Boost Your Trading Profits with Precision Market Timing
Wednesday, May 11th at 4:30PM EST
Hello, My name’s Lee Gettess. In addition to trading my own account, I’ve spent the past 30+ years developing proprietary systems for private traders, two large public funds, and one of the ten largest banks in North America.
SPECIAL NOTICE: A free copy of Lee Gettess’ Precision Market Timing book, a $149 value, will be given to five lucky winners after the webinar!
ADDED BONUS: Subscribers to Lee’s Precision Trade Alerts signals for
individual stocks will also receive a FREE 30-day subscription to his
O-Force Trading System for Index ETF trading!
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.
We learned that purchasing a call option on a stock moving up in price can produce enormous profits and allows us to harness the tremendous leverage provided from option investing. Stocks that are in a confirmed price uptrend with the 50-Day EMA above the 100-Day EMA are excellent candidates for call option purchases.
Once you select a stock and decide to purchase an option your next challenge is selecting an option time length and strike price. For many stocks there are literally hundreds of options to choose from. For example, there are hundreds of options available for stocks such as Apple. How does an investor effectively choose an option time length and strike price with so many choices?
While stock selection is important for successful option investing, in my experience selecting an option's time length and strike price is just as important as selecting the stock itself.
Option Time Length and Strike Price Selection is Just as Important as Stock Selection
I like to use a 3-step selection process to select options with a high probability of success.
Path to High Accuracy Option Investing
Step 1 – Use 50/100-Day EMA System and Trend Confirmation Indicators to Select a Stock Moving Up In Price
Step 2 – Use Historical Price Data to Select Option Time Length with High Accuracy
Step 3 – Purchase In-The-Money Options with Low Time Value
I like to use historical price data to help select the time length of the option. Historical price data allows me to know the percentage of times a stock increased in price between option expiration dates. This helps me select an option time length (expiration date) that has a high probability of success.
I also select an option with an in-the-money strike price. A call option is in-the-money if the strike price is lower than the current stock price. For example, if Apple stock is trading at 250 then the 200-Strike call option would be in-the-money.
In-the-Money options have less time value and more intrinsic value than out-of-the-money options. As you will discover shortly, purchasing an in-the-money option as a much higher probability of success than purchasing an out-of-the-money option. The goal of the 3-Step Option Selection Process is to enable you to become a successful options investor by helping you understand the time length and strike price selection process that results in high accuracy and more profitable option investing.
Option Cycles
There are three different option expiration cycles. The first expiration cycle is the January, April, July and October expirations. The second cycle is the February, May, August and November expirations and the third cycle is the March, June, September and December expirations. I studied stock price data on a monthly option expiration day in order to determine how far out or which expiration month I should use when I decide to purchase a call option on a stock.
For example, Apple symbol AAPL qualifies as a MVP Option Strategy stock. Apple options use the January, April, July and October expiration cycle. The Apple January, April, July and October options usually become available to trade 6 months prior to expiration. Like most other options, Apple also trades monthly options for all 12 months of the year but the monthly options that are not in the Apple January, April, July and October expiration cycles do not become available to trade until 2 months prior to the monthly expiration.
For example, Apple February options become available for trading two months prior in December and Apple March options become available in January. There are also LEAPS options available for Apple which are long term options. LEAPS options become available for trading one to two years prior to expiration.
PLEASE READ: Auto-trading, or any broker or advisor-directed type of trading, is not supported or endorsed by TradeWins. For additional information on auto-trading, you may visit the SEC’s website: All About Auto-Trading, TradeWins does not recommend or refer subscribers to broker-dealers. You should perform your own due diligence with respect to satisfactory broker-dealers and whether to open a brokerage account. You should always consult with your own professional advisers regarding equities and options on equities trading.
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