How To Trade The New Highs

The progress on the infrastructure plan has lifted the markets and added momentum to the climb. When we see this kind of momentum it is a great opportunity to get in on the pay out. 
 
A couple weeks ago we targeted a call option on the QQQ with a strike of 336 with a premium of just $7.65. Just about a week later that offered a quick 25% gain or the chance to hold on. Currently that call is over $17 for about 120% gain. 
 
Now we are looking at a similar opportunity as the S&P takes off. 
 
Here is a chart of the SPY, the ETF that tracks the S&P:

 

(Continued below)
Make Money On The Climb Up, AND THE FALL!!
Options spreads are a great way to leverage a market that is moving and in transition. Even when markets are making record highs, they could be about to drop. Setting up trades that grab profits no matter which way the an index swings is an ideal trade for this current climate.  
 
Get the three most popular spread strategies
(plus screenshots on how to trade them)
 
Plus, I include my #1 tip for mastering options months before other beginners...

(to see the chart on our blog, click here)

The range has recently been between 405 and 425. If we get a break out, this could turn that previous resistance at 425 into new support and push even higher. 

 

What is the best price to pay for an option to the upside? If we look at price and timeframe we can start to see some bargains. The Aug 430 call is at $5.66 this morning. It is great to have that time for a nice upside move to play out. But if we look at the July 430 calls, we see a big difference. Since they offer less time for that move to happen they are cheaper, at about $2.80.

 

Is the momentum enough to make the July calls the choice? This is where looking at the probability can really give you the answer.  

 

(more below)

How to Put the ODDS in Your Favor

Could you use more money for the bills?

For vacations?

For more peace of mind?

Many of the strategies out there preach an aggressive, risky way to trade options.My  strategies get up to a 93.6% win rate over a 16 year study...

 

There's no risk to start learning.

Get A Free Book That Show You How HERE

This doesn't have to be a guessing game. There are clear differences between those two trades and one is the smarter choice for you. 

 

If you are looking for the right option strategy to with the highest probability of giving you a profit, the pro to go to is Don Fishback. 

 

I would grab his book "Your Quick-Start Guide to Options Success" as well. It explains ideal option strategies--from spreads, to strangles, to straddles--in the most simple language I have seen. Download and don't miss this opportunity. 

 

 

Keep learning and trade wisely, 

 

John Boyer

Editor

Market Wealth Daily

 

P.S. Head over to www.marketwealthdaily.com for more articles and education.  

 


 

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