Hughes Optioneering

March 23, 2017

Directional Option Trade Strategy

By: Chuck Hughes

In this video the Hughes Optioneering Team will explore one of their Top Trading Strategies for 2017 for selecting directional option trades.

Options are derivatives that derive their value from the price of the underlying stock. Option profits are determined by the price movement of the underlying stock. If you can identify a stock moving up in price, you can profit from purchasing call options.

Conversely, if you can identify a stock moving down in price you can profit from purchasing put options.

Step 1 of Prime Trade Select allows us to quickly determine if a stock is on a ‘buy’ signal or ‘sell’ signal. We purchase call options on stocks that are on a ‘buy’ signal and put options on stocks on a ‘sell’ signal.

The second Step of Prime Trade Select allows us to select a low risk entry point for our option trade.

A low risk entry point helps prevent being stopped out of a trade and increases the accuracy of our option trading. Actual option trades will be used to demonstrate how low risk entry points can help you become a more profitable option trader.

 

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Futures, stocks, bonds, currency and options trading involves high risks with the potential for substantial losses.

PLEASE READ. Past results are not necessarily indicative to future results. There is a substantial risk of loss trading stocks and options with or without this or any other advertised product, service or system. Also, hypothetical or simulated performance results have certain inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading. Since the trades have not actually been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity. simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown.