Option traders can't be value investors, or any kind of investor for that matter. Outside of the next month, maybe two, we don't care at all what happens to a stock. However, the greatest value investor of all time, Warren Buffet, summed it up best when he said “be fearful when others are greedy and greedy when others are fearful”! This is the “rock” upon which I've built my system.
When a market or stock has been stretched too far to the downside (fear) we buy calls which increase in value when the market rebounds. When it has been stretched too far to the upside (greed) we buy puts and hit the mother-load when the market catches a dose of reality and begins to fall.
What's crazy, when you know what to look for, these opportunities are endless. Every single day there are stocks ready to move 10% to 30% that could result in a 100% to 500% gain trading options. Where else can you find that kind of opportunity?
In just a moment I'll share with you the very method I use to identify extremes of greed and fear with dumb-founding accuracy - making option trading very simple, profitable, and something that anyone can do.
When a market or stock has been stretched too far to the downside (fear) we buy calls which increase in value when the market rebounds. When it has been stretched too far to the upside (greed) we buy puts and hit the mother-load when the market catches a dose of reality and begins to fall.
What's crazy, when you know what to look for, these opportunities are endless. Every single day there are stocks ready to move 10% to 30% that could result in a 100% to 500% gain trading options. Where else can you find that kind of opportunity?
In just a moment I'll share with you the very method I use to identify extremes of greed and fear with dumb-founding accuracy - making option trading very simple, profitable, and something that anyone can do.
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