Video: Are You Riding the Cycles?

I just launched a new trading service, “The Power Cycle Trading Club.”  The following is a Trading Club video that members receive every trading day and it is just one of the many club benefits.

This video will take you through a very volatile trading day with my market commentary on market direction, trend shifts and trading ideas.

Video:  Market Cycles & Trades for “The Power Trading Club”

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If you want to learn a lot more about market cycles and trend trading then you will want to register below and join me on Thursday, April 24th for my free webinar on all this and much more.

Register for Webinar

My free webinars usually fill to capacity, so please register now if you want to attend.

To Your Success,

Larry Gaines
CEO and Founder
Power Cycle Trading

Video: Did You Catch This Key Reversal?

New cycles and trends have to start somewhere and one high probability chart pattern that can highlight a trend reversal is the Key Reversal, Engulfing Bar.

In trading there is no 100% sure thing but the “Key Reversal Pattern” is a high probability set-up, trend reversal pattern that is a must know for all traders and investors!

Video:  Did You Catch This Key Reversal?

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If you want to learn a lot more about market cycles and trend reversals then you will definitely want to join me on Thursday, April 24th for my free webinar on market cycles and trends.

Register for Webinar

My free webinars usually fill to capacity, so please register now if you want to attend.

To Your Success,

Larry Gaines
CEO and Founder
Power Cycle Trading

Video: Earning Big Profits Trading Earnings

 

Earnings Season provides great profit opportunities and great excitement.  Take a look at this trade and more.

Video:  Earning Big Profits Trading Earnings

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We had so many request for another Webinar on “How to Profit from Earnings Season Now” that we scheduled one more for:

Monday, April 14 at 8pm EDT

To Your Success,

Larry Gaines
CEO and Founder
Power Cycle Trading

Video: PCLN A Great Trade Set-Up!

As a trader your job is to embrace risk for the opportunity it provides!!

Based on my directional trading model, “The Power Cycle Trading System” and some key moving averages, plus a nice gap fill, this trade had some great potential for a nice OVER SOLD RALLEY??

Video: PCLN A Great Trade Set-Up!

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To Your Success,

Larry Gaines
CEO and Founder
Power Cycle Trading

A Tasty 36% from WFM in 2 Days

earnings option strategyHow can a quarterly “dividend” possibly pay 25 to 35% or more a quarter? Well, this proactive quarterly “dividend” does take a little more effort than just landing in your brokerage account, but not a whole lot more, especially given the opportunity.

The dividend landing in your brokerage account method works pretty well IF you have an investment account with several million dollars in it just for collecting stock dividends.

Let’s do the math on a $2,000,000 investment account: 2.00% of $2,000,000 means $40,000 a year paid as quarterly dividends. You can’t live on it, but you could take a pretty good trip.

But what if you could earn 20% on a $100,000 investment account (or money allocated to proactive investing) FOUR times a year? It sounds kind of embarrassingly crazy in this day of 2% returns, but that would be an 80% return a year. That’s twice as much income as the example above, $80,000 annually, with only 5% as much capital.

Now do I have your attention?

You may be thinking, that buying and holding the S&P would be less risky than proactive investing over a few days… Well, the pain that comes from buy and hold market corrections certainly lasts longer than a 1 to 4 day option earnings strategy, but keep reading.

What’s this strategy that requires a little more work but pays WAY more than regular dividends using less capital? In this post I’ll answer that question, tell you why it’s most lucrative during earnings season, and I’ll show you an example.

Additionally, I’m hosting a free webinar teaching this strategy and you can register here if you prefer webinar format.

First, this “proactive dividend”, as I like to call it, is using limited risk option strategies during stock earnings season.

Why is earnings season specifically such a great time for this strategy? Because you capitalize on a method that uses stock options, and just before earnings are released a company’s options are more expensive due to the uncertainty of earnings.

This may sound counter intuitive, but remember that more expensive is a bad thing when you’re buying…but it’s a very good thing when you’re selling; you do both in this strategy.

At this point, you may also be wisely thinking “But wait, isn’t it risky to buy a specific stock just before earnings because there’s more uncertainty leading to greater unpredictability?

And the answer is “Yes!” But there’s a solution to limit risk; you both buy an option AND sell an option because this protects you on the downside…which means your risk is limited. And who doesn’t want limited risk, especially after surviving the brutal stock market corrections of 2001 and 2008?

Another way risk is limited with this strategy is by having a shorter time frame…

Typical earnings trades only last 1 to 4 days, so your money is in a position for a short time. (You may have heard that short term investing is riskier than long term investing, but isn’t there more certainty in 1 to 4 days than there is over the next  year?)

