Trading the "Pulse" of the market
PULSE represents the 5 criteria for a winning Money From Nothing trade.
P Potential for Profit
U Upside Reward
L Low Risk
S Strategic Setup
E Event / Entry & Exit
If you subscribe to the weekly PULSE Update, you can jump right to the last two criteria....
S Strategic Setup and
E Event/Entry & Exit...
Because, every Saturday I post a short-list of prime canidates for the week ahead, which fit the criteria for:
P Potential for Profit
U Upside Reward
L Low Risk
All you have to do is flick through the list. find options that meet the Strategic Setup. And get in ahead of the Event. Easily done in 10-15 minutes!
Introduction to Weekly Options
Weekly options are primarily available on the major indices and most liquid stocks, as well as several exchange traded funds (ETFs) and individual equities.
First, weekly options inherently offer a greater delta. That means they are more responsive to changes in the underlying security’s price during their lifespan than monthly options.
Second, weekly options don’t suffer from high theta. In other words, time decay isn’t a major impediment for weekly options. Since they’re so short in duration, there’s no excess time value (or premium) baked into the price. As a result, weekly options tend to cost less.
While those two details are the favorable technicalities, the overarching attraction to these new short-term derivatives is not only “bigger picture,” but much more important than the high delta and low theta: Weekly options are amazingly flexible.
One of the more challenging drawbacks of trading traditional options has been the misalignment of a trader’s time frame and the option’s lifespan. For example, a trade’s “sweet spot” may end up spanning the last week of one month and the first week of the next month. However, since monthly options expire right before that sweet spot has occurred (and are issued several weeks before that period begins), a trader may be forced to choose an option, expiration or strike price that doesn’t fully maximize a trade’s potential. Said another way, a lack of choices of when an option’s life begins and ends means the trade’s theta and delta aren’t ideal, leaving money on the table.
Since weekly options are new every week, a trader can pick and choose to step into a trend that’s moving at the time. Or, he or she can choose to pass on a trade that’s stagnant at the time. And what happens when the underlying stock or index starts to move again? No problem — just step in again with the next weekly issue. There’s no need to waste time and tie up capital by holding an option during the underlying security’s dead periods.
One of the primary reasons equity and index options exist in their traditional time frames — with a lifespan of months if not more than a year — is to offer active investors a way to leverage his or her capital, while allowing them to ride out rough patches on the way to the end goal. Weekly options, on the other hand, are a short-term chartist’s dream. The key question is: Where will this stock/index be in a week (or less)?
In conclusion, we will consistently and constantly show you price moves so large that if you get good at grabbing a small piece, your account will grow more than you could ever hope for.
Without going into too much detail here, we have two core strategies (Straddles & Strangles) we use to increase our accounts. Both of these are solidly Non-Directional. We don’t care whether the stock goes up or down, we just want it to move.
These lesser risk strategies may generate lower returns, but their success ratio is extremely high when timed following our Pulse System. As you gain experience, you will be able to implement straight directional trades for even greater results.