SANTA CRUZ, Calif., May 9, 2016 /PRNewswire/ — “Hedge funds are finding out that flat is the new up this year,” according to CNBC, who says hedge funds are struggling, creating a domino effect that’s wiping out investors. In fact, they are, “…down .08% through March alone,” according to HFR.
Investors, eagerly seeking safer alternatives, felt they had waited long enough, and pulled their support; to the tune of $15 Billion, leaving a sea full of skeleton hedge funds in their wake.
Not everyone is suffering.
Mark Dannenberg, Founder/CEO of Options Money Maker, along with his team, Michael Kastner, Allison Ostrander and Erin Ruemmele, showed Live Trading Room students how to lock in profits every week, for the first 17 weeks of 2016. Even against the flailing, flat lining markets, his Live Trading room students became the victors, with a 10% net gain for April, a continuation of the 72.6% return in the Live Trading Room during Q1 2016.
New York Stock Market Update
The Art of Trading: More Profits in Less Time: Cash Flow, Retirement Security and Financial Liberation by author and veteran trader Mark Dannenberg is more than just a book on options trading. Each chapter is loaded with useful, easy to understand information on option trading basics (for beginning traders), technical charting, strategy and management techniques. Plus, an entire chapter of the book is devoted to Market Tamer strategy. The Art of Trading reached #1 on Amazon in under 24 hours. The book is designed to guide a trader from a basic understanding of trading options to being able to place trades and evaluate a position. These topics essential to any trader are presented in an easy to follow, quick to learn format.
In this comprehensive guide discover how The Art of Trading will offer:
- Results Focused Strategies
- Consistent approaches to trading without traders having to spend all day in front of their computer
- How to Trade Spreads with a Forgiveness Factor
- When the price moves against you, you can still profit
- Learn How to Profit in both declining and appreciating markets
- Proper Position Management
- How to Manage and adjust position to increase the likelihood of profit
- Market Tamer Strategy
- Simple, non-directional strategy so you never have to worry about market direction
- Technical Charts describing and explaining multiple indicators
- Learn to read them individually
- Discover a consensus pointing to the directional bias of a stock or index
“The Art of Trading offers Proven Strategy—High Probability of Success, Mark has a very distinct ability to present clear and concise trading information, easy to understand, and how to implement a winning strategy. His approach is to teach the trader how to place highly conservative trades, that return highly consistent profits—time after time. They all add up for a handsome profit for the year. No “home run” swings, just consistent trading for consistent returns. I’m very pleased and excited to purchase this book. Having viewed many of his webinars, I can vouch for his teaching ability and trading strategy. If you want to learn how to trade with high probability of success, confidence, and a proven trading system (Market Tamer), this book will bring it to you.” – Richard C. Shipp Starcom
See how readers have used the book and the trading platform offered at Optionsmoneymaker.com to:
- Generate and Increase Cash Flow
- Grow your overall wealth
- Earn higher than Average Returns
- Protect Capital against potential loss
Case Study Of the Week
This is a series of actual case studies associated with following the investment strategies of the experts from Options Money Maker. We take a consistent and conservative approach to utilizing credit spreads, debit spreads and other combination spread protocols to routinely make high percentage returns at much lower risk than other investment strategies. 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 helpful supplement to your education.
A very successful strategy of Options Money Maker is the vertical credit spread. This case involves a Call Credit Spread, which is a downward bias position, on the index SPX. The position was established when the index was trading at 2110. It was created by buying to open the 2145 Call with 3 weeks to expiration and selling to open the 2140 Call. This provided a net credit of $1.40 with a total risk of $3.60. This credit spread utilized the classic safeguards of our techniques. We built in time for the position to make a profit by using expiration dates that were 3 weeks out. We also built in “forgiveness” in case the index moved upward, by selecting strike prices that were 30 points from the current trading price.
This position was opened on Wednesday and a Good-Til-Canceled (GTC) order was set on Thursday to close the position for $.70.
On Friday, having been in the position less than 2 days, the SPX had decreased by 10 points. This move, along with a small amount of time decay resulted in a current mark of $1.00 which was $.40 favorable to our original credit of $1.40. The weekend was looming in front of us with an unstable world financial issue playing out in Greece. Here is what some of our clients chose to do.
Option 1- Cash is King- Some of our clients chose to cash in the $.40 profit, go to a cash position over the weekend and not give the decision another thought. YOU CAN NEVER GO WRONG BY TAKING A PROFIT. People who trade on emotions, the news, or hold out for a larger profit lose far more times than they win.
Option 2- Time is on My Side- Some of our clients held the position knowing that they had 3 weeks to expiration of the credit spread. This provided confidence that regardless of what happened on Monday, they had adequate time for the position to create a more favorable return than $.40.
Here is what happened… the US markets declined significantly on Monday including a 42 point decline in the SPX. This moved the mark on our credit spread position to $.60 which resulted in an $.80 profit.
What if the market had moved upward? Those holding the position would have had the peace of mind to know that they had the credit spread structured in a manner relative to the strike prices and expiration dates that would likely result in a profit. They would also be supported by a selection of management techniques that may be deployed when the market moves contrary to the anticipated bias.
There was no one right answer in this case. The decision each trader makes is based on their personal views and attitude towards risk. This case study points out the need to learn how to think like a trader versus just following a set of rules.