Keeping it simple really does pay.
My options portfolio is up 165% since the start of the year. No, I’m not placing dozens of options trades a day…
In fact, the average number of trades is just 2 per week – my best ideas – it can’t get simpler than that.
How do I achieve such stellar returns when the market is all over the place?
I stick to what I know… and what I know are technicals.
With the market so volatile right now, how can I possibly stick to what I have been doing during the long bull run?
Because numbers don’t lie and what I look at provides me with winning trades in any market. Even in this current uncertain environment and volatile market.
I will show you how I am able to use my simple chart patterns to profit in this market as well as any other market.
Technical Analysis with Options Plays
Many people think options are a lot riskier than stocks… but believe it or not, trading options correctly can be less risky than stocks, especially in a volatile market like the one we are dealing with right now.
As mentioned above… despite all the recent volatility that has been plaguing the market… my options portfolio has returned 165% since Jan. 1, 2019.
And following along couldn’t be any easier… because when it comes to trading options… I alert clients on what I’m going to buy and at which price– all in advance.
But how can options be less risky than stocks?
Well, it’s simple actually…
When you buy options, your maximum loss is equivalent to the premium paid to buy the option.
So if the market gaps against me, my risk is truly locked in and I can size my positions properly.
On the other hand, with stocks it could gap below your stop, so you are essentially taking on extra “gap risk” especially in this news-driven market where any headline could push stocks lower.
If you think about it… trading options makes a whole lot of sense.
To find the best options ideas, I actually use technical analysis and specific chart setups that I have developed over the years to plan all my trades. This allows me to consistently profit during any market environment.
They’re the same chart patterns that keep me calm and confident, allowing me to pull profits without letting my emotions get in the way… which is even more important during wild market swings.
So pairing technical analysis with options is a great strategy for volatile times… but let me show you how to forge the two together and develop a profitable system.
For example, I bought Starbucks Corp. (SBUX) options last week… and here’s the chart I was watching for my setups and technicals.
Here you can see the price made a move down below two key moving averages.
But if you take a closer look, the bears tried to push SBUX below those key levels (the blue and pink lines)… but no dice… and the stock actually closed above that area the following day – signaling bullish price action could’ve been in the cards.
That’s when I was looking to buy SBUX calls (a bullish strategy).
I placed a bid to buy SBUX 97.50 calls @ $3.05 on Aug 28 as the price held above those two lines in the chart from earlier… and started to perk up the following day.
Why $97.50 calls?
Because that has been a major resistance level for SBUX over the past month. Using technical analysis let me know there was a high chance of SBUX testing that level off of this chart pattern set up… and potentially running higher.
What happened next?
The very next day SBUX gaps up, hits my target and I lock in a 15% profit.
And this was all accomplished with some simple technicals, charts patterns, and options. Just by combining my charts and options, I’m able to set myself up for profits and reduce my risk at the same time.
My options strategy provides me with consistent and profitable trades all year… every year… as you’ve seen with my portfolio returns already.
Sure, I’m satisfied with my performance, but what makes me excited and joyful is receiving messages from my clients… like this one…
“Petra & Heather,
You keep reminding me that I study hard, ask questions, do homework, etc. That is all true.
But in any other environment I don’t believe I would be where I am today with my trading.
You two have taught me to read the price action, recognize great set-ups, manage my risk, & take small profits over & over again. You have been there to answer all my questions in detail, making sure that I understand. You have corrected me when I’m wrong & encouraged me every step of the way.
You have helped me find a plan that works for me by teaching me to look for set-ups across 3 timeframes. That has been an amazing edge in my strategy.
I never dreamed I would have the calm confidence I have today. I am cured of FOMO & 20/20 hind sight. I haven’t said “darn it, I should have _____” in a couple of months now. That’s huge!
As the market closes, with the profits I took today, my 10,000 acct is at 12,841.84, two days shy of 1 month.
With all my heart, I believe this would never have happened but for the two of you!
You are so appreciated & loved.” – E.B.
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