Options Trading DIA | Naked Puts Paying Off Huge

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It is my hope you have been options trading DIA power shares which we alluded to in a trade originally seen over at Phil’s Stock World. Following the bot trading patterns of the machines working the DIA power-shares has proven quite lucrative, even if the trading pattern is not quite as Phil described it on any given day. The point is there is definitely pattern trading going on with those shares and if you have the ability to buy and sell in or near the money options on those shares on upswings and downswings then you should have done very well in the last week.

There is no guarantee when it comes to market timing, but the volatility has been so wild in the last two weeks between the Goldman Sach’s fiasco, Greece and the Euro-debt, Iceland’s volcanos that the trading was like New England weather: What? didn’t get what you wanted? Wait 5 minutes, someone will hand it to you gladly. Then, just when you think everything is hunky-dory, the dornobs at British Petroleum make a mess so big that it lets the Exxon Valdez fools off the hook for the title of “Biggest Blockheads of All-Time.”

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In the end there wasn’t any way to be certain you were topping or bottoming but if you bought naked puts after a gap up and waited long enough, the market inevitably gave you your limit price later on – if not the same day then early the next day. Likewise naked calls after a gap down. Yesterday’s market movement was an extraordinary downward spike as money FLEW off the table on pent up volume (holidays/short trading days overseas slowed volume Monday).

I can’t recall a time where I have had so many trades pay off so quickly in so short a time – binary options notwithstanding of course. I hope you cashed in a few of the layups last week. As I said, I can’t recall a time in my long trading life (20+ years) where I made so many flips in so short a period – every single one of them in the money – and big. Maybe I should buy a Powerball while my fortune is this good. I hope your trading is going equally well. As always if you don’t have the capital for regular options trading you can still participate in the market on the DIA or other similarly traded power shares via AnyOption or another binary options trading platform (only need USD $100 capital to start).

Happy trading!

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One Response to Options Trading DIA | Naked Puts Paying Off Huge

  1. Options Trading on May 14, 2010 at 1:23 am

    Another day, another successful options trade. I did have to be patient but after a 4 trading day holding period the net gain? 100% – man what a run. When the market goes crazy (as it did last Thursday) opportunity STILL knocks even days after. You don’t have to necessarily hit the bottom to get a payoff from a huge plunge like last Thursday. I went long on a favorite lesser known option contract with a great deal of comfort and was rewarded yesterday – 100% return for a one week (held over the weekend) duration investment.

    Happens every day somewhere people!

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