Profit from a big move in the underlying stock, in EITHER direction with the use of "straddles." This strategy is structured to help profit from the unexpected big market moves and volatility explosions that devastate most options traders.
- Profit from big market moves using Straddles
- Simple to understand and easy to execute
- Profit potential is theoretically unlimited
Discover How “Straddles” Can Help You
Accumulate Wealth in Today’s Volatile Market Conditions
If you’re tired of getting wiped out by sudden reversals, “flash crashes”, and overnight news, Schaeffer’s Volatility Trader is for you. Volatility Trader positions you to take advantage of unexpected catastrophes by relying on an option trading strategy known as straddles.
- Receive an average of four to six easy-to-execute straddle recommendations every month! You’ll receive an email containing both an easy-to-understand trade recommendation and a trade commentary link. Just click the commentary link for greater insight on why we think this recommendation is poised to deliver gains. This link will give you immediate access to the trade commentary and graphs, and also technical, sentiment, and fundamental indicators and parameters. So, you’ll always have the information you need – showing you exactly why we expect the trade to deliver.
- Volatility Trader targets trades poised for potential of 100% gains on every recommendation
- Limit your risk by closing trades if they are not working by the time they are half way to expiration
- Focus on quicker returns with holding periods between two and six weeks
- Your FREE online trading handbook, complete with Money Management Guidelines, provides everything you need to successfully trade Schaeffer’s Volatility Trader!
- Schaeffer’s Alert Service Command Center. Our online Command Center provides you with unmatched control over your own investing destiny, allowing you to track all of your trades easily online and see your open positions and trade status.
Full Catastrophe Trading
How to Survive – and Even Thrive – in a Market Where:
- Computer jockeys and wildcat traders create instant “flash crashes”...
- Huge rallies arise instantaneously from the ashes of devastating declines...
- Overnight news from Greece, the Middle East, or China spreads panic like wildfire...
- And the traditional technical tools no longer apply...
Experienced traders know that the price action in the stock market today is dominated by a bunch of computer jockeys and wildcat option traders.
You can either gripe and moan about it… or you can accept it, and design your option trading strategies accordingly.
The fact is, we are facing a new “market movement paradigm” and many technical tools no longer work as they did before.
Let’s say a stock “breaks out” and makes a new 52-week high. In the old paradigm, you would have jumped aboard in anticipation of a big follow-through rally.
Do that today, and you could end up watching in horror as the “mean reversion trade” so favored among the computer jockeys crushes the stock and your “breakout” turns into a “breakdown”.
Or, how about that extremely “oversold” stock?
In the old paradigm, excessive selling would have cleared out the overhead resistance, and you could have ridden that “oversold bounce” to big gains. Today, excessive selling is just as likely to cause the stock to spiral down even further!
Why? Because over-extended put sellers rush in to establish new short positions in the stock to avoid being wiped out on their short put positions!
So what do you do?
Do you throw in the towel and avoid these increasingly common situations where the old rules no longer apply? Do you watch helplessly as the “big boys” yank stocks around in a game where they make up the rules for their own benefit?
Or can you profit from stocks that are primed for big moves, but where the ultimate direction of these moves is more uncertain than ever before?
You can – if you know the secret to making money in turbulent market conditions. What is it? It’s straddles!
The Secret to How Straddles Can Potentially Make Money
Whether the Market Goes Up…or Down!
As you may know, the straddle strategy involves the simultaneous purchase of a call and a put with the same expiration month and strike price on the same stock.
Using IBM as our example, with the stock at about $128, you could buy the August 125 call for $5.50 and the August 125 put for $2.95. So, the total cost of the IBM July 125 straddle was $8.45 ($5.50 + $2.95 = $8.45).
You would profit from buying this straddle if IBM is trading above $133.45 (the 125 strike plus the total premium of $8.45) or below $116.55 (the 125 strike minus the total premium of $8.45) by August expiration.
If IBM were to rally by about 11% to $141.90 over this period, your call option would appreciate sharply to $16.90, or double the purchase price of the straddle.
And, if IBM were to decline by 13.5% to $108.10, you’d still double the purchase price of your straddle because, under this scenario, your put option would appreciate to $16.90.
Should the position make a big directional move early in the life of the trade, there is the potential for an additional option purchase to cap potential losses and/or lock in profits.
5 Reasons Why Straddles Are the Best Way to Play
- Straddles are structured so you can profit from the unexpected big market moves and volatility explosions that devastate most options traders.
- With straddles, you cannot be put in a major loss position and be shaken out of a trade in its early stages, due to market volatility or adverse price movement.
- Your “cost to play” straddles is modest, so you can easily afford to diversify by stock and by directional bias, to benefit from a number of different market scenarios.
- Straddles are simple to understand and easy to execute.
- With straddles, your profit potential is theoretically unlimited. But your losses can be strictly limited with little concern about intraday volatility and day-today price gaps.
With Schaeffer’s Volatility Trader, you can use straddles to turn volatility explosions to your advantage.
The Secret to Full Catastrophe Trading
The beauty of straddles is that you can potentially profit from a big move in the underlying stock, in ANY direction. So, instead of getting wiped out by sudden reversals, flash crashes, and breaking news stories, you can turn these market catastrophes into significant returns.
And Schaeffer’s Volatility Trader is designed to do just that. It lets you take advantage of these large moves – regardless of whether they play out to the upside or downside – and gives you an opportunity to turn them into big profits.
So why not join Schaeffer’s Volatility Trader today and start turning stock market catastrophes into profit opportunities!
In other words, with the straddle strategy investors can actually profit from volatility, regardless of the direction in which this volatility plays out!
That’s why I believe straddles are one of the best ways to play this market for the remainder of 2012 and beyond!
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