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http://www.premiertraderuniversity.com/freeoptionsreversal -- Free Options Trading System One of the things I love most about using a powerful options trading strategy is the incredible flexibility that it gives me. If you are like me then you either have financial TV or radio on throughout the day. This means we are flooded with news and new trade ideas constantly. This can lead to big profits as long as you have an options trading strategy in place that gives you exact entry and exit points.
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One of the things that is great about using a powerful options trading strategy is the
incredible flexibility that it gives.
We are flooded with news and new
trade ideas constantly.
This can lead to big profits as long as you have an options trading strategy in
place that gives you exact entry and exit points. This will prevent you from
taking trades blindly and instead provide you with high probability
trades.
Let’s use the latest Middle East crisis as an example. We all know that during
the month of June 2014 fears of another conflict in Iraq caused some large swings in the price of Crude Oil.
Turn on CNBC or Bloomberg and you heard endless stories talk about how the conflict
could affect energy prices and the stock market as a whole.
So how does one profit from this? The first way would be to trade the Crude Oil futures contract. The problem with this approach is how expensive these
futures contracts are.
Not many traders have the capital to hold a position for any length of time.
Instead, we can use a basic options strategy to profit.
A second way to profit from the change in Crude Oil prices is to use stock options. One of the products that students of Netpicks Options Mastery trade all the time is USO
which is the United States Oil Fund.
It is an ETF that tracks the price of Crude Oil. We used this product to
play both the upside and downside in the price of Crude Oil during the
month of June.
We took two trades and they both ended up winners. Our Active Swing
Trader options trading system identified the exact entry and exit
points on both trades.
You can get a full video recap of these USO trades at this link.
http://is.gd/usotrade
The first trade came on 6/4 and our Active Swing Trader options trading
system gave us an entry point at $37.87. Instead of buying the shares of stock we decided to buy Call Options.
We chose the June 37 Call options and paid $1.05 for each contract which
gave us control of 100 shares of USO at $37 per share until June expiration.
This took a total of $105 for each contract that was purchased. Our
system gave us a target of $38.79 and was hit on 6/12. We sold out of our
call options for $1.83 giving us a profit of $78 per contract or a 74% return on
our money in 8 days.
The second USO trade came on 6/30 and this time is was a play on a
pullback in the price of crude oil.
All you had to do was track the Active Swing Trader system which signaled to
go short at $38.65.
Instead of shorting the shares of stock students bought Put Options.
The July 39.5 Puts for $1.02 or $102 per contract were purchased. This trade gave control of 100 shares of USO at $39.50 until July expiration.
The system gave a target at 37.73 which was hit on 7/10. Students sold
out of the Puts options at $1.86 which gave a total profit of $84 or and 82%
return.
Using the Active Swing Trader Options Trading Strategy allowed us to take
advantage of the news to book profits from the changes in the price of Crude Oil.
We were able to do this with a maximum risk of around a hundred
dollars per contract making it perfect for trader of all account sizes.
If you do have access to more capital all you need to do is add on more
contracts to the trades.
The options on USO are very liquid and can be traded with multiple contracts
without any issues.
We have taken advantage of a powerful Options trading system like
the Active Swing Trader to book profits on the price of a commodity.
We aren’t limited to trading individual equities like Apple or Google. Trading options allows us to profit on stocks,
futures, commodities, currencies, and even bonds if we choose to.
We can control our risk easier than any other product available to traders. This
is why every trader needs to have access to basic Call and Put strategies
as part of their overall portfolio.
Start with a basic Options Trading Strategy and you are well on your way to taking advantage of any event to hit
the markets.
http://www.premiertraderuniversity.com/freeoptionsreversal