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Replies to #193 on S2 Option Trader

SyndicateTwo

07/04/09 9:56 PM

#194 RE: Bacon-eggs #193

If you have BC, then this is what I do and it's worked out pretty well so far....

First, George Lea, if you watch that video they made of him, basically says he only does trades using the 3 month log chart and trades off the high/low extremes. If you noticed, the new 4.6 version added not only search wizards to find them, but also the sorting ability to filter them out. Pretty cool tool. I'm still playing with it.

However, you have to keep that seasonal stuff in mind, too. If you find a stock say at an upper extreme of 99% or more on a 3 month, then see the seasonal pattern is to move still higher, it's a hard trade to make. So pass. Or go small.

However, keep this in mind, we are just beginning earnings season. This is where you get monster 300% moves in options. I'm targeting many setting up and these setups change week to week before they actually enter reporting dates. The next month is going to potentially bring us some sizable moves because BC lets us see into the past as to what they typically do on reports this time of the year. So, I would focus mainly on ER stocks using the software.

The MSM trade the other day was an example of just that.