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Trading Apple Using My Daily Options Strategy: Spotting The Lows 118 comments
When I began developing my daily options trading strategy over eight years ago, I initially began with only a few select stocks. The first was Potash (POT). As time moved on, I began implementing more stocks into the strategy and eventually came up with the current list of nine (9) main stocks, which are basically ones that are over $100.00/share, have liquidity with their options, large daily price swings (ranges), and that also have a fair bid/ask spread. To read more on my strategy, please see this link here seekingalpha.com/article/304428-a-daily-options-trading-strategy-for-high-flying-stocks. Here is the link www.amazon.com/Breakthrough-Consistent-Strategy-Volatile-ebook/dp/B006Z4HSRI/ref=sr_1_1 to my e-book on this daily options strategy.
I like to start every article with the basics on how to use this strategy with the five technical indicators. Here is a quick summary:
The stocks that I currently use with this strategy with are the following:
There is probably no other stock around that is so easy to spot a daily low point than Apple using this strategy. Understandably, it is very expensive to purchase Apple stock outright. Apple is currently trading at about $610.00/share, and just 100 shares alone requires substantial funds to put your money to work. Not only that, but you are basically hostage to the stock going up. My strategy aims to get in-and-out of your trade as quickly as possible, usually in minutes.
Apple has become my favorite stock to trade using this strategy, followed closely by CF Industries. The key is to wait until the Bollinger Bands start expanding (never make a trade when the bands are narrow), and to get your trade ticket ready. Apple moves so fast and so quickly that any delay or procrastination in doing so may cost you some serious cash. It is also important that you wait for the other four indicators (the RSI, IMI, MFI, and FSO) to hit their buy points. Once that is reached, it is all about the Bollinger Bands. Never make a trade until the price line 9action) is below the bottom Bollinger Band. In fact, I like to let it "bleed", which means that when a stock is falling fast, that you allow it to sit below the bottom Bollinger Band, stay there just for a bit, and then pull the trigger on the call option trade.
There have been numerous examples over the past six months when Apple was in a downtrend, riding the bottom Bollinger Band, and continued to fall, even though the price action fell below the bottom Bollinger Band. This is what I am talking about when I mention, "letting it bleed" until there is a stoppage in the stock price falling.
Now that the implied volatility has come down after Apple reported earnings on Tuesday, the option prices are much cheaper than they were before the release. This allows for more contracts to be purchased without having to pay too high of a premium.
To summarize, keep an eye on Apple at all times and have your trade ticket ready to go when you see Apple's stock price falling quickly, as a trading opportunity can literally present itself in minutes. There is no other stock that I use with my daily options strategy that gives the trader the chance to make a trade and have the high probability that they will be able to sell it just as fast.
If you have any questions, please leave a comment or send me an e-mail.
Disclosure: I am long AAPL, AKS.
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This post has 118 comments:
Thanks again!
I am still not confident with spotting trades, and frankly have pulled the trigger too soon on a 3 trades. 1 worked out luckily (PCLN), but had to hold overnight, one (AMZN) I bailed at BE, and LNKD one took a bath. Wonder if anyone confirm any trade signals from today with all 5 indicators firing? Were they call or put trades , which ticker and time of trade, thanks.
Kevin- how about an Instablog to the group here on some recent trades...anything over the last few weeks...but at least 3 or so to compare. I'm sure your busy but can you at least respond to this request?
Make a Kindle book on the Reverse Condor strategy. I will buy that, too.
Marc
I'm confused Kevin... U asked me to send u an email if I had questions... I did and days have passed with no response...
The frequency of your posts is at an all time low since your tenure on Seeking Alpha...much like a stock chart can be used to pinpoint an all time low...
Missing posts... failure to respond to pointed questions...
Was your invitation genuine?
From these articles and discussion threads, I have read mixed results of people who have tried the strategy. I would love to hear from those, especially those who taken the time and spent the resources to train with Kevin, to know whether they are able to produce consistent results over time based on the strategy alone. I would also be interested in knowing of those who began using the strategy with a string of winning trades, how long the winning streak lasted until a big loss hit due to the lack of risk management the strategy offers. I read some excitement from people in the early stages of using the strategy, but there has been no word from them in these threads since.
Although the strategy sounds good at fist, I have a hard time understanding how it could be a consistent winner if it does not pay attention to support and resistance levels and especially since it advocates AGAINST any risk management. Anyone trading without a predetermined stop is just asking for trouble. Since this article is about AAPL, I can name times over the past months when the stock had all the technical indicators at extreme levels and expanded Bollinger Bands, with the price well below the band, but a reversal to the mean never happened. The stock simply broke support on heavy volume and continued to slide. The strategy does not pay attention to that detail.
