extrinsic or time premium evaporates very rapidly.
This is a thing of pure beauty!