Quote from hbiawos:
"No. The best way to make consistent money in options is to buy in the money, at the money, and out of the money Puts & Calls."
That's what I do every day on momentum stocks. Most of the time I just daytrade them and was able to turn $6k into $70k in about 2 and a half months. Recently, however, I'm off my game and have had a couple of really horrible drawdown days.
If you have time, please tell me a little about your methodology.
Thanks.
Hi hbiawos,
Without exposing my intellectual property, in a nutshell, my methodology revolves purely around volatility by looking for stocks that are exhibiting unusual behavior in their momentum, velocity and price bar structure. I then wait for the "setup" and then pounce on them like a cheetah attempting to milk them for much more than they were purchased before they lose their premium mark-up. I also do it without selling options. The way I do it though is quite different than the traditional option trader and it has being quite successful and beyond my expectations to say the least. However, I'm still a student in the science of volatility and market chaos. However, slowly but surely, I'm uncovering new applications in this exciting field to increase my bottom line exponentially and hopefully in the future assist other option traders. This is by no means an advertisement for my system (as I don't accept subscribers), but if you want to see the results of this ever evolving methodology, you can point your browser to www.collective2.com/go/optionstrader .