Constructive criticism and critique is what makes all of us better traders. Let's face it: no system is perfect. Kevin, I'm sure many would like to hear you respond to the requests and comments in this thread.
In the event that the silence prevails, then I guess I have my answer --- and the answer is not busyness. Someone who has the time to say he is busy has the time to quickly cut and paste some information.
To another point: if you missed the DNDN trade last week, sorry. This was a major homerun, and there continues to be many, no matter the market conditions. You just have to know what to look for and when.
Many of the questions asked on this particular thread have been answered time and time again. Please see my original articles on this strategy (the CF and Volatile Stock one) and please check out the comment section. You will find many answers there.
As far as Passion4 user, give me some time. I will finally have some free time and will be writing many articles, on this strategy and for earnings trades. So Bueller, Bueller, calm down, I'll respond soon enough.
I would like to add one more thing: sometimes, it is impossible to break someone of bad habits or previous and enormous losses prior to meeting, hence the reference Passion made on his last post.
Date/time of entry/exit?
Contract month/Strike price?
# of contracts?
Surely this isn't too much to ask Kevin? It takes less than minute to get the details off your acct statement and less than another minute to post...
Risk mgmt aside-- I have been asking u for details on profitable trades-- can you oblige? Im not concerned w/ future articles at the moment...you have to my knowledge never broken down in detail your actual trades...why? If u have- my apologies-- please point me to where...
If not- how about now? Thx
Seems many people are at a similar loss.
Since you're the expert, saying everyone has to find their own comfort level feels like you're leaving something out. What we're looking for is how you do it. How much of a move against you will you tolerate before getting out of the trade?
That's all from me. I do not want to waste yours and everyone else's time chasing the elusive. Good luck with everything.
This is sad-- simple diagnosis eh & that frees u from addressing this poster any further? Lol interesting gig ur tryin to run here...
True colors.... They never lie...
As for trying to incorporate some type of assessment on what risk management strategy you guys can incorporate with Kevin's setup with the information at hand-- it never hurts to subscribe to something such as:
1- Max risk per trade (1R) = .5-2% of total capital (based on tolerance)
2- Max capital per trade = 10% of total capital
3 - Max daily loss limit - ? (to each his own)
If you're good enough to get 60% win rate with 2:1 payoff ratio on a $.60/contract profit target and you trade 10 contracts the expectancy per trade is $ 240.... if you need to loosen the reins on a stop loss to get 60% success with a 1:1 expectancy is $120 and so on.
Want to know some facts? I haven't had a losing trade in almost a year. Yes, that's right, one full year. Asking questions such as what is my capital, and furthermore, what is the capital of those I personally trade for is something I will not do. I don't know you from Adam, so it's just not gonna happen. I initially intended to answer your e-mails, but I see where this is going. There are certain things that an article, or book, can never explain as well as seeing it live, in real-time. What I will tell you is that nobody understands Bollinger Bands as well as I do. That I can tell you.
I never once asked about your capiital or yout trainees' capital. I never once asked about your trainees' trades as u also eluded to in a prior post. Seriously-- do u have a clue how absurd it is for u to start your rant off the way u just did?
"A scared trader"??? Lol-- I have REPEATEDLY ASKED U ABOUT TRADE DETAILS.... Heello???? No other questions. This isnt personal info! It would help me and others interested seeing exactly what the macro view looks like. Wow--I sure sound scared... I'd hate to think what u consider "terrified"...
It appears your true colors are showing. U keep this up u will alienate many more readers than u already have...
One thing for sure - your refusal to address numerous Qs that arr standard due dligence Qs is very telling.... Deleting posts too- sound like the scared trader is in your mirror...
I'm not an expert trader, but I've done better with this method than any other I've tried in the past. As long as I stick to the rules and don't force a trade that I'll just regret later. Maybe just beginner's luck...I don't know. But I'm hoping with more practice, I'll get better at it. Anyway, just my $.02
Thanks for sharing your method, Kevin.
You see... the genuineness of a person will truly show thru thick and thin... thru good and bad... thru praise and critique. You need to be an objective judge & jury here and decide... Is Kevin reeeaally here to "help" us? "Scared trader"???? Is that the moniker an experienced trader wanting novices to succeed would coin someone for asking for more detailed trade examples???
