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Here’s Where to Find The Best Paid Service For Options Trading

Here’s Where to Find The Best Paid Service For Options Trading

There are many different services out there offering trade alerts, but which one is the best paid service for options trading?

The real question is: who offers the most value?

Based on our research – in comparing with other services – we feel that The Empirical Collective is hands down the best.

The Empirical Collective was designed to help their members increase their investment portfolios by providing stock option trading services with entry and exit option alert signals.

They utilize AI to provide them with a list of great trade ideas and then filter it through the experience of experienced technical analysis traders. Once a trade has been found, they announce them via immediate email so that their members may make the same trade and profit.

Rather than just providing great trade alerts, they also give their users access to exclusive tools they’ve developed.

options trading service

The Option Trade Alerts

On their website, they show example trades that produced a trade win rate of 95.918% and then further elaborate that their typical win rate is around the 90% mark. Which is pretty exceptional.

Of course, you can never take past returns as being a guarantee of future returns, but at least it shows that they’ve been successful.

They also mention that they average about 2 trade alerts per week and provide a link to their past closed trades.

Of course, if you’re going to follow trade alerts, you have to accept the fact that you are not buying a guarantee of 100% trade success (even though The Empirical Collective offers a trade performance guarantee), but that you’re just increasing your odds of trading profitably by using the systems and skills of advanced traders.

options advisory service

Trading Tools

In addition to their trade alerts, The Empirical Collective also offers their members access to their custom research tools.

trade alert servicesThe Social Sentiment Tracker

One of their main tools is a social sentiment tracker that checks many different online trading boards and gives a summary on the stocks that over 19 million traders think will go up or down.

So rather than having to spend hours doing all this research yourself, at a glance you have all the collected data at your fingertips. And it’s generated every couple hours so you can keep tabs on it throughout the day.

By doing this, you can quickly see if there are any stock positions that you should look into (like if there is going to be a huge short squeeze on GME or AMC again).

best trading alert serviceFuture Development

In addition to the Social Sentiment Tracker, they are also developing a U.S. Government Stock Transaction Tracking system.

This tracker will be designed to track all the trades that are disclosed by the U.S. Representatives, U.S. Senators & members of Congress.

So you can see what the people behind the curtain are trading.

In addition to that, they are building an Off-Exchange Trade tracker that will shed some light on huge blocks of shares that have been traded outside of the regular stock markets.

Again, this is being developed to give their users even more insight into where the big money is moving.

Additional Trade Ideas

In addition to their trade alerts, The Empirical Collective also provides research on small cap stocks that they feel have the potential to 10-1000x in the next couple of years.

These are companies that are positioning themselves to dominate emerging industries, or who have unique offerings designed to disrupt the status quo or meet customer demands in a unique way.

Pricing

Many trading services charge per year (often $2500 or more per year), and those that don’t are generally $100/month or more.

And with The Empirical Collective charging $59 per month (at the time of writing at least, but they say the price will increase) they are easily offering more value than any other service on the market.

All things considered, we think The Empirical Collective offers more for significantly less than any other service on the market.

 

Best Paid Service For Options Trading

People wondering about the best paid service for options trading were also curious about the pros and cons of trading options.

The Good Things About Trading Options

  • If you’re trading options trading, you don’t need nearly as much cash on hand as you would if you were trading stocks.
  • You can trade options even if you have a small trading account.
  • There is an opportunity to make huge returns due to the high leverage of options trading.
  • Even small 3-7% rise in the stock leads can bring gains of 100 percent to 200 percent for the same options. (This opens the door to big opportunities to make money with big macro moves or other market moving events.)
  • Traders can make money if the market is headed up, down, or sideways by if they’re trading options.
  • You can trade options to help diversify your portfolio.

best trading alert serviceThe Bad Things About Trading Options

  • To properly trade, you need to develop your own trading system that will be able to constantly provide winning trades – regardless of market conditions. This requires years of research, trial & error, and refinement.
  • Finding the next great trade takes an incredible amount of time & research.
  • It’s a tough learning curve. Financial charts can be tough to understand, requiring years or decades of practice.
  • The jargon of trading can be very perplexing. Many people feel that to perfect the skill of trading, you’ll need at least 10,000 hours. And they aren’t wrong.
  • Staying on top of open trade positions can be exhausting, making it hard to keep up with the market’s pulse.
  • You have to be able to effectively manage your risk when trading – in addition to everything else.
  • Trading successfully necessitates a strong level of self-assurance, as well as faith in your decision-making ability.
  • Delays in making judgments, making bad decisions, and making mistakes may be tremendously damaging to a portfolio.
  • A strong desire to trade stocks and options is required for trading success.
  • To be able to focus and make informed judgments, your personal life must be stress-free.
  • To prevent distraction and have self-confidence, your physical health must be in tip-top form.

trade genie reviews

The Webull trading platform

With its clean design for desktop and mobile apps, Webull will appeal to the mobile-first generation of casual investors, but the brokerage also offers an astonishing selection of tools for aggressive traders. With that said, it lacks access to a few common asset classes, doesn’t have much instructive material, and can leave real newbies in the dark.

Motley Fool Options

The Motley Fool Alert Service

The Motley Fool’s alert service is quite expensive, where you have to pay for a full year before you can start your membership. Aside from that, their returns are marginal at best. Most of the good reviews on the internet come from people who are promoting The Motley Fool itself.

The Gatsby Trades Questions

Similar to Robinhood, Gatsby is a stock and option trading program that does not charge commissions. Due to having a $0 commission on trading options is its key selling point. As a result, Gatsby is one of the few sites that allows you to trade options for free.

Benzinga Trade Alert Services

Benzinga is a professional trade alert offering, and it’s monthly charge of $350 per month shows that they aren’t messing around.

What is the best options trading advisory service?

Simply put, The Empirical Collective offers more value than any other competitor out here.

Market Chameleon

What is a trading alert service?

You can use swing trading alerts services to profit from short-term market fluctuations. To follow a swing trading approach, The Empirical Collective provides trade details & explicit recommendations on when to initiate and exit positions.

Is TradeStation good for day trading?

TradeStation is a piece of desktop trading software and it’s quite sophisticated, making it ideal for professional investors and day traders. Customizable charts for research, automatic method trading, and complex order management are all available on this platform.

What to keep in mind when searching for the best options trading advisory service or an options trade alert service

The most important thing is that they match your trading style. Don’t sign up for a service that day trades if your schedule only allows for swing trades.

And whatever you do, make sure you use proper trade management and only use money you can afford to lose if you’re trading.

The Motley Fool Options and Stocks Investing

The Motley Fool is one of the most well-known names in financial journalism. Tom and David Gardner founded the firm in 1993, when they began offering their investing advice online. This was back when AOL was still alive and well, before services like MarketWatch and Yahoo Finance existed.

