Profiting from weekly options requires understanding how to
trade weekly options effectively, planning your trading strategy, and most of
all timing the market.
FINDING THE RIGHT STOCKS
The very first step towards profiting from your trading is
to find the best stocks on which to trade weekly options. There are a number of
factors involved in choosing stocks that provide the best trading
Price movement is obviously extremely important when it
comes to profiting from weekly options. If a price does not move significantly
in the direction of the trade – upwards for a call option, or downwards for a
put option – there will not be any opportunity for realizing a worthwhile profit.
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FACTORS TO CONSIDER FOR PROFITING FROM WEEKLY OPTIONS
One of the key factors that make a weekly option
a viable choice for a profitable trade is that there is an imminent catalyst
which is expected to cause a substantial change in the price. These catalysts
include company news such as sales or earnings reports, events in the sector,
and general economic news.
It is also vital to consider other factors when selecting
which weekly options to trade. Implied volatility, which is the anticipated
amount of fluctuation in price movement, is one main consideration. If a stock
is unlikely to experience considerable price movement, it is not likely to
provide the desired profit from an options trade.
the importance of volume
Volume is also a main point to consider when trading weekly
options for profit. An option that shows high volume indicates that a large
number of contracts are being bought and sold. This means that when the desired
profit has been attained, there will very likely be buyers ready to purchase
your contract at your required price. If a stock and its corresponding options
tend to experience low volume, this may result in being unable to sell your
contract, even if the market price has reached your goal.
USING ENTRY STRATEGY
Another vital aspect to profiting from weekly options is to
have a solid approach to your entry and exit strategy. Buying into an options
contract at the best possible time, and the right price sets the stage for a
profitable trade. With our trading alert service, there is a buy-in price given
with each trade, but our members need to use their judgment in different
The price at which you wish to buy into an option may not always be
possible at the moment you want to enter the trade. In this situation, you need
to gauge whether it is likely to keep climbing, in which case, entering at a
slightly higher price would still be worthwhile.
EXITING THE TRADE AT THE BEST POSSIBLE TIME
Deciding when to exit the trade can very well determine
whether or not you achieve a profit at all, and also the size of that profit.
There are many different approaches that you can take in regard to your exit
strategy, and it depends largely on your risk tolerance as well as your ability
to monitor your trades.
We remind our members and readers often that taking
moderate and consistent profits leads to a pleasing overall result. Two pitfalls to avoid are either putting too
much capital into any one trade, or letting emotions run away with you when you
get out of trades too soon out of fear, or hold them too long out of greed.
WINNING WITH WEEKLYs
When trading weekly options, you need up-to-the-minute
knowledge of the events affecting the market, as well as an understanding of
which weekly options to trade, how much to pay for these trades, what strategies
to use, and when to enter and exit each trade.
If this sounds like a lot of work to you, don’t worry! Our
membership service does all of this for you, so join us today, and start
winning with weeklys.