BIGTRENDS

Finding Big Trends in Trading Stocks & OptionsMay 11, 2010

Price Headley, CFA, CMT

BIGTRENDS

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BIGTRENDS

Dow Diamonds (DIA) Daily Chart

1-800-BigTrendsFor my free report on Percent R, Acceleration Bands & more – go to: www.bigtrends.com/favorite-indicators

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Williams %R - The BigTrends Way: Trading the Extremes to Find Major Trends

Williams %R is similar to Stochastics in measuring overbought & oversold levels – the traditional scale is from 0 down to -100, I use a +100 down to 0 scale.

While most use a 10 or 14 bar setting, I use a 30-bar setting – smoother but still responsive

BULL TRENDS: Look for “overbought” reading above 80, followed by a close above that bar’s high

BEAR TRENDS: Look for “oversold” reading below 20, followed by a close below that bar’s low

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For my free report on Percent R, Acceleration Bands & more – go to: www.bigtrends.com/favorite-indicators

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Options Shark: Monsanto (MON) Daily Chart

1-800-BigTrendsFor my free report on Percent R, Acceleration Bands & more – go to: www.bigtrends.com/favorite-indicators

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Options Shark: Amazon (AMZN) Daily Chart

1-800-BigTrendsFor my free report on Percent R, Acceleration Bands & more – go to: www.bigtrends.com/favorite-indicators

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In The Moneys as a Stock Substitute

Buy In the Money Options to Get Rid of Time Value => Focus on Intrinsic

Sell 100 XYZ shares @ 56.60 = $5660

Buy 1 July 60 PUT @ 4.70 = $ 470XYZ goes to 50 before mid-July: Short Shares gain $660, or 11.7% ITMs gain $530, or 112%

For my free report on Percent R, Acceleration Bands & more – go to: www.bigtrends.com/favorite-indicators

BIGTRENDS

Options Shark: State Street (STT) Daily Chart

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Options Shark: Newmont Mining (NEM) Daily Chart

1-800-BigTrendsFor my free report on Percent R, Acceleration Bands & more – go to: www.bigtrends.com/favorite-indicators

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Gold (GLD) Daily Chart

For my free report on Percent R, Acceleration Bands & more – go to: www.bigtrends.com/favorite-indicators

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The Concept of Efficiency

Answer Poll Question: On which of these trends would you rather buy an “At The Money” call position?

For my free report on Percent R, Acceleration Bands & more – go to: www.bigtrends.com/favorite-indicators

BIGTRENDS

Options Shark: Wynn Resorts (WYNN) Daily Chart

1-800-BigTrendsFor my free report on Percent R, Acceleration Bands & more – go to: www.bigtrends.com/favorite-indicators

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Keys to be an Options Shark

Key Elements of my daily Options Shark service

Buy In the Money, or keep a time stop of 5 days on out of the moneys if not winning

Usually buy 2nd month options

Target 100% on first half

Shoot for 300% or more on rest when we can

Invest 5-10% per trade of capital allocated

Seek to keep losses at -30% or les

For my free report on Percent R, Acceleration Bands & more – go to: www.bigtrends.com/favorite-indicators

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Options Shark: Yahoo (YHOO) Daily Chart

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Options Shark: Wellpoint (WLP) Daily Chart

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For my free report on Percent R, Acceleration Bands & more – go to: www.bigtrends.com/favorite-indicators