Due to their innovative approach to investing, the Gardner brothers immediately gained an internet following. The Wall Street Journal and Investors Business Daily catered to seasoned investors and Wall Street hotshots, while The Motley Fool talked directly to everyday investors. Simply simply, The Motley Fool speaks the people’s language. The Gardner brothers taught fun investment concepts that anybody could understand.

Options Trade Alerts

Motley Fool Options is an options notifications service that debuted in 2009, nearly seven years after Stock Advisor (the stock-picking service). The Motley Fool Stock Advisor was a huge hit, and the company wanted to offer a comparable service for options traders.

The major feature of the Motley Fool Options service is option alerts. The teaching is ok, but most people look for their option notifications.

Every month, the Motley Fool publishes a few new option ideas. These option notifications are great for swing traders and investors. While the warnings are useful, day traders are more likely to choose a more active service. In fact, one of the reasons Motley Fool Options stands out is that it employs an easy-to-follow trading strategy.

The majority of casual investors and traders do not have the time to monitor the market 24 hours a day, seven days a week. While Motley Fool Options take more attention than stocks, they are still quite simple to operate. The team produces suggestions for longer-term traders so that you don’t have to worry about your holdings all day.

Trade Types

I imagined Motley Fool Options to be a fairly simple options notifications service when I originally signed up. I anticipated the firm to suggest a few large-cap equities for long-term calls and puts. In fact, the service is significantly more thorough.

The choices tactics used in the suggestions are diverse. To begin, the team suggests both purchasing and writing options. The team may propose purchasing calls, writing puts, or a mix of the two, depending on the warning.

Furthermore, the suggestions extend beyond simple call/put techniques. The options strategy is given the same amount of attention as the trading thesis by the team. If the team were optimistic on Apple, for example, they wouldn’t merely suggest “buy AAPL calls.” They’d devise an options strategy that maximized gain while reducing risk.

One thing to keep in mind is that if you go with The Motley Fool, this service will include SELLING options. This will require a lot more trading capital (and will require your account to be approved to sell options first).

Weekly Options Trading Signals: A Great Way to Make Money Or a Great Way to Go Broke?

Weekly Options Trading Signals: A Great Way to Make Money Or a Great Way to Go Broke?

If you’re looking to start making bank trading options and are looking into weekly options trading signals, there are a few things to know before you sign up for a service.

And we’re going to look into all of them starting with:

How Do Weekly Options Work?

Weekly options are a type of option contract that expires every Friday. They are usually used by traders who want to take advantage of intra-week price movements.

When you buy a weekly option, you are agreeing to sell your investment at the end of the week–no matter what happens. This type of contract can be done online or offline, and it involves a small fee for breaking the contract.

Weekly options come with several different investment profiles that you can choose from. Depending on the provider, you may have several different portfolios to select from with no penalty for switching between them. In some cases, there will be multiple portfolios available with no fee for switching between them.

What Are Weekly Options?

Weekly options are a type of option contract that gives the holder the right to buy or sell a certain asset at a fixed price on a specific day of the week. The contract is only valid for that week and cannot be carried over to the following week.

Weekly options are a type of option that can be traded on a weekly basis. They were first introduced in 2013, and they have quickly become one of the most popular ways to trade options.

There are different types of weekly options, including cryptocurrencies. Weekly options offer investors a way to trade during volatile periods and make money when the markets are moving up or down.

Weekly options are a great way to make money during volatile times. They offer investors a way to trade on a weekly basis and take advantage of market movements.

What Types of Stocks and Bonds Can You Invest In?

There are a variety of stocks and bonds that you can invest in, depending on your investment goals and risk tolerance. Some common stocks include Google, Apple, and Microsoft, while some common bonds include U.S. Treasury Bonds and municipal bonds.

When it comes to stocks and bonds, there are a variety of different types that you can invest in.

Stocks represent ownership in a company, and when you buy them, you become a part of the company’s shareholder base.

Bonds are debt instruments, meaning that the bond issuer borrows money from you with the promise to pay it back at a later date with interest.

There are many different types of stocks and bonds available for investment, and each has its own unique risks and rewards.

When it comes to stocks, you can invest in common stocks, preferred stocks, or convertible bonds.

hughes optioneering reviews

Common stock is the most basic type of stock, and it represents an ownership stake in a company.

Preferred stock is a bit more complex; it represents a claim on the assets and earnings of a company ahead of common shareholders, but usually carries less risk.

Convertible bonds are bonds that can be converted into shares of common stock at a later date.

When it comes to bonds, you can invest in government bonds, municipal bonds, or corporate bonds.

Government bonds are issued by a national government, and they are considered some of the safest types of investments available.

Municipal bonds are issued by states and local governments, and they offer tax-free interest payments to investors.

Corporate bonds are issued by companies, and they carry more risk than other types of bonds but also offer the potential for higher returns.

What Are the Benefits of Weekly Options Trading?

Weekly options trading offers several benefits over traditional monthly options trading, including:

  • Faster profits: Weekly options expire every Friday, which means you can take profits faster than with monthly options.
  • Greater liquidity: Because weekly options are more heavily traded than monthly options, you’ll have an easier time finding a buyer or seller when you want to exit a trade.
  • More trading opportunities: Since weekly options expire each week, you have more opportunities to trade

 

the weekly options trading newsletter

Weighing Your Options…

When you’re looking to invest in the stock market, it’s important to weigh all of your options and make the decision that’s best for you. For some people, weekly options trading may be the best choice. Here are some of the characteristics of this type of trading:

  1. Increased potential for earning more money- Unlike long-term investments like buying and holding stocks, where profits are typically smaller and take longer to accumulate, weekly options trading offers the potential for larger short-term gains.
  2. Easier to lose money- This type of investment is A LOT riskier than a long-term one, so it’s easier lose money quickly. However, with a higher risk tolerance comes the potential for greater rewards.
  3. Lower transaction costs- When you trade weekly options, you typically pay lower commissions than when you buy or sell stocks or other types of securities.
  4. Suitable for younger investors with a high risk tolerance- Weekly options trading is often recommended for younger investors who are comfortable taking on more risk in order to potentially earn larger rewards.
  5. Bonus (strike price)- Many weekly option contracts offer a bonus (or strike price) that can increase your earnings if the stock meets or exceeds that price by the time the contract expires.
  6. Additional weekly call options- Even if you don’t take the standard option and sell after a week, you can still purchase additional weekly call options.
  7. Potential for large profits- With the right investment, it’s possible to make a lot of money through weekly options trading.
  8. Time-Consuming: As weekly options move very quickly, trading weekly options is very similar to daytrading. So you will need to constantly watch and be aware of what your trade is doing, because you might need to exit the trade in an instant. Because of this, for most busy people, swing trading is often a better lifestyle choice. (Which is why our trades inside The Empirical Collective are longer term swing trade.)

