Sep 2021: V $220 – $225 Bull Call Spread
COMING OUT OF A CORRECTION
During a correction, 2-4 weeks of trades will get absolutely wiped out, but we save so much cash with this trading method that using it strategically will save you from these events which come unannounced and without warnings. All the trades taken during the correction are looking like winners. Here is how the next few weeks look like for our trading group consisting of 1000+ traders. Read the analysis in the end for tips on how to survive corrections.
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Trade Selection Criteria
Overall market movement
No prizes for guessing. This was the big SeptemBEAR and markets have been getting annihilated. I prefer taking trades on pullbacks so this is a great setup.
No Earnings or Significant News
Earnings are on 10/26 and do not overlap with our trade.
Bollinger Bands outside Keltner Channels
Bollinger bands are clearly outside Keltner Channels
RSI is turning up after the recent sell off
DI- is turning down and DI+ turning up. These are rare, but amazing setups to trade.
Beginning Account Balance
Ending Account Balance
This was very informative. Tx.
I have read your book and had question on length of typical option strategies
I believe in you book you mentioned 35-40 days.
Are all your trades set-up like this or does it depend on the type of trade and situation. Do you use strangles or straddles at all or mainly the vertical spreads
All my trades last 30 days. The only exception is Corrections where I could take trades 45 days out. Although, I have experimented with every single option strategy out there like Iron Condors, Buterflys, Ratio Spreads, Straddles, Strangles and it was lot of fun doing it, but it didn’t make any extra money. All these fancy strategies are out there so authors can write books about them and just a way to keep your mind busy. The real test happens when you try to make money consistently using all these strategies. I now stick to debit spreads only (verticals). They are the easiest to understand, execute and track and I have used them to generate 1000% returns in my portfolio for a decade now.