Here is the bottom line-- Kevin has no risk management by his own admission. He is using LAGGING INDICATORS for his final trigger... not pure price action on the hard right edge w/ supply and demand consideration. It is a reversion to the mean strategy with no discipline to speak of for the most part. He calls it a cash flow day trade strategy yet insists on trading 30-60 days out options strikes that have deltas that expose you to price decay from implied volatility regardless of the underlying movement--you pay far more for the extrinsic value of time yet will be out of the trade betore market close... yet he in factual error calls front weekly options with deltas that capture the entire movement of the underlying with virtually no impact on IV due to being primarily intrinsic value "expensive" merely because one can buy more contracts with his alternative! This is intellectually and mathematically backwards with much higher risk!
Don't get caught up in his hyperbole-- he has proven by his own actions that u have every reason to be suspect of his intentions and reality as to his claims.
Wow...
Also, how is the risk "calculated"?
To the author: Sir, we only asked a question. Seriously, you need some help.
Good luck to you.
Why does that create this vicious, angry attack on your readers?
Are you intoxicated?
Being a full time directional options trader, I was very intrigued with your strategy initially because of these 4 factors that are virtually identical to a core strategy of mine:
1- Bollinger bands with specific emphasis on expanded bands with significant piercing of outer band
2-Avoidance of taking trades where stairstep hugging of outerband occurs
3- Daytrading options for cash flow
4- Majority of your underlying basket list are in my core list.
This is where the similarities end. I use weeklies... .90 deltas or higher. If going long I use key support levels on a 15 min chart with 5 min reversal candle for entry and key 5 min resistance levels for profit targets with the 60 min chart in a current uptrend (vice versa for shorts). I am correlated with the indexes and the trade is even a higher conviction when they on a 5 min chart are also capitulating with large extended range candles with a large bb pierce. I understand nuances of an outer bb pointing up/down/flat. I am position sized for 1R with minimum 1:1 on 1st target with my stop loss dicated in advance of trade based on where I will be proven wrong if price is breached at key pivots on 15 min chart. The only indicator I use is CCI - however it is for confirmation only and not used for the lagging quality of overbought/oversold signals but rather for forward looking divergence... but will certainly not pass on a trade if confirmation isnt there.
So based on the above info-- while I had critique of your system-- I had many sincere questions and was interested in analyzing some actual trades and what the charts looked like based on my multiple timeframes with S/R taken into account to see if I could further improve.
That was my intention... not for you to have a meltdown of epic proportions.
Exit strategy for PROFIT yes.... NOTHING FOR LOSS! Smoke and mirrors yet another sign of a hidden agenda...
During my first month I took it very slow passing on some great opportunities and trading a small number of contracts. But each day my confidence grew with the help of the group chat room and the guidance you constantly provide.
I honestly believe your training program was the best money I've spent within the investing environment. You taught me how to consistently trade profitably and with minimum time exposure, which is important in todays crazy market.
I also appreciate how available you are when I have a question. Phone, email, text message, chat room. Almost like you are next door and yet your are 2000 miles away.
I wouldn't hesitate to recommend your training to anyone interested in this type of trading.
Thank you!
Just as certain patterns in charts can be very reliable under the right market conditions... so too patterns in posts when the heat gets a little too hot for the author...
Anyone care to take a look at this thread and pick off how many 1-2 comment posters have shown up at ideal opportune times to offer praise and worship?
Pure coincidence.... or thought provoking pause that there might be manipulation here....?
Now price eventually revisits the low of the day but stops $ .19 short at $ 569! Despite no bb pierce this time-- a valid long entry exists here. Why? Again because of demand on the chart and how price left that level. A $ 2.46 move back up. Now keep going to the right of the chart-- price revisits again... WITH A PIERCE! Why does price breach the low this time? RELATIVE WEAKNESS.... AAPL started to make lower highs while the market was making higher highs... PRICE DIVERGENCE. Multiple BB pierces occur at this point as it continues to go lower. There was no reason to go long here due to PRICE ACTION AND THE CHART INDICATING WHERE TRUE SUPPLY/DEMAND IS LOCATED. However-- when AAPL finally makes a new low of $ 567.33 it reverses...why? Look back to 6/14... THE LOW OF THE DAY WAS $ 567.26!! From there price reversed with 3 large candles back up to $ 572.25...all the way to the upper band with another bb pierce! Price then reverses again down to the $ 569.02 mentioned earlier.... because SUPPLY EXISTED OVERHEAD from earlier on 6/14.
