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February 8, 2023
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Maximize Your Profits: The Benefits of Trading Option Spreads in Today's Market Climate

Thursday, February 9th at 4:30PM ET

Are you ready to take your options trading to the next level? Then join us for our upcoming webinar, presented by FFR Trading and Trader's Edge featuring renowned option trader and author, Joe Duffy.

With over 25 years of experience trading options, Joe has a wealth of knowledge to share with you. As a prop trader for one of the top banks in the world, he has a proven track record of success. In fact, he was ranked the number one analyst by the prestigious Greenwich Survey and was a three-time, top 10 finisher in the US Trading Championships.

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In this webinar, Joe will share with you the key benefits of trading option spreads and how you can use this powerful tool to maximize your profits and reduce your risk in the options market. Whether you're a seasoned options trader or just starting out, this webinar is designed to help you take your trading to the next level.

Don't miss this opportunity to learn from one of the best in the business. Register now for the webinar and get ready to maximize your profits!

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Tomorrow, you could begin doubling your account every single month starting with one letter.

The letter will come from a 20-year trading professional named Ian Cooper. He says, “In 2022, following my trades you would be doubling even tripling your account some months. Let me show you how.”

He will show you exactly what to do... and he’ll give you the blueprint for just $1.

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Using the Open to Find the Day's Trend
by George Angell

The more information you can gain from a market open, the better prepared you will be to make intelligent trading decisions during the day. Often, the open will provide a very valuable clue as to the day's trend. Here, the indicators will be time and price. Put another way, is there sufficient volatility to suggest a genuine trend day? Or does the price action suggest a market which will simply meander? The answers to these questions are vital because they will determine whether you should be an aggressive trend follower or whether you should simply fade the trend.

How do you tell?

The key is early volatility. Does the market want to get somewhere in a hurry? Remember, you are monitoring both time and price. First, concern yourself with the question: does the market want to trend? Second, ask yourself if it does, in what direction? Here's a general rule (no rule, remember, is 100 percent accurate), taking into account both time and price:

If the S&P futures moves in excess of 100 points in the first 15 minutes of trading, following the open, chances favor a trend day. If the futures do not move in excess of 100 points within that time period, chances favor a non-trending day.

Note that we are considering both time and price. The thinking here is that a quiet opening often means a quiet day. A non-trending day suggests one kind of trading strategy and a trending day another. On a non-trending day, you can establish the support and resistance parameters and trade against them, selling against the resistance and buying against the support. On a trending day, you must reverse the strategy 180 degrees, buying strength and selling weakness. You might decide to leave non-trending days alone on the theory that the potential profits do not warrant the risks.

Obviously, this is a very simple way to approach the market. We all know that some "quiet" days turn into barnburners, and that dramatics on the open occasionally give way to the doldrums in the afternoon. But if you keep your eyes on the hidden clues, you should be able to ferret out the best opportunities.

Some days, of course, are much easier to trade than others. The real tricky days present the real challenge. Since you never really know what the market will bring, it is best to wait at least ten to twenty minutes prior to making your first trade. By then, hopefully, you will have some important information that provides a clue as to direction.

What kind of information? The range, the momentum, tick volume, support, resistance – and so on. The notion of time and price suggests another consideration. That is, if, say, the market is going higher, it will probably trade in a certain stair-step fashion – up, a little back, up again, and so on. The point is, certain things should happen in a rising market which are consistent with that type of market action. Let's consider an analogy. If a train traveling from Boston to New York takes approximately five hours to complete its journey, then the twelve noon train leaving Boston should arrive at its destination in New York at approximately five o'clock in the afternoon. If the train is five or ten minutes late or early it is no big thing. But if the same train is four hours off schedule, something is wrong. It is the same with the market. Certain price objectives should be met if the market is going higher.

Let me give you an example. The market was trading between 455.00 and 456.00 on a day when I anticipated higher prices. In the early going, it traded back and forth between the support and resistance and we were reaching the point when it should go higher. On a break to 455.50, I bought the S&P's. I was right and it went up into new high ground.

I was with a client that day and he asked me, "How did you know to buy it there?"

He added that he wanted to see it trade back at the support at 455.00. I realized it was faulty thinking.

If the market was any good, I explained, it was time for it to rise. Had the trade gone negative on me, I would have sold out immediately. Both time and price had reached the critical level. It either had to go higher then or the entire scenario had to be thrown out. I was able to sell them at a nice profit.

That is why you want to be in there early in the day when the trend is about to emerge. If you don't know what to look for, you will either miss the move or you will be forced to chase the market. I knew what to look for and I found it.

 
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