I reviewed a weekly options program last week. In that review I covered many of the principals necessary to successfully make these pure Gamma Trades. Let me give you a few more hints on what to trade and why. These are not the only things to trade, but you get the idea.All of the following list have these criteria. Strike prices ever 0.5, all are multiples of financial ETFs or Interest rates.
- FAS Triple Bull Financials
- FAZ Triple Bear Financials
- TLT I Shares 20 Year Treasuries ETF
- TBT Ultra Short Lehmann 20 Year ETF
- TNA Small Cap 3X Bull ETF
- TZA Small Cap 3X Bear ETF
The key is find trading vehicles with close strike prices that could be crossed multiple time in one day. Be sure to review the criteria in my previous post on WIN. You can always trade the hot stocks like AAPL, GOOG, PCLN, etc but your will risk more money with less chance of multiple 100% wins.
As I mentioned, I have Think or Swim (TOS) settings for workspaces, indicators and layouts available to chart the underlying as well as two OTM put and call options charts. Contact me at capital@ventureplan.com if you have a serious interest. First you need to analyze the underlying and then the option.
In the following case, the option went from 0.17 to 0.62 in one day which was a 264% return in one day. So risking $170 to make $620 seems like a pretty goo deal. Sorry the charts are so small…..Underlying TLT
Then the option in the 284% example above TLT Call Option : Date is 5/27/14
To expand on the images, click on them.
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