I realize this may be difficult to follow - but the moral of the story is there is no better indicator of future price action than supply and demand on a chart. Indicators lag... I guarantee you Kevin's indicators wouldve had you in the trades when you shouldnt have been... and had you in trades late when you shouldve been in much earlier.
Proper position sizing from your stop loss location ensures if proven wrong you know what your risk is.... EACH AND EVERY TRADE.
Thanks for taking the time to reply to my post. I didn't really waste my time reading any of them though. I was too busy trading and making another successful daily option trade. Today it was FB. Took a little longer than most trades I do, (about 2 hours), but still made $1500 on this one. How did you do today? Don't bother answering it really doesn't matter to me. I'm sure most readers have seen your kind of useless posting on other forums. As a matter of fact please disregard this post. I don't want to be accused of feeding the trolls.
Please do keep all the informative posts coming. For those of us not looking for a complete handout we really appreciate you taking the time to make us think.
For the trolls, the beauty of SA is that you can write and publish your own articles. It is a great place for you to post all your trade screenshots, account balances and other 'proof' that your system is better. I look forward to reading them all and hopefully making a few bucks off your systems if they work for me.
Are you so blind that you can't see that Kevin has been promoting a strategy with the intent to make money off of an ebook as well as training... yet claims he is doing this with good intentions to help people... yet refuses to address rudimentary principles of trading such as sound risk management... in addition to complete refusal to provide any trade specifics whatsoever.
Are you so naive as to see absolutely nothing wrong with that picture???
Due diligence is being attempted by numerous individuals on this thread--- in return Kevin has addressed none of it but rather had a meltdown that is shocking to say the least... not to mention fabricating fictitious posters at opportune times in an attempt to save his credibility. Again-- if you cant figure that out you've got issues.
With your vast knowledge and confidence I'm sure it would make SA better rather than using a lack of response from an author as a reason in and of itself to spam away relentlessly.
Here is the definition of troll for you BTW.
Troll (Internet), an internet term for a person who, through willful action, attempts to disrupt a community or garner attention and controversy through provocative messages
I have been following Kevin for some time. I have learnt a lot from him. This thread is for learning about and discussing about his strategy. Please do not make personal comments against him.
We are talking about strategy trading specifics!!! You are out of line. Perhaps you have a hidden agenda of your own and are somehow personally tied to Kevin...who knows.
The bottom line is Kevin is the one who had extended his offer to email with questions and displayed his willingness to help... it turns out that was not really the case now was it? Instead he can only fraudulently create fictitious shills and call people names and poke fun at grammar. Do you condone such behavior? Making up a poster is deception-- how are we to trust this guy when he does that let alone cant provide a trade detail yet touts himself as the greatest?
I have no desire to make a buck of SA nor do I have the desire to write an article.... I just gave you a wealth of info in a series of 3 posts that one can take all the time they need to see the same patterns over and over with nothing but pure price action and pivot S/R levels... there's my article.
You are seriously out of line.
I find it rather amusing and ironic at the same time how say u wont be responding to me anymore...the reality is you haven't garnered a relevant response in the last 4 weeks.... why would I think that would change now?
I take pride in one thing-- exposing you for who Kevin Obrien really is--- a disengeniious person with a hidden agenda....one that will stoop so low as to create fictitious posters to further that agenda.
If you're going to promote a product or service-- you should be willing and able to address both consenting & dissenting opinions and questions professionally...and expect that not all will agree with you. Calling people names...condescension.... criticizing grammar, fabricating an army of fake proponents, deleting critique etc...it reveals ultimately that your strategy ebook & training really isnt all that it's made out to be -- your failure to address numerous due diligence questions says more than anything else...and points to the fact that you are only in this for pure greed in pitching your wares. U see- I make nothing from being here-- u may want to get used to that concept going forward.
I only request one final thing from you-- please dont have any of your other fictitous minion shill posters respond either-- it really is too pathetic for me to handle much more of that fraudulent display.
Oh and as to your well wishes for me to get "burned"... not something I need to worry about with a 1R risk mgmt system in place... unfortunately for your lack of risk mgmt controls that cant be said for many of your students... they have you to thank for that... that's as novice as it gets - and is the single biggest reason for a blown account.
Cant wait for the next article.
