Which Direction Will The Market Choose?

We have been watching the consolidation in the major indexes and this week will give us a good idea of where we will go. So the big question is:  How do I trade today for the most probable payout? 
 
We see the momentum showing signs of a continued climb but since we are at the top of the current range the previous resistance could take hold. On one hand we could buy some calls on index ETFs like QQQ or SPY for July just below the most logical strike price. Let's look at what that looks like in QQQ:
 
As an example, let's look at the NASDAQ:

 

(Continued below)
Turn Your Emotions Into Profitable Trades
  • Page 6: Get definitions to 85 top 'must know' terms
  • Page 17: How to make sure you get out of a trade before it turns south
  • Page 25: The three most popular spread strategies (plus screenshots on how to trade them)
  • Page 40: My #1 tip for mastering options months before other beginners

Click Here for This Free eBook

The range is about 315 to 340 and if we turn that 340 into new support we can expect a jump up to the equivelant of the previous range at about 365. If we took a 360 July 16 call position, the premium is $2.56. That could potentially double if we hit the target of 360.

 

But what if we are wrong? The amazing thing about options is they allow you to create positions called spreads that provide the opportunity to make money if the market goes up or down. With a basic understanding of those spread strategies, you can be ready to cash in on a move in any direction. 

 

(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

As volatility continues to drop, these options get cheaper and cheaper. This makes increases the potential payout if we see a quick move in QQQ. Better yet, it makes setting up a spread even more accesible. 

 

If you are looking for the right option strategy to get the biggest leverage from this current market, 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 great trade ideas and tools.  

 


 

Auto-trading, or any broker or advisor-directed type of trading, is not supported or endorsed by TradeWins. For additional inform
ation on auto-trading, you may visit the SEC's website: All About Auto-Trading, https://www.sec.gov/reportspubs/investor-publications/investorpubsautotradinghtm.html
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.

1. 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 TradeWins Publishing ("TradeWins") a customized or personalized recommendation to buy, sell, hold, or invest in particular financial products. The Services are intended to supplement your own research and analysis.

2. TradeWins' Services are not a solicitation or offer to buy or sell any financial products, and the Services are not intended to provide money management advice or services.

3. Past performance is not necessarily indicative of future results. Trading and investing involve substantial risk. Trading on margin carries a high level of risk, and may not be suitable for all investors. Other than the refund policy detailed elsewhere, TradeWins does not make any guarantee or other promise as to any results that may be obtained from using the Services. No person subscribing for the Services ("Subscriber") should make any investment decision without first consulting his or her own personal financial adviser, broker or consultant. TradeWins disclaims any and all liability in the event anything contained in the Services proves to be inaccurate, incomplete or unreliable, or results in any investment or other loss by a Subscriber.

4. 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.

5. All investments carry risk and all trading decisions made by a person remain the responsibility of that person. There is no guarantee that systems, indicators, or trading signals will result in profits or that they will not produce losses. Subscribers should fully understand all risks associated with any kind of trading or investing before engaging in such activities.

6. 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. Simulated trading services in general are also designed with the benefit of hindsight, which may not be relevant to actual trading. In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk of actual trading. TradeWins makes no representations or warranties that any account will or is likely to achieve profits similar to those shown.

7. No representation is being made that you will achieve profits or the same results as any person providing 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 experienced losses.

8. The author experiences are not typical. The author is an experienced investor and your results will vary depending on risk tolerance, amount of risk capital utilized, size of trading position and other factors. Certain Subscribers may modify the author methods, or modify or ignore the rules or risk parameters, and any such actions are taken entirely at the Subscriber's own election and for the Subscriber's own risk.

 

 

You are currently subscribed to mwd as: phanhoa1821960.trader@blogger.com.
Add support@marketwealthdaily.com to your email address book to ensure delivery.
Forward to a Friend | Manage Subscription | Subscribe | Unsubscribe | Snooze
                                 

No comments:

Post a Comment