Last week we used two of the simplest, most basic indicators and spotted a move that has nearly doubled (and probably will move up more).
Here is a link to what we saw last week.
It is a strategy that we have used many times in the past. Start with what you know is absolute in the market. Currently, interest rates are going up and we have been in a wild bear market since the beginning of the year. As people watch there 401ks and other investment tank, they are looking for a safe place to turn. That led us to take a look an ETF that tracks gold. Look at what it has done since last week:
The green line is where we started watching GLD. But the real secret sauce was the approach we considered when we look at possible trades. This market is very wild so we wanted a strategy that would lock in our risk where we felt comfortable. We also wanted to grab as much upside leverage as we could find. Using options allows you to do both when placing a trade.
We looked a call options and noticed the Nov 18 165 calls were trading at just over $1. In looking at what we are willing to risk, that fell into our acceptable profile. In just a week, those call options are up to $1.92 an rising.
If you want to learn how to find great option trades like this, check out Wendy Kirkland’s Golden Paycheck program. It teaches you how the set ups work and sends you alerts when they are forming.
Keep learning and trade wisely,
John Boyer
Editor
Market Wealth Daily
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