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Trading Options
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Currently, there are options available for nearly 3,000 stocks. Every month during "expiration" weekend (follows 3rd Friday of the month), we perform a 1-yr, 2-yrs, and 3-yrs Monthly Trading Range (MTR) research and select companies with a substantial interval shift potential. When stock price goes up or down over a long-term period, it is rarely a straight line, but most often a series of cycles. Here is an example of stock price behavior of Amazon.com, Inc (AMZN) for 2005, provided by Yahoo!:
Empirical evidence indicates that often, the start and the end of such cycles are uniquely expressed by certain criterions. We monitor and research the price behavior of roughly 2,700 stocks, trying to identify opportunities and our strategy employs trading stock options to make a profit. With analysis and strategy based on statistical laws of probability and common sense, we can make a reasonable profit; with little chance to lose a lot very fast. The main concerns associated with trading options include:
· An option is
a wasting asset,
· You may still suffer a loss even if your view on the underlying stock
is correct,
· As an option seller, you potentially face unlimited loss,
· The leverage inherent in options means you can suffer large losses
in percentage terms
Our strategy works because it is based on sound portfolio, behavior and risk management. And while the instrument alone, an option can be volatile; we form our portfolio in a way that it is neutral to the direction of underlying stock movement. Our strategy is based on the idea to shift the strike prices of a put and a call as far as possible, by trading in the time value of a straddle for intrinsic value between strike prices.
You are cordially invited to our Delta Interval Advanced Seminar, held on weekends, from 9 am to 5:30pm. Please register today for this potentially life-changing event here.