A third way risk is reduced is by the fact that you are able to reach your profit objective with a fraction of the cost of buying a stock outright by using options…

With Apple over $500 and Netflix over $400, this is a huge factor for making money from these large successful companies.

 

At this point I have to say this: WARNING! It’s super important to remember that just buying or selling an option outright can have unlimited risk, so you have to know what you’re doing!!! Please don’t decide to jump into this if you don’t understand option basics and know the ways that options can have risk just as you would the stock market, the real estate market or any other place you invest!

Will every options earnings trade be a winner?

Nothing is right 100% of the time. You do need to be able to find the highest probability trades, or use a service that gives them to you. But with a high probability system, you can have a very high level of winners. For example, during last earnings season, of the 13 trades I sent members, 1 was a loser, so over 92% were winners.

Now, back to this earnings option strategy…

Let me show you just how it works. There are several methods to capture profits from these higher option premiums during earnings. Each method works best based on certain circumstances

I don’t like to spend a lot of time watching trades all day, so the method I use and teach most often involves almost no attention once the trade is placed.

Basically, it’s just 4 steps; you buy 2 options and you sell 2 options. Now, this may sound like a lot to do, but once you understand the method, you just use the same method over each earnings season.

So, it’s really pretty simple.

Here’s a trade I sent to members last month ahead of Whole Foods Market (WFM) announced their earnings:

Step 1:

Buy 1 WFM $55.50 Call -$210

Sell 1 WFM $58.50 Call  $100

Net Cost                           $110

Step 2:

Buy WFM $55.50 Put      $197

Sell WFM $52.50 Put      -$87

Net Cost                           $110

Total Net Cost                  $220

_____________

Profit                         $300 Spread ($58.50-55.50)

Less Trade Cost    -$220

Net Profit                    $80

Bottom Line: This earnings option strategy made $80 per contract before very small commissions. The maximum potential loss was $220 per contract, which is the total amount of capital in the trade per contract.

This trade was in place 2 days requiring almost no attention.

Example of an $1100 Investment in this real trade sent to members last month:

$1100/220= 5 Contracts x $80 Profit per Contract= $4000 Total Profit

$400/$1100 = 36% Return

Time: Entire trade – half an hour

Worth your time and money? You make the call. The great thing is that earnings season comes 4 times a year. And it always means opportunity. Just rinse and repeat.

If you want to learn more about my earnings option strategy, you’ll want to attend this free one hour webinar where I’ll show you more about this strategy to make money during earnings season. Register by clicking here.

  

Video: How to Profit From An Implied Volatility Spike

In this video training, I’ll step you though my favorite volatility tool, and how you can use it to make money..

Video: How to Profit From An Implied Volatility Spike

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If you like this technique, you’ll want to join me tomorrow night March 17th for a free webinar where I’ll talk more about this perfect tool for today’s markets… and the markets we’re heading into in the near future.  Register by clicking this link:

Free Option Tools You Can Use Tomorrow To Lower Risk While Increasing Returns

To Your Success,

Larry Gaines
CEO and Founder
Power Cycle Trading

Video: How To Choose the Perfect Option Strike

Choosing the right strike price for your trade can be a real booger!  In this video, I’ll give you my favorite tool for making this an easy task.

Video: How To Choose the Perfect Option Strike

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If you want to get in depth information on this topic and other free option tools that give you a huge edge in your trading, then be sure to check out this new course.

Get Option Tools

To Your Success,

Larry Gaines
CEO and Founder
Power Cycle Trading

Video: Are You Using Option Time Value to Your Advantage?

What I’m hearing over and over from you guys is that you want to up level your option trading skills.  This is one thing that I “nerd out” over because I’ve been trading options since the 1980’s.

I actually love the way you can use totally free option data to significantly rig the odds of winning trades in your favor.  You just don’t have this same advantage with stocks!

Yep, I’m talking about the Delta, Theta, Gamma, Std Deviation and all those other nerdy tools that we option traders go nuts about.  But are you really capitalizing on these powerful free tools?

In today’s video, I’ll talk a little about time value.

Video:  Are You Using Option Time Value to Your Advantage?

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If you want to learn way more, click below to find out about a course I’m having NEXT week packed with option trading techniques that give you a huge distinct advantage over that guy on the other side of the trade… you know, the losing side.

Option Tools That Every Trader Must Know

To Your Success,

Larry Gaines
CEO and Founder
Power Cycle Trading