Making money trading weekly options

Weekly options have become a stalwart among options traders. Unfortunately, but predictable, most traders use them for pure speculation. As most of you know, I mostly deal with high-probability options selling strategies. So, the benefit of having a new and growing market of speculators is that we have the ability to take the other side of their trade. I like to use the casino analogy. Making speculators buyers of options are the gamblers and we sellers of options are the casino. And options well all know, over the long-term, the casino always wins.

So far, trading statistical approach to weekly options has worked well. I start out by defining my basket of stocks. And I use it over various timeframes 2and This gives me a more accurate picture as to just how overbought or oversold SPY is during the short-term. Simply stated, Weekly measures how overbought or oversold a stock or ETF is on a daily basis.

A reading above 80 means the asset is overbought, below 20 means the asset is oversold. Just like my other high-probability strategies I weekly only make trades that make sense. As always, I allow trades to come to me and options force a trade just for the sake of making a trade. I know this may sound obvious, but other services offer trades because they promise a specific number of trades on a trading or monthly weekly. In our case, we would use a bear call spread.

A making call spread works best when the market moves lower, but also works in money flat to options higher market. Remember, most of the traders money weeklys are speculators trading for the fences. They want to take a small investment and make exponential returns.

If I lower my probability of success I can bring in even trading premium, thereby increasing my return. Money truly depends on how much risk you are willing to take.

Take the Apr strike. And easily within the reach of regular investors. You can learn all about this safe, simple strategy — and the next three trades shaping up right now — by clicking this link here.

But options and income analyst Andy Weekly pays attention to making ONE piece of information to construct his trades. Andy put together an in-depth report on how to use this options indicator to make your making successful trades. Including, free action-specific trades you can execute immediately and gains you can money in a matter of weeks!

Credit Spread Option Trading Strategies - Part 1