Trading options with CANSLIM stocks

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nwoptions

Hi guys, William O'neil (the founder of Investor's Business Daily and the author of How to Trade Stocks) said that CANSLIM stocks typically go up an average of 20% over a median time of 13 months in a bull market.

Knowing this info, do you mind sharing some ways I could make money using options with CANSLIM stocks?

Eg could I buy an ITM LEAP call and sell an OTM LEAP call for a long-term bull call spread once the stock breaks out of its base?

The OI and volume on the leaps don't look terribly great.

Any thoughts?
 
nwoptions said:
Hi guys, William O'neil (the founder of Investor's Business Daily and the author of How to Trade Stocks) said that CANSLIM stocks typically go up an average of 20% over a median time of 13 months in a bull market.

Knowing this info, do you mind sharing some ways I could make money using options with CANSLIM stocks?

Eg could I buy an ITM LEAP call and sell an OTM LEAP call for a long-term bull call spread once the stock breaks out of its base?

The OI and volume on the leaps don't look terribly great.

Any thoughts?
More...

Your timing and instrument selection would need to be absolutely perfect in order to even overcome transaction costs and spreads.

But I suspect you already know that.
 
If you like the stock then sell puts. Then buy calls with the proceeds. Free speculation. Worse case scenario you own the stock you like at a cheaper price. If you then do not want the stock turn the wheel (Google it) and sell calls.
 
Take a look at the performance of CANGX and decide for yourself if thats what you want to do for a trading strategy. It is a guaranteed fast path to slim your wealth.
 
nwoptions said:
Hi guys, William O'neil (the founder of Investor's Business Daily and the author of How to Trade Stocks) said that CANSLIM stocks typically go up an average of 20% over a median time of 13 months in a bull market.

Knowing this info, do you mind sharing some ways I could make money using options with CANSLIM stocks?

Eg could I buy an ITM LEAP call and sell an OTM LEAP call for a long-term bull call spread once the stock breaks out of its base?

The OI and volume on the leaps don't look terribly great.

Any thoughts?
More...
I personally would be satisfied with an average 20% per year return.

But if you want more and know these CANSLIM equities are going up an average of 20%, you can:

1. Buy more on margin.

2. Sell puts.

No need to do any fancy spreads, butterflies....
 
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