The Option Cycle Strategy

My call option purchase strategies invest in options on stocks that are in a price up trend with solid fundamental characteristics. Historical and actual profit results demonstrate that this combination of strategies produces a powerful investing force that identifies options with the greatest profit potential.

The Option Cycle Strategy takes option trading to a new level by increasing the accuracy and profitability of option trades. The Option Cycle Strategy utilizes historical price data to help select an option’s time length (expiration date) and strike price with up to 90%+ accuracy.

While stock selection is important for successful option trading, in my experience selecting an option’s time length and strike price is just as important as selecting the stock itself!

When I discover a stock that meets my technical and fundamental selection criteria and decide to purchase a call option, I must then decide on an option time length (expiration date) and strike price. For many stocks there are literally hundreds of options to choose from with different expiration dates and strike prices. The Option Cycle Strategy enables an investor to effectively choose an option with good profit potential from several hundred choices. The goal of the Option Cycle Strategy is to enable you to become a successful options trader by helping you understand the time length and strike price selection process that results in high accuracy and more profitable option trading.

I use the Option Cycle Strategy to select time length and strike prices for the following option strategies:

1. Call and put option purchases

2. Call and put option spreads

3. Market neutral option spreads

Let’s take a look at some recent Option Cycle Strategy profit results. I use the Option Cycle Strategy to select time length and strike prices for call option purchases and option spreads for my web based advisory service. The table below lists the current open trade profit results as of today, May 30^th. The portfolio currently has a $66,950 profit before commissions and an average return of 240%. All of the call purchases and option spread trades are profitable demonstrating the high accuracy of the Option Cycle Strategy.

Call Option and Option Spread Trade

Open Trade Results as of May 30^th

I also use the Option Cycle Strategy in my own trading accounts for option purchases and option spread trading. Using the strategy contributed to my $885,920.39 profit as shown by the copies of my brokerage account profit/loss reports below. All of the trades are profitable with an average return of 92%.