Are Weekly Options Better Than Monthly Options?

There is no simple answer to this question, as it depends on a variety of factors including the investor’s age, risk tolerance, investment goals, and amount of time they can spend monitoring their trades during the day. Generally speaking, however, weekly options offer an intense amount of potential reward and risk, but longer-term options offer a lower-stress trading option.

Weekly options offers a lower degree of long-term impact compared to monthly options. This means that if the stock moves in the wrong direction, the weekly option holder will lose less money than the person with the monthly option. However, weekly options are also less flexible; they can only be traded on certain days of the week.

Weekly options are a great option for investors who are new to trading, though they’re not as flexible or safe as monthly options. They have the same advantages and disadvantages as monthly ones, but the short standard option size is what makes them slightly safer than day trading futures.

Weekly options are ideal for young and risk-tolerant investors because of the low minimum investment amount required to trade weekly options. Additionally, weekly options trading is not a long-term investment. Weekly options are only good for short-term trades, as they must be sold at the end of the day to get the strike price. This makes them solely driven by day-to-day fluctuations in the market.

Weekly options trading can be profitable, but only if it’s done correctly with proper risk management and a strategy for selling out at the end of each week or month.

Weekly Option Alert

In our option alert trading service inside The Empirical Collective we provide trading recommendations for monthly options – NOT weekly options, making it a great resource for members who want to make money trading options.

We provide our members with our exclusive trade alerts via email and post the trade details inside our members area. This allows subscribers to have access to the latest information and trade recommendations as soon as they are made – according to their own schedule.

More on Weekly Options Trading

When looking into weekly options trading signals, option spreads can help provide downside protection in the event the underlying stock declines in price. For example, if you own shares of a company and it starts to decline in price, you can sell a put option to generate income and protect your investment.

You can initiate a weekly covered call trade by buying one hundred shares of a stock and then selling a call option on the same stock. This strategy can provide downside protection to investors by eliminating the risk associated with owning shares, while also generating income on margin if the stock falls in price. In other words, you can make money even when the stock goes down!

Call options play a key role in reducing the cost basis of an underlying stock. When you buy call options, you are buying the right to purchase shares of a company at a specific price. This allows you to control your costs, and can be a great way to reduce your risk.

The sale of a call option can provide downside protection to investors by eliminating the risk associated with owning shares, while also generating income on margin if the stock falls in price. In other words, you can make money even when the stock goes down! Covered call trades provide cash income and attractive returns.

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Covered call trades are a risk diversifier for your investment portfolio, but they come with higher risk than other strategies. However, this is mitigated by spreading them over two different underlying stocks at the same time or by buying put options that can increase profits on an existing call option purchase.

A small account covered call portfolio is a strategy to mitigate the risks of covered calls by spreading them over two different underlying stocks at the same time or by buying put options that can increase profits on an existing call option purchase. This gives you more flexibility and helps protect your investment from potential losses.

Options Trading Alert Services

Right Now, You Have the Opportunity to Join Our Trade Alert Service at a Staggering Discount

Options trading is a tough undertaking right now. The American people are maxed out and have no way of getting ahead, so they need to do what they can to make money and save themselves. However, the only person with the power to change your situation is you. That’s why The Empirical Collective is offering discounted access to our membership for the first 50 sign-ups. This offer will close as soon as we’ve added 50 additional members, or when we’ve completed our system upgrades…whichever comes first. And even better, we offer a win guarantee that nobody else in the industry will. Plus, we’ve had astronomical win rates up to 95.918% win rate and a quadruple digit annual returns. So what are you waiting for? Join now and get started.

With our Weekly Trades, We’re Here to Make It Happen for You

The Empirical Collective provides entry, stop, and target prices for all it’s trade alerts. Our focus is on swing trades and are NOT weekly option trades as our trades have a longer expiration date than 1 week. We do this because we don’t want you to have to constantly be on your computer daytrading – we want to help you make money while you’re at work, on vacation-whenever you have time! And so with our trade alerts we focus on longer-term swing trades so that all you need is an internet connection to get real-time options trading alerts.

See What My Members Are Saying About Our Option Trade Signals

See what our members are saying about a membership inside The Empirical Collective:

“Thank you, Thank you!
Followed your steps exactly, and sold half way the first time and sold the rest today.
Profits both times!!
Two full days worth of work made by a click of the finger!
You Guys Rock!!”

-Jeff Odeh

“Did my first option play after signing up last night.
I was late to UNG but bought the options this morning and sold today for a nice 6% return.
Would have been higher if I signed up earlier!”

-Francine Bernier

“These trades show a lot of potential.
I am planning to add to my retirement based on your trade alerts.”
-Geoff Ewing

 

Weekly Options Trading Signals
For other articles, see:

Shark Fin Trading Indicator
Base Camp Trading Review
Wendy Kirkland Reviews
Are chromebooks good for stock trading?

Shark Fin Trading Indicator: Here’s How to Discover This Harmonic Trading Pattern

Shark Fin Trading Indicator: Here’s How to Discover This Harmonic Trading Pattern

The Shark Fin Trading Indicator is a trend trading indicator that is based on the shark fin shape.

It was developed by Steve Nison, one of the most well-known and respected technical analysts in the world.

The Shark Fin Trading Indicator is a trend trading indicator that can be applied to any time frame and any market to help determine the direction of a stock by looking at a chart.

Of course, many people would rather just have trade alerts given to them, rather than messing around with charts or trying to learn the “ins and outs” of trading the market.

And if that sounds like you, The Empirical Collective can help with their incredible trade win rate (95.819% in some cases), exclusive trading tools and more value than any other competing trade alert service.

You can check them out here.

shark fin pattern tradingGetting back to the topic at hand, this uses the shark fin shape as an indication of whether a stock is overbought or oversold, and forms a “V” or shark fin type shape.

The sharkfin pattern shows up on the chart when there is a big buy or sell in the market followed by an almost instant correction. It comes about because of an overbuy or sell in the market. On the chart, a V-shape forms, confirming the sell signal.

A lot of trading platforms have tools to automatically show you this formation, but we’ll cover exactly what to look for when you’re looking at your charts.

How Do We Confirm That It’s Actually a Shark Fin?

When a basic V-shaped pattern appears, the sharkfin pattern can be misinterpreted, so how can we know if there is an overbuy or oversell?

Simply put, we use the Relative Strength Index (RSI).

This is a great confirmation, as the RSI measures how strong the price action for a certain asset is.

Price action below 30 RSI is considered oversold, while price action beyond 70 is considered overbought.

When the RSI indicates an over-buy/over-sell on the RSI, the Sharkfin pattern is confirmed.

shark indicator

How Do I Trade the Shark Fin?