Kevin has created multiple aliases and used them as shills to give a false impression of the success of his strategy... in addition he has deleted posts that either were of a newly created shill that I called on the carpet, or that contained content that exposed weakness in either his strategy or his ability to address a concern by multiple readers... all this chicanery in an attempt to further his cause and stop the damage that he has ultimately created for himself, of which I merely brought to more visible light.
Answer this- do you condone this behavior? If so-- can you explain in detail how you justify this... unless of course you practice the same practices...
Why does the cat still have your forked tongue on the DNDN "home run"?
You see-- anyone who truly made a successful trade would be more than willing and able to do so--- they would be proud for all to see the details...
WHY AREN'T YOU? Got something to hide?
Answer the question to the masses Kevin-- you can ignore me-- believe me your reader base wants to know...
Really and truly, those instablogs of "home runs" like EXPE... why didn't you write an article on that ahead of time instead of writing an article on GOOG at around that same time which was clearly a loser? Anyone can claim to have hit it big by looking in the rearview mirror. All of those things speak for themselves.
And I absolutely agree with Passion4. Know your goals. If you are in a day trade, get flat by the end of the day. Converting it into a swing trade is not smart. At that point, you are playing the lottery. You may very well win big, but a few of those gone south and you could blow your account.
Unlike Passion4, I am not looking forward to the next article. I'm getting too old for this stuff. I'm moving back to reading articles where authors will actually have a civil discussion with their readers.
was cutting some of my gains short.
Reviewing my trades I think I may need to go more into the money to get a better delta.I also may have have not been to accurate with the signals re. having signals all at the same time.
I also learned more about options and see the possibilities.
Number one rule when day trading-- NEVER EVER let a day trade turn into a swing trade! Your entry was based on a short term move in a desired direction-- don't let emotions get in the way by trying to justify why it would make sense to hold overnite... especially on a highly volatile high beta stock like GOOG... one big gap in the wrong direction can kill you.
For profit target-- let the chart show you where the potential is above-- resistance overhead will typically stop a stock dead in its tracks for a pullback... if resistance isnt nearby-- instead of $ .60 to $ 1.00 you could be looking at much more potential... but conversely-- if resistance shows that it's only $ .30 away-- setting a $ .60 profit target isnt realistic.
Remember-- Kevin takes NONE OF THIS INTO ACCOUNT. In addition- he does not consider market conditions-- as testified by knowledge of a recent trade he recommended on a weak stock that was in a descending triangle while the indexes where in an ascending triangle... this is RELATIVE WEAKNESS... don't go long. Evidently Kevin has no problem with it. Probabilities say majority of time your support will break and oversold indicators will stay that way for some time. Don't take Kevin's mindset that "oversold is oversold-- it's gonna bounce... hold it overnite" or "the blank blank sector is beaten down..its gonna bounce" etc... that is novice trading. Stop losses are a business expense - remember that. Key is keep them small for success.
Obviously u disagree... so no better way for readers to decide what offers the best risk to reward than to compare an actual trade setup... here's your opp to give a real trade example with specifics previously requested--I will be more than happy to outline in detail a weekly ditm series strike for the exact underlying setup that will prove there isnt a single reason to be trading 30-60 days out.
Let's go Kevin- it's time to prove who's right and who's wrong -- give your readers some faith at least that u have confidence in your own strategy to subject it to a "stress test" if u will..
What say u???
IOW- most of the time you aren't 100% honest unless you preface a forthcoming statement with that line eh?
The facts are "jstearns" that u posted with derogatory comments on my screen name among other things on the 26th....hmm....who else has done the same thing....hmm... Then I posted a reply exposing the obvious.... I refreshed and both posts were displayed.... 10-15 mins later-- GONE. But of course-- rather than immediately replying back then to refute that this isn't a fictitious shlll account-- u show up now.... Too busy u may say? Plenty of time to post.... wait a few minutes then delete eh...? LOL u r not very bright...
Post a trade Kevin.
I saw that setup too,12:02 eastern time. Had my trade ticket ready to submit when my 90 year old dad rang my doorbell to visit. I knew if I placed the order it would have been difficult to monitor the trade under these conditions so I passed on this one. But normally I would have been all over a setup like that. I love trading aapl with this method. Always fast money.
For those who follow Kevin's method the indicators at 12:02 were
Bollinger Bands: nice break below the bottom band
RSI: 20.58 (target area below 30, the more the better)
IMI: 14.73 (target area below 30)
MFI: 7.69 (looking for below 20)
Full Stochastic: 10.23,11.48 (both #'s below 20)
I memory serves, the Aug 580 Call was trading at 29.50 @12:02 when I saw the setup. By 12:42 the same call was trading over $1 higher, even higher near 3pm but I would have been out much sooner. I wanted that trade but another will come along.
