Case Study of the Week
This case study is based on actual trades using the strategies taught by the team at Options Money Maker. Our focus is to teach traders a consistent and conservative approach to trading credit spreads, debit spreads and other combination spread strategies to earn higher than average returns.
We believe that there is no better manager of your money than you, armed with the education and experience to create great returns and do it with peace of mind. We also believe that there is no better way to learn than to “mimic the masters” and then actually do it yourself! These case studies are designed to be a supplement to your education and show you real examples of the trades we open, close and adjust while minimizing risk, eliminating fear and growing a big account.
How well can you predict the direction of the stock market based on the headlines or “talking heads” on the national financial shows? If you said you had great success, you are not being honest! Bottom line is the market will react the way it reacts and we have no real way of predicting based on emotion, headlines or anything else. Some negative news stories result in the market reacting in a negative fashion and some elicits a positive move in the market. Also, please be reminded that the so called “experts” on national news programs are “entertainers” and have no real positive track record on predicting the market or trading successfully. So what do we at Options Money Market do with this? We state frequently that we use technical indicators to predict the natural bias on what the market might do next. That is different than telling you that we can predict the market movement. We take those biases and establish positions based on that information that will allow us to benefit from the expected move, but be protected against an unexpected move. Does any other financial advisor really explain their process this way?
How do we do it…?
We know one thing with 100% certainty; the market will cycle up and down. We don’t always know how much or on what time frame but we know this will happen. As long as you establish positions that have a “forgiveness factor” you will be successful in the majority of your transactions. One of those key factors is time. We build plenty of time to react into our positions so that we can implement management strategies if needed.
What is our philosophy…?
This case study is about strategy and philosophy rather than a specific position. It is important as you read about our various case studies that you understand the logic behind the trades. What happens if the market moves against you? If you have built in time to respond you will do fine implementing management moves to create a profit where most investors take a loss and move on. We use Calendar Spreads, Iron Condors, Vertical Credit and Debit Spreads and other strategies to achieve our goals. Do you really know how to do this?!
Do you have the kind of confidence and comfort that our investors do?
What is keeping you from taking action? Let us teach you how to think like a trader?