When it comes to reversing downtrends:

Double check and make sure that the sharkfin formation is truly there.

Then wait for the RSI to fall below 30, indicating that the asset is oversold.

After a strong bullish rise (where the price increases), the RSI should quickly climb back over 30.

You want to enter the trade as soon as a candle closes above the 30 RSI level.

Stop Loss

Set a stop loss at the low of the sharkfin.

Take Profit

Take profit when the profit level is equal to the distance between the stop loss and where you opened the trade.

For Reversing Bullish Uptrends

Again, make sure that the sharkfin is actually there.

Then wait for the RSI to rise over 70, to prove that the asset is overbought.

Once this has happened, it should be followed by a negative move, where the RSI swiftly dips below 30.

To trade this, as soon as a candle falls below the 70 RSI level, open a trade.

Stop Loss

Set your stop loss to a level slightly above the positive rise of the shark fin.

Take profit

You want to take profit when the estimated profit is equal to the distance to the stop loss.

Shark Fin Trading Indicator

Here are 5 Tips to Setting Up High Probability Trades

Regardless of whether you’re using a harmonic shark pattern, any form of price pattern, fibonacci lines in your strategies, they all have to be used within a framework to help you set up high probability trades.

With that in mind, here are 5 tips to do just that.

The first step is to set up the trade

The setup is the collection of requirements that must be met before any stock trade can be considered. If you’re a trend-following trader, for example, a trend must be present. A tradable trend should be defined in your trading plan (for your strategy). This will prevent you from trading when there isn’t a trend. Consider the “setup” to be your rationale for trading.

If you don’t have a good reason to trade that fits your strategy, don’t trade.

But if the setup—your purpose for trading—is there, go on to the next stage.

The second step is to define the trade trigger

Even if you have a purpose to trade, you still need a specific occurrence to signal that it is time to trade.

After the stock has fluctuated or pulled back, some traders like to purchase on fresh highs.

During a decline, some traders like to purchase. When the price pulls back to a level of support, wait for a bullish engulfing pattern to emerge or for the price to consolidate for several price bars before breaking above the consolidation. Both of these are specific occurrences that distinguish trading opportunities from all other market changes (for which you have no approach).

However, before pulling the trigger on a trade, be certain that the trade itself is worthwhile.

You always know where your entry point is in advance when you use a trade trigger. This gives you enough time to double-check the trade’s legitimacy (steps three through five) before committing to it.

The third step – the stop loss

Knowing your trade trigger and having the correct entry isn’t enough to make a good trade. A stop-loss order should also be used to manage the risk on the deal if you’re purchasing stock.

A stop loss can be placed in a variety of ways, but it’s most often put just slightly below a recent swing low for long trades and just slightly above a recent swing high for short bets.

Another strategy is the Average True Range (ATR) stop loss, which includes putting the stop-loss order based on volatility a particular distance from the entry price.

The fourth step is to set a price target

You now know whether the conditions are suitable for a trade and where the entry point and stop loss will be placed.

The next thing to keep in mind and consider is the profit possibility.

A profit objective is based on something that can be measured rather than being set at random. For example, chart patterns give goals dependent on the pattern’s size. When purchasing near the bottom of a trend channel, you’ll establish a price objective near the top of the channel; if selling near the top of the channel, you’ll put a price target near the bottom of the channel.

Based on the patterns of the market you’re trading, decide where your profit objective will be.

Profitable trades can also be exited using a trailing stop loss. You won’t know your profit potential in advance if you choose a trailing stop loss. That’s good, because the trailing stop loss lets you to profit from the market in a systematic (rather than random) way.

The fifth step – the risk to reward ratio

Make an effort to only enter deals when the reward possibility exceeds 1.5 times the risk. If the price reaches your stop loss, for example, you should make $150 or more if the goal price is met.

Before initiating or starting the trade, however, you should examine if the profit potential will outweigh the potential loss.

Walk away if the profit potential is equal to or less than the risk. It’s possible that you’ll put in all this effort just to discover you shouldn’t even place the trade.

It’s just as crucial to avoid terrible trades as it is to participate in good ones if you want to succeed.

If you want to learn how to trade on your own (using the same strategies & techniques we’ve used to enjoy trade win rates well above 90%), click here for a list of resources.

People Also Asked These Questions When Looking for Info on a shark fin trading indicator

What is shark fin pattern trading?

The shark fin pattern is a popular trading strategy among traders and investors. It involves the use of an indicator that measures momentum in order to predict when stocks are going to make major moves.

What is the harmonic shark pattern trading strategy?

It’s just another name for what we’ve been discussing 😉

What is bullish shark pattern?

Essentially a bullish shark pattern is when an asset drops below the 30 RSI level and then almost immediately rebounds back up past the 30 RSI level.

How do you measure a shark pattern?

You measure a shark pattern by using the RSI (Relative Strength Index) to help determine whether an asset is oversold or overbought.

What is TDI in forex?

TDI refers to the Traders Dynamic Index. This particular meta trader indicator is a fairly well used indicator that makes use of RSI, and volatility bands (based on Bollinger Bands) to provide traders with a complete picture of the state of the FOREX market.

What is the shark indicator?

It’s a trading indicator used by traders when looking for an entry or exit point of a trade.

Forex Shark Pattern

The shark fin trading indicator is a harmonic pattern that uses the RSI to determine an entry or exit point. Here’s how to spot it perfectly:

Shark Indicator

The shark pattern indicator uses the RSI to show an over bought or over sold price pattern to determine the next direction the stock will take.

How does the shark fin pattern form?

It forms with a sharp movement in past certain levels on the relative strength index.

 

When a simple v-shaped pattern occurs, so how do we confirm if there’s an overbuy or oversell?

This is where you have to use the RSI to confirm the trend.

What is a shark fin options strategy?

Shark Fin Options are a type of knock out option that includes a built-in mechanism that closes the option if a predetermined price level (yes, you guessed it: the knock-out price) is exceeded before the option contract expires.

shark fin options strategy

 

Retaliation: Will Russia Strike Back & Weaponize Oil?

Retaliation: Will Russia Strike Back & Weaponize Oil?

Russia is on the verge of a full-fledged financial crisis
– but will it strike back against sanctions?

Sanctions imposed by the West have driven the ruble to new lows, shut down Moscow’s stock exchange, and rendered Russian assets poisonous on the global arena.

The White House has even targeted Vladimir Putin’s financial fortress, blocking access to at least a portion of Russia’s $630 billion rainy-day reserve, which was created to cushion the economic impact of this catastrophe.

The key issue now is how Putin, who is now facing Western sanctions on his own riches, will respond in what is quickly developing into economic warfare.

There are rising fears that Putin would react by using crude oil as well as natural gas as a weapon against the West.

