3 Options Trading Strategies
Options trading for beginners or new traders can be hard at times. In this webinar we discuss 3 options trading strategies that can be applied in the stock market.
The first options trading strategy we discuss is extreme highs or extreme lower on a stock. This situation can create a mis-pricing situation on call options or put options, therefore, creating an opportunity for a trade. When a stock like CHK reached an all time low the call options were not expected to rise but they did with extreme profit.
On the upside, when a stock like JNJ is overbought it can take just a little bad news to create a sell off on the stock and allow the put options to be purchased for little premium.
The second options trading strategy we discuss is momentum trading with options. Simply buying a call or buying a put to make a trading decision on a stock. The ,000 Priceline trade was made using this strategy. You want to look at the direction and the momentum of the S&P500 before placing a directional options trade. If you can determine ahead of time potential price targets for a stock it helps to then structure the options trade. Many traders cannot time market movements which hurts their options trading profits. We believe that you can determine market turning points with a high degree of accuracy.
The other options trading strategy we use is an event driven trading strategy. When a stock has an earnings event, an upgrade a downgrade or some type of news event it creates volatility in the stock.
The other concept covered is volatility in the stock market. Volatility is perceived to be bad for investors when in fact it can be a great tool if used properly. Volatility in stocks creates an opportunity to pick up calls and puts at better prices, it can also increase the asking price for a put or call if there is more fear in the market.
To learn more about trading options you can attend a Shark Sessions trading workshop:
To learn more about how to trade options the Remora Options Trading course. The Remora Options Trading course is a top tier options trading program that covers some of the following:
*Options Trading 101
*0 Risk Per Trade
*Determining an Options Trading Set up
*An overview on 0,000 in Options Profits
& Much more
To learn more about Remora Options you can click below:
Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors. Past Performance is not indicative of future results. With regard to any testimonials posted on this site, please note that any references to performance depends on each individual’s unique skills, time commitment effort and capital. Individuals sharing their results have not been compensated and any results have not been independently verified. Results may not be typical and individual results may vary.