Markets continue to push to new highs and the momentum is somewhat unprecedented but the real key is not what is up but what is down. The VIX (a gauge of expected volatility in the next few months) is down to the low end of its pre-covid range. This is more than just a simple indicator. It is a piece of data that is used to determine the price of options contracts. In simple terms, it shows that traders feel the market will move less than it did last month or the month before, or for the last year. But that represents the market as a whole and we clearly see individual stocks and even sectors of the making decent moves. This sets up cheaper options trades in a market that is producing enough movement for those trades to be potentially lucrative. With the VIX down, momentum solid, it sets up these trades that have a high probability of being winners. But now we add to that the sector rotation that is being brought on by rising inflation and higher interest rates and we see the opportunities grow even more. This is a climate where it is very possible to get into trades with good upside potential and risk that you determine acceptable. If you are looking for the best strategies to use right now or if you are looking at getting started in option trading, the invite to grab Chuck Hughes' book that went out earlier is the perfect next step. You can still access it here.
© 2021 Tradewins Publishing. All rights reserved. | Privacy Policy | Terms and Conditions | Contact Us Auto-trading, or any broker or advisor-directed type of trading, is not supported or endorsed by Legacy Publishing LLC. For additional information on auto-trading, you may visit the SEC's website: All About Auto-Trading, The information provided by the newsletters, trading, training and educational products related to various markets (collectively referred to as the bServicesb) is not customized or personalized to any particular risk profile or tolerance. Nor is the information published by Legacy Publishing, LLC (bLegacyb) a customized or personalized recommendation to buy, sell, hold, or invest in particular financial products. Past performance is not necessarily indicative of future results. Trading and investing involve substantial risk and is not appropriate for everyone. The actual profit results presented here may vary with the actual profit results presented in other Legacy Publishing LLC publications due to the different strategies and time frames presented in other publications. Trading on margin carries a high level of risk and may not be suitable for all investors. Other than the refund policy detailed elsewhere, Legacy does not make any guarantee or other promise as to any results that may be obtained from using the Services. Legacy disclaims any and all liability for any investment or trading loss sustained by a subscriber. You should trade or invest only brisk capitalb b money you can afford to lose. Trading stocks and stock options involves high risk and you can lose the entire principal amount invested or more. In order to avoid a conflict of interest, Trading Service recommendations were not executed by Chuck Hughes or his associates. The trade entry and exit prices (and resulting profit/loss) represent the price of the security at the time the recommendation was disseminated. Trading Service profits are not based on actual trades and have certain limitations. Since the trades have not been executed, the results may have under or over compensated for the impact, if any, of certain market factors such as lack of liquidity. Profits on some Trading Service option trades may be rolled over at expiration into the new option which will reduce the cost basis of the new option. If the cost basis of a new option becomes negative, then the new option will be assigned a cost basis of $1.00 as the percent return cannot be calculated with a negative cost basis. Legacy Publishing LLC makes no representations or warranties that any account will or is likely to achieve profits similar to those shown. No representation is being made that you will achieve profits or the same results as any person providing a testimonial. No representation is being made that any person providing a testimonial is likely to continue to experience profitable trading after the date on which the testimonial was provided, and in fact the person providing the testimonial may have subsequently experienced losses. The Chuck Hughes profit results are not typical. Chuck Hughes is an experienced investor and your results will vary depending on risk tolerance, amount of risk capital utilized, size of trading position, willingness to follow the rules and other factors. The Chuck Hughes profit claims represent the open trade profit results on the day the portfolio snap shot was taken for the PowerTrend Strategies. Open trade profits may have increased or decreased when the trade was closed out. Other strategies may not have been profitable during the same time period. Cash Payout trades receive cash credits from the sale of option premium. The profits for Cash Payout trades may be less than the cash received for the sale of the option premium. Past performance does not guarantee future results. | |||
|
No comments:
Post a Comment