In a study released Monday, Louise Dickson, senior oil market analyst at Rystad Energy, said, “Russia’s energy supplies are very much at danger, either owing to being withheld by Russia as a weapon or taken off the market due to sanctions.”

Oil production was already falling short of demand throughout the world.

If Russia, the world’s second-largest oil supplier, deliberately held back supplies, oil prices would undoubtedly increase, causing a devastating blow to consumers throughout the world.

JPMorgan has predicted that if Russia’s exports are halved, oil prices will rise to $150 per barrel. That would represent an almost 41% gain from the current high of about $106 per barrel.

oil production

This jump would also result in a significant increase in petrol costs. According to AAA, the national average cost regular gasoline in the United States is currently $3.61 a gallon. This is an increase of 8 cents in a week and 25 cents in a month.

Even though the US consumes relatively little Russian oil — imports from Russia totaled barely 90,000 barrels per day in December — this is still a global and linked economy.

Supply shocks in one section of the world can have a global influence on pricing.

“It’s a wild card whether Russia would really impede those flows to attempt to inflict pain through commodities,” said Ryan Fitzmaurice, Rabobank’s energy strategist. “If there are genuine supply problems, it will be the catalyst for significant price rises.”

To be clear, there is no indication that Russia is cutting off the world’s oil supply at this time.

And, in the aim of reducing market damage, the West has gone to great lengths to exempt Russia’s energy sector from sanctions. Putin may determine that this is one weapon that should be avoided.

Russia Needs the Cash Generated from Oil Sales

It wasn’t long ago that it was thought that Putin would use oil as a weapon.

Such a plan runs the danger of further enraging the rest of the globe. Worse, restricting oil exports would jeopardize Russia’s petro-central economy. Between 2011 and 2020, oil and natural gas accounted for around 43% of the Russian government’s yearly income.

Inflation will be worse than expected this year, according to Goldman Sachs.

The Russia-Ukraine issue, on the other hand, has swiftly intensified, resulting in the biggest schism with the West since the Cold War.

Putin’s harsh posture and words have astonished onlookers, leaving some to doubt his mental soundness and raise fears about how he would respond to the new sanctions.

Putin raised eyebrows by putting his nuclear troops on high alert over the weekend. On Monday, he slammed sanctions imposed by the “empire of lies,” as he put it.

Putin is also under pressure from the oligarchs who back him up. In recent days, Russian billionaires Mikhail Fridman and Oleg Deripaska defied the Kremlin and called for an end to the conflict.

Natasha Kaneva was encouraged by the fact that Russia had a long history of supplying oil reliably, even during the Cold War, and saw minimal risk of the nation weaponizing its oil exports. However, Kaneva, JPMorgan’s head of global commodities research, is no longer so sure.

“I grew quite anxious after listening to Putin’s address,” Kaneva told CNN last week, referring to the Russian president’s hour-long speech on February 21 in which he laid out a laundry list of grievances with the West. “It was a turning point for me. Everything seemed to have altered.”

Investors, according to the JPMorgan executive, are underestimating the danger that Putin will weaponize oil supply.

“There is no need for any market disturbance,” Kaneva added. “There are no shock absorbers in our vehicle. The price will react in a nonlinear manner.”

Putin is well aware of all of this.

The fact that high fuel prices are profoundly unpopular in the US, leading to the worst inflation in nearly 40 years, isn’t helping matters.

“Putin might strive to inflict severe pain on Western nations,” RBC Capital Markets’ Helima Croft said in a note to clients on Sunday, “and commodities prices may feel the effect of his countermeasures.”

Mike Sommers, CEO of the American Petroleum Institute, an oil-and-gas trade group, did not exclude the possibility of Russia restricting oil shipments.

In a phone interview with CNN last week, Sommers said, “I do believe it’s an ongoing issue, particularly as the West responds to Russia’s aggressive conduct. If he decides to shut off supply, we will be concerned. In this tumultuous political context, no matter what he does, the United States will continue to create.”

The White House Tells Putin NOT to Weaponize Oil

(But does telling someone NOT to do something make them more likely to do that very thing?)

Putin does not need to fully shut down the taps to punish the West. Oil markets are so tight that even a little reduction in Russian supplies might have a significant influence on pricing.

“Even if Russia decreased supplies by 10% to 20%, the price reaction would compensate Russia for the supply loss,” Fitzmaurice of Rabobank said.

The White House advised Putin against taking any dramatic measures to protect his country’s oil exports even before the invasion began.

“It would be a tremendous mistake if Putin decided to weaponize his energy supply,” Daleep Singh, the US deputy national security advisor, said on CNBC.

As a consumer of energy, Russia is “very reliant” on the West, according to a Biden Administration official.

“For President Putin, this is a long-term weakness. If he weaponizes energy supplies, it would simply hasten Europe and the West’s diversification away from Russian energy,” Singh said, calling it a “huge miscalculation.”

A huge miscalculation it may be, but with European & Western economies still incredibly reliant on oil, any price increases will cause immediate and far-reaching economic pain.

And with Putin backed into a corner, who knows where this will lead.

But there looks to be no relief in sight when it comes to rising costs and supply chain issues.

Retaliation Will Russia Strike Back & Weaponize Oil

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Musk Probed For Stock Manipulation While Supporting DOJ Investigation Into Shorting Hedgies

Musk Probed For Stock Manipulation While Supporting DOJ Investigation Into Shorting Hedgies

There’s no love lost between Elon Musk and the SEC.

Musk has been an outspoken critic of how the SEC has failed to act, feeling that hedge funds have used manipulative tactics to unfairly drive down Tesla’s stock price.

But in a new SEC probe, Musk could face charges of stock manipulation of his own.

As that drama continues to unfold, Musk is pleased that the US Justice Department has launched an inquiry against short-sellers. Musk told CNBC in an email that he is encouraged by the DOJ’s ongoing investigation.

In his support of the DOJ Musk lashed out against the SEC, saying that it was something the SEC should have done in the first place.

Federal prosecutors are investigating whether short-sellers collaborated to push down stock prices by leaking harmful research reports ahead of time and participating in unlawful trading methods, according to reports earlier this month. As part of its probe, the Justice Department allegedly took hardware, trade data, and private messages from key people.

Two well-known Tesla critics were said to be among those under investigation. A search warrant was apparently issued for Muddy Waters Research founder Carson Block, an outspoken Tesla opponent. According to Bloomberg, Andrew Left of Citron Research, who has also shorted Tesla in the past, had his devices taken by federal officials.

Musk, for one, mentioned in his email that “short and distort” tactics, which include using bad press to push down a company’s stock price, are a means for experienced hedge funds to exploit small investors. If the DOJ’s investigation can clamp down on this practice, small investors may be victimized less frequently.

The technique some of these hedgies engage is is like a pump & dump scheme but in reverse.

