Option Strangle Magic » Personal Finance http://optionstrangle.net Balancing out-of-the-money options for potential large gain Sat, 31 Jul 2010 15:56:36 +0000 http://wordpress.org/?v=2.8.4 en hourly 1 Make 20% Yearly With Index Options Trading At No Risk http://optionstrangle.net/make-20-yearly-with-index-options-trading-at-no-risk http://optionstrangle.net/make-20-yearly-with-index-options-trading-at-no-risk#comments Sat, 19 Dec 2009 21:11:41 +0000 admin http://optionstrangle.net/make-20-yearly-with-index-options-trading-at-no-risk How would you like to get 20-25% a year on your investment money without risk. Sounds crazy would you say. What If I am telling you I have been making that kind of money in the past 4 years without one single bad trade.
On top of that what would you say if I am telling you that my investment method generates regular monthly revenue no matter which direction the stock market is taking. In fact when the market goes down sharply we make more money without risk?
Who would believe something like that ? Well think again. My name is Richard Bastien and I am a specialist in trading major Indexes like SP500 Dow and Russell 2000. I don’t trade individual stocks. I trade only instruments related to Sp500 Dow and Russell 2000.
I created my proprietary Index Trading System many years ago and tried to improve it along the years. You can find a lot of information on this index trading system on my site (see below). I worked very hard to be able to handle very well bad market conditions as well as normal market conditions.
I realized 5 years ago that I could use this system to generate regular monthly revenues using options on SP500 and Russell 2000. We can also use options on Sp100 and NASDAQ 100. Instead of buying Calls (Buy option) to play the market Up or buy Puts(sale option) to play the market down, why not sell Uncovered Puts under the current market position at a safe strike price and collect premiums month after month.
May sound weird but here is some examples of the past so you will understand better.
At the end of July I recommended 2 trades on Sp500 and Russell 2000. At that time SP500 index was trading at around 1500 and Russell 2000 at 810. I then recommended to sell Puts(sell options) on SP500 September 1350(strike price) at 7$ and sell puts on Russell 2000 September 710 at 6.30$.
On September 21st each contract sold for Sp500 carried profit of 700$ and 630$ for each Russell 2000 contract. Of course you need to have about 13000$ in your account for Sp500 and about 8000$ for Russell 2000 because selling uncovered Puts requires margin.
I publish on my site Options Trades page the result of several portfolios size like 10,000$ 25,000$, 50,000$ and 100,000$. All portfolios carried yielding of 20% in 10 months only. The trades were called in real time.
You can actually play this system with less than 10,000$ using what we call spreads. If we take our same example we would sell an SP500 September 1350 at 7.00 and Buy a September put 1340 at 5.50 for a net credit of 150$. This way you need only about 1200$ cash in your account.
I have a special method to determine the right strike price on each market so we never get caught in a sudden bear market. I developed my own software to graph each index and analyze carefully where we stand in each market daily. In the latest bear market last August-September we made big money while most of the traders lost. Imagine how easy it is when the market is sideways or up.
So don’t wait any further and visit the following pages on my site:
Options trading page
trading signals page
Index Trading System page
Main page
If any questions feel free to email me (see contact us page on the site) or even call me directly.
Thanks
Richard Bastien

]]> http://optionstrangle.net/make-20-yearly-with-index-options-trading-at-no-risk/feed 0 What is Day Trading? http://optionstrangle.net/what-is-day-trading http://optionstrangle.net/what-is-day-trading#comments Sun, 13 Dec 2009 11:43:43 +0000 admin http://optionstrangle.net/what-is-day-trading Day trading is the practice of buying and selling financial instruments, such as stocks, stock options, currencies, and futures contracts, within the same day such that your positions are usually closed before the end of the day.

 

Day trading used to be the sole realm of professional investors.  In fact, many day traders work for banks or investment firms.  Advances in technology and the Internet, however, have allowed even amateur traders to day trading. 

 

Day traders often borrow money to trade.  This leveraging allows for a high potential rate of return and large profits.  Some day traders earn millions of dollars a year.  However, day trading can also be extremely risky.  Without the proper skills and tools, day traders can just as easily and quickly lose money. 

 

Although collectively called day trading, there are several different styles of day trading.  Some trading styles include:

 

Momentum Trading

 

Momentum trading is a strategy in which one believes that stocks, or other financial instruments, move with a momentum or trend.  Thus, stocks that have been rising are assumed to continue to rise.  Likewise, stocks that are falling will continue to fall.  A momentum trader thus buys stocks that are rising and short sells ones that are falling.

 

Contrarian Trading

 

Contrarian Trading sharply contrasts momentum trading.  Contrarian traders believe that stocks that have been rising will reverse and fall.  The contrarian trader buys stocks that have been falling and short sells stocks that have been rising.

 

Range Trading

 

Day traders who range trade look for stocks that have been consistently trading within a specific range.  These stocks rise after hitting a “support” price and fall after hitting a “resistance” price.  A range trader therefore buys stocks that are near the support price and short-sells stocks that are near the resistance price. 

 

For more information on day trading, check out DayTradingModels.com

 

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