Always Leave Some Money on the Table

We experimented with our OEX subscribers last week by providing two signals, a put and call, on Monday, and gave instructions on how to play both signals through the week, with no other new signals given.

We did this for three reasons:

1. We teach that the actual option that is chosen for index trading is secondary to how to buy , sell, and “learn” the option. This is called “falling in love with an option”, truly knowing its movement so well that you can anticipate the bid/ask and what the traders will trade as they try to profit from one another.

2. Our basic set of instructions for the week was set to teach the trader how to follow specific directions, or not to trade.

3. To teach our use of the “count” or bell curve around the Dow Projections and support and resistance lines to take tight profits even in a range bound market.

During the week Floyd received testimonials and updates from Level 2, Level 3 and Advanced Mentoring clients. The results should be of interest to you.

Using 73 email inquiries, averaged:

-No losses

-An average of 9 gains on the call of .50 to .80 per contract.

-An average of 5 gains on the put of .60 per contract.

This was “tight” trade range trading in a market almost unable to trade with the tight range the market was in.

We will be repeating this approach this week for index option traders, and as you receive your separate alert make note our goal is to “trade the edges” and if the market does trade range, how to have buys and sells always in, and work for tight profits.

The commentary to OEX traders above teaches our Blue Chip Option subscribers our approach to focusing in on “the few, not the many”.

Options and new stock trades that hit the money for us this past week:

RIMM Call- up to 46% profits, SOLD

CAT Call, up to 50% profits, SOLD

SHZ-new stock, up 50% in one week. Not sold, or if done so sold by 1/3’s

We remain deep in the mud on our REE January call but are not pulling the plug.

Our friend , Alan Austin, who recommended several of our positions, is studying the rare earth sector well and finds new break out stocks or options often.

We added to our WMT LEAP call on dips, and will continue to. We also continue to add to our PG LEAP call on any dips, and will continue to buy this position.

We believe both Gold and Silver are soon hitting short term tops, and recommend to all “traders” of Gold, Silver, etc. to take profits. For those traders holding inventory for the long term Glitter, or GLTZ, remains a balanced hedge of the 4 top precious metals.

Gold will still hit $2000 and up by the end of 2011, and Silver even higher ratios, or our recommendations to sell some of our positions is to always use our maxim

ALWAYS LEAVE SOME MONEY ON THE TABLE