Profiting in Down Markets - Part II
By: Chuck Hughes
In this video the Optioneering Team will explore a bearish option strategy they utilized successfully during the last two bear markets.
In this video the Team will discuss:
- The best stocks/ETFs to short
- A reliable trend following system for selecting winning bearish trades
- How to confirm that a stock is a good shorting opportunity
- Limiting risk on bearish trades to the cost of the trade
Don’t miss this opportunity to learn how to convert down markets into profit opportunities.
In this video the Hughes Optioneering Team will explore the three step trade selection process they use to select call option trades with a high probability of success.
1) Select a stock on an EMA ‘buy’ signal
2) Select a low risk entry point on a price pullback
3) Select an option strike price that only requires a 1% price move in the underlying stock to break even and start profiting on our option trade
Call options are derivatives that derive their value from the price of the underlying stock. Call option profits are determined by the price movement of the underlying stock.
Step 1 helps us profit by purchasing call options on stocks moving up in price. This allows us to harness the tremendous leverage that options provide.
Steps 2 and 3 are especially important during volatile price moves as they allow you to hold on to your call option trade longer before being stopped out. This helps you to better profit during market volatility.
Learn how this 3 step trade selection process has allowed us to maintain our overall goal of achieving a better than 3 to 1 Profit to Loss Ratio.
My name's Chuck Hughes and I'm pleased to say my trading services have been consistently profitable for more than 20 years... and I've won 10 highly competitive Trading Championships with audited real time annual returns of 220%, 300%, even 330%.
And now, with your permission, I'm going to send YOU my own personal Trade of the Day absolutely free!
Every day the market is open, check your inbox for my action-ready trade analysis including...
- Insightful commentary on Chuck's top stock or ETF pick of the day
- Price charts with circles & arrows describing why a big move is likely
- An exciting option play with profit potential calculated to the penny
- Look-back analysis to see how previous trades are coming along
- And much, much more
Click here and receive your first trade tomorrow!
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The information provided by the newsletters, trading, training and educational products related to various markets (collectively referred to as the “Services”) is not customized or personalized to any particular risk profile or tolerance. Nor is the information published by Legacy Publishing, LLC (“Legacy”) a customized or personalized recommendation to buy, sell, hold, or invest in particular financial products. Past performance is not necessarily indicative of future results. Trading and investing involve substantial risk and is not appropriate for everyone. The actual profit results presented here may vary with the actual profit results presented in other Legacy Publishing LLC publications due to the different strategies and time frames presented in other publications. Trading on margin carries a high level of risk, and may not be suitable for all investors. Other than the refund policy detailed elsewhere, Legacy does not make any guarantee or other promise as to any results that may be obtained from using the Services. Legacy disclaims any and all liability for any investment or trading loss sustained by a subscriber. You should trade or invest only “risk capital” – money you can afford to lose. Trading stocks and stock options involves high risk and you can lose the entire principal amount invested or more. There is no guarantee that systems, indicators, or trading signals will result in profits or that they will not produce losses.
Some profit examples are based on hypothetical or simulated trading. This means the trades are not actual trades and instead are hypothetical trades based on real market prices at the time the recommendation is disseminated. No actual money is invested, nor are any trades executed. Hypothetical or simulated performance is not necessarily indicative of future results. Hypothetical performance results have many inherent limitations, some of which are described below. Also, the hypothetical results do not include the costs of subscriptions, commissions, or other fees. Because the trades underlying these examples have not actually been executed, the results may understate or overstate the impact of certain market factors, such as lack of liquidity. Legacy makes no representations or warranties that any account will or is likely to achieve profits similar to those shown. No representation is being made that you will achieve profits or the same results as any person providing a testimonial. No representation is being made that any person providing a testimonial is likely to continue to experience profitable trading after the date on which the testimonial was provided, and in fact the person providing the testimonial may have subsequently experienced losses. The cost basis for some of the options in a portfolio may be reduced by rolling over profits at option expiration which is one of the Hughes Optioneering Trade Management Rules. Some income figures presented represent the total amount of option premium collected during the referenced period. Actual profits were less. Open trade profit results may have increased or decreased when the trades were closed out. Chuck Hughes' experiences are not typical. Chuck Hughes is an experienced investor and your results will vary depending on risk tolerance, amount of risk capital utilized, size of trading position, willingness to follow the rules and other factors.