Often they will take a short position (often buying put options to leverage their position) in a certain equity and then post damaging news about the company. This will often cause the price of the company to fall just long enough for the schemers to cash out and make some quick gains.

Musk alleges that hedge funds will often repeat this process over and over, as they negatively manipulating a company’s stock price.

It’s the old “short and distort” technique.

Musk’s animosity for short-sellers extends beyond Tesla. During the dramatic increase of GameStop stock last year, Musk spoke out against short sellers. In January 2021, he labelled shorting a “scam legal solely for vestigial reasons” on Twitter.

But while Musk rages against short sellers, he & his brother (Kimbal) are being investigated by the SEC for manipulating Tesla’s stock price with over some of the posts he’s made on Twitter.

And so the fencing match between Musk and the SEC continues.

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elon musk probed for stock manipulation by sec

The Market & WSB Apes Give Robinhood Stock a Fantastic Monkey-Hammering

The Market & WSB Apes Give Robinhood Stock a Fantastic Monkey-Hammering

Robinhood Markets Inc. has already had a month that would make Idi Amin blush. (That’s bad)

The stock continued drifting lower as this month (and Covid) continued to drag on.

And then things went about as well as a partner admitting to infidelity, as they shocked Wall Street with financial reports about stagnant growth and a gloomy prognosis for the current quarter.

And in “jilted lover” type fashion at 9:30 a.m. on Friday, investors punished Robinhood, sending their shares plummeting by 13%.

Between the rough start to the year and the monkey-hammering that investors gave them, the stock has lost about $29 billion since it first went public in July.

But what are numbers and valuations good for anyways? After all, we print money out of thin air, artificially suppress interest rates and reward companies with negative earnings by giving them higher stock prices.

Wait, this just in: Tech companies from the year 2000 called…

So Robinhood has missed its targets and they’ve suddenly turned pessimistic on how they can boost their stock price back up.

It seems the killer for them was the death of WallStreetBets’ meme stocks, as Robinhood was the brokerage of choice for new traders who signed up in the hopes of riding the wave to ape superstardom. (“Don’t worry Mom! When GME hits I’ll be able to buy my own house and finally move out of the basement!”)

New users flocked to Robinhood by the thousands, engorging their user base in the process.

But with WSB posts down to about 1,000 posts a day from almost 64,000 (!!!!!!), it’s safe to assume interest has waned a little.

Well, that and the fact that the market share for single stock options for THE ENTIRE STOCK MARKET has fallen about 10%. (Single stock options were a favorite among all the WSB degens.)

For the volume to be about 10% of the options interest market, it shows you how hot and heavy the apes were hittin’ it as they got their trade tip from WallStreetBets and YOLO’d their way over to their brokerage account.

But I’m sure Robinhood has a plan to right the ship.

And on the earnings call they pulled back the curtain a little, allowing the rest of us pleebs to see what they have in mind!! Yay!!

Their executives talked about some of their plans for new business lines. (“Yes, new business lines! That’ll stop the beatings.”)

But, to be fair, if you’re facing a grim future and have the negative data to prove it, you’ve got to say SOMETHING on the earnings call.

Just letting the awkward silence continue before the crickets chime in isn’t going to fare well.

Right, so when your tail’s caught in a crack, you’ve got to say something, right?

So Robinhood came up with… wait for it… adding tax-advantaged retirement accounts and fully funded lending.

(Did you just fall off your chair in boredom – while intentionally hitting your head on the ground, hoping to erase the memory of what you just heard – before voluntarily slipping into a coma like I did? No? Ok, so it was just me then. Interesting… Maybe I should get that checked out.)

But wait! All is not lost. While they were at it, they assured investors they were working on plans for foreign expansion.

Ah yes, the whole “foreign expansion” line. That’s where you kick the can of accountability down the road by using an unspecific course of action and vague time frame.

Yes, that’ll work.

But in a stunning turn of events, just like the jilted lover forgiving the misdeeds of their dirtbag partner, it did work!

Rather than rubbing their nose in it, the market pushed Robinhood’s share price back up from their low of $9.97 to $12.73 at the close of the market.

This is still well below the high of $70.39 back on August 4th (and the bearish trend continues when you look at the chart over a 1 year time frame) but this significant bounce seemed have the market saying to Robinhood, “Naw, I ain’t mad at ya bro.”

So overall, a sort of negative day for Robinhood?

At least going forward the prospects look pretty grim.

But on a more positive note:

 

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My Investing Club Reviews 2022 – A Closer Look Of This Active Day Trading Community

My Investing Club Reviews 2022 – A Closer Look Of This Active Day Trading Community

Investing can seem daunting, but it doesn’t have to be. With the help of a club or group (the best being The Empirical Collective), you can make investing easy and fun. In this post, we’ll take a look at My Investing Club Reviews. In this review, I’ll go over everything you need to know about everything that’s included, as well as the benefits and drawbacks, and cost. So read on to learn more!

What is My Investing Club?

My Investing Club is a private, members-only club for people who want to learn about and make money from investing in the stock market. They offer online courses, a community forum, and live coaching calls with investment experts to help their members achieve their financial goals.

They believe that anyone can succeed in the stock market if they have the right education and support. That’s why they offer a variety of resources to help their members learn about investing, grow their knowledge, and make money through smart trading strategies. They also provide access to experienced coaches and mentors who can help guide you on your path to financial success.

MIC is home to more than 1,500 traders who have already experienced success in the markets. With a top-shelf education and mentorship that’s second only to none, this community will help you get started on your trading journey today!

my investing club reviews

The Founders

Founded by industry veteran Bao Nguyen (@modern_rock) and the young but talented Alex Temiz(@AT09_Trader), My Investing Club is run with a real focus on helping other traders. There’s not just passion for success here – all aspects of your experience are designed so that you can become successful too!

Community Details

Founders: Bao Nguyen (@modern_rock), Alex Temiz (@AT09_Trader)

Type: Membership site

Founded: 2018

Style: Day trading

Inclusion: Chat room, Video tutorial library, Webinars, DVD courses, Couching, 24/7 support, Meetups, MIC Archive, Learning resources

Memberships: Annual, lifetime

Members: 1,500+

my investing club cost

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The My Investing Club Reviews

Investing can be a great way to grow your money and reach your financial goals, but it can also be complex and overwhelming. That’s where investing clubs can come in handy – they offer members the opportunity to learn about investing together, make better investment decisions, and achieve their goals faster. If you’re thinking of joining MY Investing Club, read the following!

Of course, with the lifetime membership offered through The Empirical Collective, My Investing club can’t come close to the value they offer.

But if let’s look at what they do offer as they try to be the best stock options advisory service out there.

What’s Included in the Membership?

