Weekly options offer a great opportunity for an investor to make money if he/she uses the right option trading strategy. Since weekly options have a fast time decay period, one would need to choose an option strategy that makes time decay and ally. The best strategy out there would be a credit spread.
We have put together a “Weekly Option Strategy” that combines read types of credit spreads together: Bear Call Spread; Bull Put Spread; Iron Condor.
Using these three strategies together, it is possible to earn from 1% to 6% per week conservatively, safely, and with high accuracy.
Using a combination of fundamental and technical analysis a trader is able to determine the best type of trade to make in any given week. It changes every week!
This type of trading is considered “positional trading.” The investor picks a position of high accuracy in the weekly trade and takes with the market gives that particular week.
Some weeks the market might only give us 1%, but sometimes the market might be generous and give us 6%. In positional trading one does not chase after money but traders for accuracy. It is possible to keep one’s winning percentage well over 90% when done correctly.
As with all option trading, there is risk involved. The amount of risk is determined by the “risk management” approach that the investor makes. If done properly losses will be small when they occur. Make no mistake everybody loses, the key is learning how to keep losses as small as possible.
Not only does the success of this type of strategy call for good risk management and picking a good position, but an investor also has to be willing to not make a trade. Sometimes the market will not be favorable to make any type of trade in a particular week. When this happens the investor has to be willing to sit out of the market. It doesn’t happen often but when it does happens important not to risk trading in unfavorable conditions.
There are options signals that an investor can learn that will reveal how successful a trade can be and how much money an investor should put into that particular trade that week. When the signs are favorable, the probability of a successful trade is very high. When the signs are not favorable, investor just does not make a trade.
I would encourage investors interested in using options to grow a portion of his/her portfolio to explore our “Weekly Option Strategy” as a viable tool for option trading. The process and strategy isn’t hard and one does not have to sit in front of the computer all week, you can be in and out of the market in 2 days on a weekly basis. It is a great alternative for option traders who don’t want to keep their money in the market for weeks on end trading monthly options.
Find out more on this weekly trading system at http://optionsweekly.org/