Chris –Verghaeh is now promoting his new Weekly Options program W.I.N claiming you can make 1000% by trading weekly options. You will find all of the review websites are either his or a few affiliate promoters. So before you jump in, here is my analysis from personal use.
A few years ago I purchased his Pulse Options program because it was reasonably priced and looked like it had potential. I took the weekly newsletter and proceeded to trade. His newsletter gave you five option trades weekly and I proceeded to trade them with little luck. I spent an inordinate amount of time trying to figure out how he picked them and when to trade them.
As you know I have been trading futures indexes for over twenty years and marketed the Futures Trading Secrets Course until it was stolen by the bad guys. The course still works and has for the past 16 years, Just do not get sucked into the free version which is out of date. Back to Chris and his program. I ended up getting a full refund, because he never answered any of my emails, never called me nor offered any support. I am afraid you will get the same treatment. He often bragged about dealing with, calling and emailing his students, yet never once contacted me. If you look at his current promotional website for references to his Pulse Option training program you will see a lot of disappointed student comments.
Do not get sucked in by the Yahoo Option statistics he shows. I am afraid they have no relation to real and accurate trades. What I found with his course made pretty good sense. You bought OTM options hoping they would go ITM based on events or earnings reports, by spending “pennies to make dollars”. He would show great reports from Yahoo finance on a daily move of hundreds and even thousands of percentage gains, which seemed to be disingenuous because your trades never turned out that way. In his newsletters he spent an unusual amount of time talking about his family problems. There was nothing that told you any methodology to successful trading.
This is not sour grapes on my part, only my six month experience. Here is what I learned about trading weekly options and I have made some progress in finding the winners.
- All options need to have strike prices of a dollar or fifty sense and remember you trade the underlying. Both LVS and GS meet this criteria of daily movements bigger than a 50 day ATR
- Pick only a few stocks and ETFs that you can watch closely and remember: Patience and Discipline.
- You can trade the big stocks with larger strike price spreads, just make sure the spreads work out to 1% or less
- Trade the hot stocks if you can. Biggest Movers or Gappers are good choices. I use TC2000 scans to find them.
- Trade after gaps not before with a straddle or strangle if you cannot predict price direction.
- Best trading times are Wednesday or Thursday at market close and hope for a jump overnight.
- I chart both the underlying stock or ETF and their option on Think or Swim.
- My charts use several unique indicators. I cannot fathom how you trade without charts as he suggests
- Using OTM options at 1, 2, or even 3 out is OK. Just try to get a delta of 30 or higher
- Remember that you are looking for Penny options to make Dollars.
- If you are lucky like I was you will make $4.66 on a $0.06 cent option.
- My hit rate has never been over 40% so expect a lot of losers along the way to a big hit.
I will setup a webinar on how to set Think or Swim for the easiest way to chart these options.
About Bill