My Investing Club offers subscribers a tonne of educational material such as video lesson libraries that cover trade reviews and tutorial videos, and live webinars or DVDs for those who prefer to learn on their own time rather than during the session without interruption from others like them in attendance at one event.

MIC has two different membership levels, the annual and lifetime subscriptions, which come with extra benefits depending upon which option you choose: Click here to check the price and join.

It’s fantastic that MIC has multiple membership levels to suit different budgets, but it’s crucial to understand the differences between the annual and lifetime membership options. Aside from the pricing, each membership plan has its own set of member advantages, which we’ll go over in more depth below.

 

Annual Subscription

The yearly membership plan includes access to the chat room, video collection, DVDs (including Jumpstart Accelerator), weekly Q&A, webinars, meetings, and the TAB program (trader accountability buddy). One-on-one mentoring phone conversations, weekly live trading recap videos, access to the MIC Archive, free admission to MIC events, personalized trade evaluations, and big cap/options methods are also available.

Lifetime Subscription

The lifetime option of MIC’s premium membership plan offers the best overall value because you only have to pay once and gain additional VIP advantages. Everything that yearly members get plus live trader clinic webinars with Alex and Tosh, early access to new videos, early VIP admittance to MIC events with reserved front row seating, and group mentorship are all available to lifetime members.

The Live Trading Chat Room

The My Investing Club chatroom is hosted on Slack, and the channels are neatly organized to make it easy for traders of all interests. In addition, there’s a newsfeed channel that shares real-time breaking headlines, as well as many other specialized areas where you can find what you’re looking for, like blue-chip stocks or options trading – if those types interest YOU!

The chat room atmosphere is quite friendly and supportive, with new members being welcomed into the community. There’s even a TAB (trading accountability buddy) channel where you can pair up with another trader to help keep your discipline!

The Video Library

With more than 750+ videos and an easy-to-use search feature, the My Investing Club video library is your number one resource for any investor looking to learn about investing. Topics range from in-depth training on mechanics or trade recaps that will help you understand what’s happening with markets right now.

The video library is now excellent, but it will continue to improve over time as new videos are added weekly. The following is a brief list of the subjects discussed:

  • Trader clinics
  • Trade recaps
  • Live trading footage
  • Webinars
  • Options
  • Tax planning
  • Fundamental analysis
  • Tape reading
  • Hotkeys
  • In-depth tutorials on MIC trading strategies (first bounce, VWAP reclaim, first red day, first resistance, death line, etc.)

The Trading DVD’s

My Investing Club offers a large range of DVDs as part of their monthly subscription. Currently, the following DVDs are available:

  • Trading Fish Academy
  • Trading Basics with Joe Kelly
  • MIC Jumpstart Accelerator Course
  • Fundamental Analysis Series with Chicago Trader

Learning Resources

My Investing Club members have access to a range of downloadable learning resources, including PDF guides and checklists. Most of the downloads are accompanied by detailed tutorial videos that explain exactly how these resources can help you become more successful with your investing strategy!

Webinar

My investing club members also have access to regularly scheduled webinars covering trading strategy, risk management, and much more.

One-on-One Mentoring

What sets My Investing Club apart from other chat rooms and day trading communities? The one-on-one mentoring! You’ll have access to veteran traders who are eager for success just like you, with personal coaching from Bao on how he made $1.4 million in a single day (and more). It’s impossible not to feel confident after all this when it comes time for your trades. We know what matters most is having someone there cheering us along the way.”

Mentoring is offered in many different formats to members, including scheduled one-on-one calls (available five days per week), weekly group webinars where you can get questions answered 24/7 via DMs, and more.

Member-Only Meetups

The My Investing Club has a trader meetup every month to get together and network. If you’re an Annual or Lifetime member, there is no cost for this event. There might not be any more in-person meetings until things calm down regarding the pandemic (which we hope isn’t too long).

 

MIC Archive

Lifetime and Annual MIC members also get full access to the MIC Archive – a searchable database containing more than 500k chat room posts from October 2018 onward.

MIC My Investing Club Reviews Pros And Cons

Pros Of Joining My Investing Club

There are many pros to joining My Investing Club, including:

  • Learning from others – One of the best ways to learn is to talk with others who have experience in the area you are interested in. By talking with others in an investing club, you can learn a great deal about what works and what doesn’t when it comes to investing.
  • Building relationships – Another great benefit of being a part of an investing club is getting to know other like-minded individuals who share your interest in investments. This can be a great way to build lasting relationships and networking connections.
  • Pooling resources – When you join an investing club, you have the opportunity to pool your resources with others in the industry.
  • Opportunity to learn from experienced traders; for example, Bao Nguyen has made millions of trading OTCs.
  • Daily webinars are held to keep members informed and answer their questions.
  • The material of the membership is quite well-organized. Compared to searching for this knowledge for free online, video lessons and downloadable resources will save you a lot of time.

Cons Of Joining My Investing Club

There are a few potential cons of joining an investing club:

  • If you’re not careful, you could end up over-investing in riskier ventures that may not pan out.
  • There’s a chance you could miss out on unique opportunities if everyone in the group is investing together.
  • Clubs can be distracting, making it difficult to stay focused on your personal investment goals.
  • Overall, the prices are high, and you should only invest if you have at least $10,000 to trade.
  • There is a greater emphasis on short selling, although there are materials available for long-biased traders. Shorting stocks is not something that everyone is comfortable with.

 

my investing club lifetime membership

Frequently Ask Question (FAQ)

How do I open an investment club account?

You can open an investment club account with various financial institutions, such as Charles Schwab, Fidelity, or Vanguard. Each institution has its process and set of requirements for opening an investment club account, so you’ll need to contact them directly to find out more information.

In general, you’ll need to provide your contact information, the name of your investment club, and the name and contact information of the person who will be responsible for managing the account. You may also be required to provide proof of your identity and your club’s incorporation documents.

How do you cancel Myinvesting club?

If you’re looking to cancel your investing club, you’ll likely need to get in touch with your club’s treasurer or other administrators. They can help finalize the cancellation process and notify all members. Depending on your club’s bylaws, there may be a waiting period before the cancellation is finalized or certain funds are distributed. As always, it’s best to consult with an attorney if you have any questions about canceling your investing club.

Are investment clubs the best idea for traders?

There are pros and cons to investment clubs. On the pro side, they can provide a social outlet for those who enjoy investing, as well as a forum in which to learn about investing. They can also offer the potential for better returns on investments, as members may be able to share information and strategies that they would not otherwise have access to.

On the con side, investment clubs can be difficult to manage effectively, and disagreements among members can lead to poor decision-making. In addition, there is always the risk that a club may become embroiled in a lawsuit if things go wrong with an investment. For these reasons, it’s important for anyone considering joining or forming an investment club to do their homework first.

How does an investing club work term?

