DTI’s Top 5 Stocks for Trading Weekly Options
Thanks for requesting DTI’s Top 5 Stocks for Trading Weekly Options. Here is the current list: AMZN, BIDU, MA, NVDA, WDAY
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Before you go, I’d like to discuss how to trade these options.
It’s no secret that weekly options are growing in popularity. Yet most traders lose money trading weekly options because they don’t know how to properly use them. Weekly options are uniquely efficient to use for selling options. Why? Premiums on options so close to expiration diminish rapidly due to time decay, even in some cases when the stock moves in your direction. Too many trader’s get caught up in the “get rich quick” attitude of buying daily or weekly options with the hope of scoring huge profits. What they don’t understand, or worse refuse to acknowledge, is that buying daily or weekly options puts the odds against them. You see, weekly options are designed to work against buyers and work for sellers. As the old saying goes, “the house always wins.” For weekly options, the sellers are the “house.” That’s because an option seller just has to be right about where the stock won’t go. In reality, an option seller can make money whether a stock goes up, down or sideways. That’s right, option sellers can even make money if the stock moves against them!
I’m sure you’ve heard that before, but a reminder never hurt anyone. Plus, it’s always helpful to be pointed in the right direction. Finding stocks that set up well for weekly options is hard enough, and then you must decide on what strike to use. To do this with consistency, you must develop a system that works.
Why spend the time and money trying to figure out what really works when you can let a 40 year market veteran guide you?
That’s why today I encourage you to seriously consider signing up to receive DTI’s Weekly Options Course. The course is on demand and you will have unlimited access to watch and learn as many times as you like. Our proprietary techniques for trading weekly options allow us to realize approximately an 80% accuracy rate. Stay disciplined with a proper risk management and you can create your own “money machine.” To be honest, I’m embarrassed to admit that it took me so long to figure out this simple and highly effective strategy for trading weekly options.
Still unsure whether this course is for you?
I personally guarantee that all the information in this course will be easily understood. You won’t find another strategy on weekly options that is as straightforward and repeatable as this. I’d also like to give you a “sneak peak” of some of the training our course will focus on. Here are the first steps, or “guidelines” I take for finding stocks to trade weekly options on:
- Average True Range (ATR) – We want a stocks average true range to be high enough to offer nice premiums
- Volatility – If that high ATR we look for is too high a percentage of a stocks actual price, the risk is too high
- Price Range – Stocks priced above $125 will usually be established companies with low risk of wild price swings
- Strike Price Increment – To lower risk, we prefer to trade options with $1 or $2.50 wide strike prices
These guidelines give you an idea of what to focus on in order to minimize risk. I included them here because that is always my first step to developing new strategies or trade ideas. I believe if you have a strategy that works and manage risk properly, the rewards will come.
Folks, I believe in taking a step each day to better myself. That includes becoming more knowledgeable about my life-long passion for trading. If you take a step forward today to becoming a more knowledgeable and more consistent trader, I hope you choose to start here.
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