Weekly Options Trading Signals
Weekly options by some are considered scary and risky because people who say this are thinking in terms of trying to get the most of the mostest with a greed factor and a fear factor that is through the roof.
You don’t need to only buy far out of the money options and a ton of them to trade short term weekly options. Options have their value and the profitability so you just need to work with what options are in order to profit and in order to profit robustly from options trading and weekly options trading.
As you probably know by now not only can you buy options but you can sell options and you can have combinations of options. The options combinations strategies can get really complicated for many folks especially when they are trying to coordinate with price action entries and exits. But like anything, else once you just get used to it and then you would become good at trading options combinations mixed with the concept of forming a habit out of it so it seems like nothing.
That said, we mostly stick with the simple approach of buying calls and puts for limited risk with unlimited reward potential. Selling naked options with weekly options can be great, if you know what you are doing and have matured to professional trader status, otherwise, naked weekly options selling can suck you in to all sorts of traps if you’re not prepared for those surprise types of moves.
When trading weekly options not many people think about using in-the-money options. The options by mindset is associated with cheapnees. They want to see those low prices. But once one family gets over that immature mindset then they start looking into the concept of maybe buying options that are a little bit hiring price for the sake of being able to actually profit on a more consistent basis.
One approach that we take with our options trading signals services for weekly options signals is to buy in the money options. What this means is that we are going far enough in the money so are deltas are already very high. And when we do have a profitable move we are quickly in a higher deltazone with even close to 100% Delta’s.
When you are trading at the money and out-of-the-money options you have to wait for the stock to go a large distance relatively speaking, in order to get close to 100% Delta’s. This makes trading a lot harder. Also you have more premium at the at the money and out of the money options strikes. So you have a double Factor against you. When you go far enough in the money you have less premium that quickly becomes a non-issue as you start progressing in your desired direction.
With our weekly options signals we like to have very good momentum trigger entry point so most of the time, the trade start moving right away in our favor helping our position ride past the premium issue well into the higher delta’s thereby giving us profit for our stock’s effort, even with just a little bit of price movement. Whereas, when out of the money and at the money, the option position may not make very much profit based on momentum, plus you have the heavy premium decay costs on a shorter-term weekly option which can be a drag. Yet the premium decay is a drag when you don’t have your style of price action move coordinating with: 1. time in the trade 2. time to expiration. and 3. the strike.
And what about the concept of greater risk using the deeper in the money options. Yes you can say you have more point risk but risk is relative to your trading strategy method.
We are trading with high probability entry points based on our price action based trading systems within our weekly options trading signal services to give us a trigger for high probability high velocity momentum.
So that right there mitigates most risk.
Of course you always have the risk or benefit of a big overnight move. Sometimes these moves go against us and sometimes they go for us and that’s just part of the game that needs to be mentally and mathematically figured into the equation of trading stocks or options.
Yes and sometimes you can get massive gains by being in line with what the price charts are saying in combination with these big surprise overnight moves which usually happen in line with the price charts.
Also we always use stop losses. You can use contingent orders based on price for setting your stop losses to make things easier. We don’t sit there watching the trade all day, we use contingent orders instead.
So if you’re interested in seeing some very good weekly options signals services at work check out these weekly options trading signal services that we have below. .
Additionally you’re not obligated to buy options only with our weekly options signal services. You can sell Naked options. You could use credit or debit spreads. You could use other options combinations. Or you could just forget the whole premium decay worry thing and trade stocks.
When trading stocks and options we look to use no margin, no leverage that is, which then therefore removes historical problems associated with the use of margin. The ideal is to make very good cash flow from trading weekly options then start to use those proceeds to fund a stock trading account and use 100% cash positions to trade our various signal services that trades stock, using some really good stock trading systems.
You can come up with your own creative methods for trading weekly options or just use our weekly options trading signals services for short-term momentum and put those to work.
You can ask us questions as well for any new ideas on how to trade the signals. The bottom line is that we provide you with high quality, high probability momentum-based trading signals off of which you can use whatever way you want.
Check out more information on our trading signal service is here. Click on the logo for more information.