There are a few different types of investing clubs, but they all follow a similar format in general. Members regularly contribute a set amount of money to the club and then use that money to invest in stocks, bonds, or other securities. The club typically meets regularly (usually monthly) to discuss their investments and decide what to buy or sell.

The benefits of investing in a club include pooling resources to get exposure to more investment opportunities, getting help from others who have more experience with investing, and learning about the markets from others in the club. However, it’s important to note that some risk is involved, as investments can go up or down in value.

Do I need an EIN for an investment club?

Whether you need an EIN for your investment club depends on the specific circumstances of your club. Generally speaking, if the investment club is not a corporation and will not engage in any business activities, you do not need an EIN. However, if the club engages in any business activities (such as selling goods or services), you will need to obtain an EIN.

If you are unsure whether or not your investment club needs an EIN, it is best to speak with a tax professional or the IRS directly. They can help clarify whether or not your specific circumstances require an EIN.

Do investment clubs pay tax?

Investment clubs are not taxable entities. However, the income and losses of the club must be reported on the individual members’ tax returns. Each member is taxed on their share of the club’s income, whether or not they received any cash distributions from the investment club. Losses from the investment club can be used to offset other income on the individual’s tax return.

What is lending club investing reviews?

There are a lot of different opinions on Lending Club investing, with people generally falling into two camps: those who love it and those who hate it.

The people who love it tend to appreciate the high returns they’ve achieved, while the people who hate it complain about the high levels of risk involved.

Overall, Lending Club investing is considered a high-risk investment, so you should only invest money you’re prepared to lose. Do your research before deciding whether or not this type of investment is right for you.

How to start an investment club?

To start an investment club, you’ll need to first come up with a plan and set some ground rules. Here are a few things to think about:

  • How often will the club meet?
  • Who can join?
  • What kind of investments will the club make?
  • How will decisions be made?
  • What fees will be charged?

Once you’ve answered these questions, you’ll need to create bylaws and file them with your state. You may also need to register with the SEC as a “club dealing in securities.”

Once everything is set up, it’s time to start investing! Make sure everyone in the club is on board with the plan and then get started. Good luck!

Investing in Options: A Beginner’s Guide

Investing in Options: A Beginner’s Guide

What direction, how much, and when will the stock price change? These are all questions you need to know in order to successfully trade stock options.

Of course, you could skip all that and just follow the trade alerts (up to 95.918% trade win rate!) that The Empirical Collective sends out.

Stock options trading is more complicated than stock trading. Your broker will fulfill your order at the current market price or a price you select as long as you specify the number of contracts you desire. To create a trading account for options trading, you’ll need to have some knowledge of tactics that are a little more sophisticated than trading stocks.

A step-by-step guide to options trading

Open a trading account for options

Trading options require a certain level of expertise, and because of this there are a few extra requirements before you can get started. Creating an options trading account is more expensive than opening a brokerage account for stock trading. When it comes to options trading, brokers want a little more information about the person they’re dealing with before they permit them to open an account.

To analyze the expertise, knowledge of risks, and financial preparation of potential options traders, brokerage companies conduct screenings. An options trading agreement will be used to obtain broker clearance for these facts.

(Please note: The requirements can vary from broker to broker and will depend on the trading account and options trading level you’re applying for. For a basic options trading account, some brokers only require a little extra capital in order to approve your account.)

Some brokers require you to supply your:

  • Aims in investing. Income, expansion, preservation of capital, and speculative activities all fall under this category.
  • Experience in trading. The broker needs to know how much you know about investing, the length of time you’ve been trading stocks or options, and the number of your trades.
  • The specifics of your financial situation. This can include how much cash you have on hand, your annual income, overall net worth, and information about your job.
  • Choosing the trade set ups. Some brokers will quiz you on your understanding of options. For example, they may ask you to explain a  spread, a call, or a put. They may also ask you the difference between covered and naked options.

The broker normally provides you an initial trading level based on the degree of risk you indicate in your responses (typically 1 to 5, with 1 being the lowest risk and 5 being the highest). You’ll need this if you want to trade in specific types of options.

You need to screen your broker!

Choosing a broker to trade options with is the most critical decision you will make. For investors who are new to options trading, finding a broker that provides the tools, information, guidance, and support you need is critical.

Decide whether to purchase or sell certain options

Call options are contracts that allow you to buy a stock at a specified price (the strike price), but you aren’t obligated to do so.

An option to sell shares at a certain price before the contract expires is known as a “put.” (For more information on trading options, you might want to see our free course on how to find stocks that have the potential to explode higher in price.)

The type of options contract you choose will be determined by the direction you predict the underlying stock to go in.

You would buy calls if you believe the stock price will increase or puts if you think the price will decrease.

You can purchase both pus & call options in the same transaction.

If you think a stock will remain at a certain level, you can also sell options.

Predict the strike price of an option

An option contract has to be “in the money” for it to have any value.

For this to happen, you have to choose a price level that you think the stock will be above or below.

This is called the strike price.

In the case of calls, the price of the stock must be above the strike price for the contract to be in the money.

For puts, the price of the stock must be below the strike price for the contract to be in the money.

If you sell a call or a put, then for either to be in the money, the above scenarios would be reversed.

The amount you pay for an option contract (referred to as the premium) includes both intrinsic and time value components. If the stock price is higher than the strike, the intrinsic value is the difference between the strike and the share price. A stock’s “time value” is based on its volatility, the expiration date, and interest rates, among other considerations, as well.

Decide on a time range for the options

Options contracts have a designated expiration date that identifies when you can exercise the option. You can’t just choose a date out of thin air in this case.

And when you look at the list of available options (called option chain) you can see all the available time frame options.

Options contracts are classified as either American or European based on when the option can be exercised. American options can exercise at any time before the expiration date, but European options can only exercise on the day of expiration. Due to its greater freedom for the option buyer (and more risk for the option seller), American options often cost more than European options.

Days, weeks, months, and even years are all possible expiration dates. The most experienced options traders avoid trading daily and weekly options because of their high level of risk. Monthly and annual expiry periods are best for long-term investors. Your investment thesis will have more time to play out with longer expiration dates. But this longer expiration period also means that the options will be more expensive to purchase.

Even if the stock falls below the strike price during the contract, so long as there is still time left before the expiration date, the option will still have some value. (Because there is still a certain amount of time left for the trade to fluctuate.)

 

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Tired of missing out on the huge gains in the market?

Wishing you knew which trades had the best odds of succeeding?

Would you like to know EXACTLY how & which trades to place WITHOUT having to spend years learning?

Well now you can let our Team of Trading Experts & Exclusive AI Trading Software do the work for you!

Click Here to Start Making Bank With Our Option Trade Alerts!

PS – Our trades have an average win rate around 94% and have returned QUADRUPLE digit yearly returns.