Getting a double return in options is definitely the golden goose of option trading. However, it can only be done with disciplined trading and a very clear understanding of the relationship between the pattern you are trading and the option you are buying.
When choosing an option look for the out of the money, with the maximum 10% move on the stock for the option to double. Another important factor is that the percentage to double has to put the stock under the target price.
This past week I picked 2 option plays that had everything to do with "GAPS"!
Gaps usually represent important areas of support or resistance. A Gap Down will indicate different situations based on the context in which it was formed. A Gap Down in a downtrend may indicate a previous level of support has been broken and now forms a resistance level. A Gap Down in an uptrend may indicate an end to, or a reversal of, the prior uptrend. Gaps provide an indication of a financial instrument's SHORT-TERM outlook.
The Option Trade Was Based On The Gap 'NOT" Filling And A Re-Test Of The Highs
BRCM Option Trade Method
AKAM Option Trade Method (That The Gap Would Fill To The North)
Profit Alert AKAM and BRCM Options Only Up 84% and 100% Percent Book Gains Fri, 30 May 2008 14:09:58 ET
Dear John,
Thanks again for yet another profitable week in options. A double in BRCM & several other short term options certainly helped make this May the second best month this year & my best May in 3 yrs. If I had joined a few months earlier last year I might be looking at two great Mays back to back.
Get some well deserved rest .. you put other good newsletter & market gurus to shame, with the amount of help & time given to your members. I've read many market newsletters ... for my money T123 is the best place to be.
All the Very Profitable Best, Don P.
Once again JL I have booked profits on the options plays. BRCM and AKAM were 100% and 90% respectively. Thanks for all you do....You da Man !!!!
Atti
Yes John
You da man
keep the options coming
BRCM profit 82% woooohooowooohooo
gerald
Great Option Play in AKAM, took 90% in just a week. Love these plays.... keeps us going while We wait for stocks to hit targets. Thanks Again JL. Keep em coming!
flymojo
JL,
I wanted to thank you again for the fatastic profits in the options trading. Please keep them coming as appropriate.
Nice party bonus.
Ed
JL,
Thanks yet again!! 118% profit on the BRCM option today. I bought 5/20/08 and sold 5/30/08.
Although I have been buying in very small $$ amounts the compounding on these short term option plays is making a large difference in my account. Each time I am able increase the amount I use for the equal weighting. Whoopeeee!
Linda
YO JL
Who loves you man.............................I want to thank you once again, for all the option plays and words of wisdom. You keep proving all the so called experts wrong! The best thing I ever did was to join Trending 123, well maybe the second best thing. I also want to thank the great people in the trading room " traders helping traders". What you do to help us ,I have no words.
You raised the bar on customer service
CHEERS
ASJEFF
John I sit in the trading room all day and I really appriciate the option trades. I have 12 of your stock picks and I have been playing most of the option plays with very small amounts of money. It's nice having 50-200% gains in a week or so.
Thanks! I made 100% on BRCM and 75% on AKAM.
Ping
Thanks Jl,
Another profitable options trade on BRCM 100% ...... keep them coming...great addition to website!!!!!
JL
Great job on AKAM and BRCM options (banked profits 100% and 85%)
Bass
JL
I've taken every option trade (plus a couple sneakies) and it ain't lunch money, it's St. Maarten money. You Rock!
Eric
JL,
I would like to thank you again for giving us option plays. I know that options are a party bonus right now, and I hope that someday they become a permanent feature of the website. You make trading options easy with specific entry/exit points. I like the fact that the options are on existing portfolio stocks that way I'm already familiar with the stock/chart pattern. The profits I've made are really helping me grow my small account.
Thanks again,
Craig
John
Your options picks have been awesome.
Keep up the great work and no slacking off, ya hear. LOL
Cobra
This last 6 or 7 weeks has been the most "FUN" in the chat room since I have been here. The attitude of the people has improved greatly and I think a lot of the bitching moaning and groaning has been left behind. WHY? Because you have been throwing out these option plays and making it a fun thing ,then today after you closed the AKAM and BRCM you explained why you had gotten into them. Your understanding of how to READ a chart goes far beyond just connecting the dots and drawing lines. I just sit back and shake my head after you explain why you do things!!!
Again Thank You.
Donna