The front weekly July 575 call (approx .93 delta) traded at $ 15.20 at 12:03. At 12:42 the July 575 call could've easily been liquidated for $ 16.70 on the bid... for a return of 9.8%...or over 2.5x the return of the Aug 580 call.
I think you get the picture however folks... Less capital in the market reduces your exposure to systemic risk and outlier black swan events... DITM virtually eliminates IV risk--- the DITM has approx $ 14 of true intrinsic value...with only $ 1.19 extrinsic- the Aug options in contrast have over $ 20 of extrinsic value!!!!! Why do you need this for an intraday strategy??? Do you realize what an IV crush will do to that premium???
You posted over 45 posts on this page omg???
How about posting something constructive and respond to the essence of the content....?
It never ceases to fascinate me how those that have nothing to say seem to prove they have nothing to say by advertising it....
How about posting something constructive and respond to the essence of the content....?
UNQUOTE
Earlier Joerii asked what I have accomplished by posting here...
I responded to the effect that I have received private emails from readers thanking me for the input, that they have appreciated the insight, and that further questions were asked for clarification- if which mutually beneficial discussions have resulted-- a win win for all involved-- I get more proficient and others advance with further learning.
Readers on the main board have been stimulated to pause and ask additional questions of Kevin as part of their due diligence.... however to date Kevin has yet to address the issues at hand.
I have exposed Kevin for being less than forthright and unwilling to respond to pointed questions... instead his true colors have come to light as he has rudely responded with useless minutiae and subjective petty criticisms relative to grammar, name calling etc...
In addition Kevin has been exposed for being deceptive by posing under other aliases in an attempt to further his cause and counter the critique.
Now it seems that post is gone... Joerii had responded sarcastically something to the effect of "A public hero"... Joerii will u back me up on that? (of course if you are also a fabricated shill for Kevin-- I wont be counting on that...)
This time I am cutting and pasting my post Kevin so I can easily repost if you choose to delete again...
I am sorry to see what could be an opportunity to learn and grow turned into useless banter. I am interested in hearing more about how people are managing their risk.
While a risk mgmt system such as what u r implementing is exactly the right thought process to have-- for it to be truly effective it should be based on proper position sizing. The only way this can br accomplished properly is to be able to identify on the chart where u r proven wrong. What u dont want to do is simply have R based on a fixed% loss amount-- because u could potentially be exiting a trade where price finally found true demand-- case in point the AAPL trade mentioned earlier-- the entry signal was poor due to support being lower on the chart... price went down over $ 1.40 apprx-- that couldve stopped u out just as price reversed.
Rule of thumb- locate support first- draw ur line in sand then position size based on distance between entry and stop location. TOS allows u to plug in option & stop loss on stock & will give u estimated loss per contract. Then just figure how many contracts based on ur R1. Since .90 delta options dont deal with high risks of iv & time - the estimate is very accurate... but i always add a fluff factor for slippage just in case-- better to err on side of caution.
As you have probably figured out by now-- I am a big fan of Apple. But in the past I have not had much success in trading the options.
I am very interested in your system but cant really afford it at this point in my financial situation... would you have any opinion on what would be a good entry point that you would be willing to share? I am thinking 60 days out to catch the move that I think will occur based on the September product launch event... Im frankly confused since its near all time high on when to get in.
Thx Seth
I purchased Kevin's book the other day and read it in one day.
Kevin for all you hard work and time writing articles for us traders was only happy to pay 10 bucks for a well written e book and support your work.
Have been trading options a long time so was easy to pick up his system. I really like the concept. But having four overbought and oversold indicators isn't that just the same thing as looking at one overbought oversold indication. Correct me if I am wrong but they are always going to look very similar I trade weeklies all the time.
If you use at 50 or 60 delta on a weekly strike that could be the risk management. The option expiring would always be max loss ie stop loss. And if the trade is a day trade only a couple hours the theta should not even be a issue.
Over all like you system but think a second look to apply weeklies to the strategy could only help improve risk / reward.
Kevin your thoughts.
Thanks
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Bought a 38/28 strangle on (EXPE) yesterday, Major homerun.
Apr 27, 2012
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AAPL continues to roll
Feb 15, 2012
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AMZN options were priced like PCLN last quarter... too expensive. I feel for those who used a weekly straddle
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