Potential Triple-Digit Gains Every Month

Editor’s Note: Welcome to your first Weekly Options Corner! You’ve signed up for this because you’re interested in learning more about options. There’s no better teacher for you than Chartered Market Technician Chad Shoop. He’ll guide you into becoming an options trader — making outsized gains while the market moves just 1% or 2%.

We’re passionate about bringing you the best trading strategies in the market. This Weekly Options Corner is a part of that.

And we want to hear from you! What do you think of our first issue? Email us at WinningInvestor@BanyanHill.com. We may publish your feedback in a later issue. — Annie Stevenson, Managing Editor, Winning Investor Daily


My goal is to show you that triple-digit gains every month are not that hard to come by.

That’s not an outlandish promise. Over the last four years, I’ve averaged near one triple-digit gain every month in Quick Hit Profits.

Now, I want show everyone how it’s done.

In the next few weeks, we’ll be laying out the fundamentals of trading options.

We’ll break down everything from how to grab triple-digit gains, to how to find the perfect option and when you should pass up on a possible opportunity.

Today, I want to show you how the power of options can lead to potential triple-digit opportunities.

And I’m going to prove that finding one a month isn’t impossible.

It all starts with the most basic option trade there is — buying call options.

Over the last two months, call options have delivered my readers a shot at gains of 124% on Apple (Nasdaq: AAPL) in 11 days, 142% on Pfizer (NYSE: PFE) in 34 days and a 200% gain on Facebook (Nasdaq: FB) in 27 days earlier this week.

You can see why this is where you want to start making money using options.

Stocks Head Higher 75% of the Time

The first thing you need to know about options is how they make money.

Call options are the most straightforward and easy-to-understand approach to options that exists.

And it doesn’t get any easier to understand than this: As a stock rises, call options go up in value.

Remember that. For option traders, this is almost all you need to know.

There are a lot of nuances with options that can be overwhelming. But, when you boil it all down, it really is that simple.

Let’s put it this way…

Stocks are in a bull market, meaning they are climbing higher, 75% of the time. Bear markets, periods where stocks are falling, are sharp but usually short lived.

Call options are nothing more than a bet that the stock you picked will rise over a certain period of time.

If you are right, that stock will go up during the time you expected. Then, you are in a position for a potential triple-digit gain.

And since stocks are rising most of the time, you have history on your side to ride the bull market in stocks.

By focusing on just one type of options — call options — you can quickly grasp the ins and outs of a trade so that you understand exactly what’s going on each time.

It’s your best approach to grabbing consistent triple-digit gains.

Let’s Increase Our Chances for a Potential Triple-Digit Gain

You want to be timely. Options have expiration dates (which we’ll talk about in a later weekly update). That means you need to pinpoint the right time to jump in to capture a move in the stock.

If you have been reading Winning Investor Daily for a while, you know what I’m about to say next. You want to look for a mispricing in the stock.

That’s a spot where the stock is low, but the tailwinds are so powerful that the stock has no choice but to continue climbing.

The bottom line is that you want the move of the stock to be 10% in just a few months’ time. I’m not talking about one day. You don’t want to gamble on an earnings announcement or any other event.

Once you find this, then you are ready to buy an option that doesn’t expire until after that move is expected to play out. Remember, a small move in a stock can translate to triple-digit gains in an option.

I use this in my Quick Hit Profits approach to finding excellent opportunities every month.

I put together a special options training that dives into more of these concepts a bit further. It has a sales pitch at the end, but overall, there’s a lot of content about my approach in the video that you will find beneficial.

Click here to watch it for more options content.

We’re excited to go on this journey with you in the Weekly Options Corner. Options are the most powerful tool in the stock market, but so many investors don’t fully understand them.

We are going to establish the fundamentals behind trading options over the next couple of weeks. Like today, we showed you how to use call options to potentially grab 100% gains every month.

Next week I’ll talk about how you can make money in bear markets with the only other type of option — put options.

Then we’ll dive even deeper into options strategies and concepts.

But, my Weekly Options Corner is ultimately for your benefit.

That’s why I want to hear from you.

You’ve taken the step to sign up and receive my Weekly Options Corner, where we can take a deeper dive into understanding options and how to spot potential triple-digit gains.

But I’d like to know what you want out of these weekly emails. Are you looking for anything in particular, or just want a better understanding of options?

You can send us an email at WinningInvestor@BanyanHill.com.

I’ll see you next week!

Regards,

Chad Shoop, CMT

Editor, Quick Hit Profits

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