To combat this disadvantage, I had to develop a trading style and methodology that was independent of the news of the day. It had to be a strategy that worked in my favor so that the news-of-the-day crowd would make ME money. The strategy I came up with takes advantage of volatility. You see, the most important component of an option's price, after length of time on the contract, is volatility. When volatility picks up, options' premiums pick up as well. That is where I step in as an options seller - not as a buyer. Before I ever sell an option, I need to know that it fits my strict parameters. Otherwise, I am just gambling again. I use tools like a probability calculator and look at the company's fundamentals. Then I ask myself... What price would I pay for this stock? Would I be a buyer at current prices, or do I want to get a huge discount on the share price today?
The answers to those questions form the crux of my put-selling strategy, which has a 97%-plus success rate going back to May of 2019 and an 80%-plus success rate going back many more years. I don't care what the market says right now... I care what my calculator says should happen with an 80% probability. Can you say that with confidence? That you expect 80% of your trades to work? Not many can. YOUR ACTION PLANThis strategy is just one example of how discipline has served War Room members well - extremely well, I'd say, seeing as we've had only two losing trades (one was a 3% loss) and 64 winners with this strategy since May of 2019. If you want a piece of this put-selling profit parade, join me in The War Room now! I will teach you not only how to sell puts but how to sell them profitably, time and again! Click here to get started. |
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