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Whether you've been trading for days or years, your first move should be to spend a little time reviewing the recent updates so you are up to speed on where I see the market going. Don't jump in and buy old recommendations -- wait for me to issue a new buy alert before you put any money to work.
I know you want to get started, but part of what I can do for you is get you into the trade at the right time. And don't worry -- you won't have to wait long! Every night I run a technical alert scan, so there's always a new pick waiting in the wings.
You can start your Parabolic Options trading journey with as little as $2,000. We will have about a half-dozen, short-term trades on the table at any given time, so you'll definitely want to keep some powder dry for when new trading opportunities arise.
One of the benefits of options trading is that it requires far less capital than stock trading. What's more, I choose single-option trades (puts or calls) that are relatively low-priced. While I don't adhere to any strict limits (especially if the technical signals are shouting at me), most of our past trades have been in the $3 to $5 range per share.
Remember that when you buy options, however, the per-share price is multiplied by 100 to reflect the full contract. So, if I recommend an option with a Buy Under price of $2.50, then you would pay up to $250 per contract to control 100 shares of the underlying instrument.
Only you know how much risk you want to take on. When buying options, the most you can lose is the most you spend to enter the trade. You can purchase as few or as many contracts as you desire, depending on how much money you want to allocate to a particular trade and how much of the underlying security that you feel comfortable controlling.
Profit opportunities can arise any time during the trading day, which means I'll send trading alerts whenever it's time for us to take action. Additionally, I may send market updates during pre-market or after-market hours so you'll know exactly what I anticipate will happen.
Though I will give you as much heads-up as possible, to get the best profits from this service, it's best if you can check your e-mail at least once a day, but preferably several times each day.
However, we understand that you may be in the boardroom, operating room or family room when alerts and issues arrive in your inbox. For your convenience, we offer you the option to add a secondary e-mail address to your account so that, whether you're at home, on the road or at the office, you receive your trades in a timely manner.
All you have to do is contact our customer service team at Service@ParabolicOptions.com or 800.861.5976, and they'll get you set up!
Point-blank, I don't care whether the market is bullish or bearish -- I only care about making money. We make money on both the long and short sides.
That's right, when stocks or entire sectors are in a downtrend, you can still make money -- instead of just wringing your hands like most investors. Our options plays let us do that by using calls to capture upside profits and puts to capture downside profits.
To find those opportunities, I employ a host of sophisticated trading tools that focus on technical analysis. I spend countless hours tracking all of the stock market sectors and sub-sectors -- more than 16,000 different investment vehicles -- to provide traders with the best information available on underlying stocks and the overall market to find corresponding options plays.
But if all traders needed was raw data, there'd be a lot more millionaires out there!
Because of my years of experience, I'm able to interpret the technical signals for you, find option trades that will benefit and then tell you exactly when to get in and when to get out by using our profit targets.
First, make sure that your broker can trade options, or that your online trading platform has given you authorization to both buy (i.e., "buy to open") and sell (i.e., write, or "sell to open") options if you're executing your own trades. In most cases, there is a very simple application process that takes just a few days, at most.
Once you are cleared for options trading, the rest is easy.
In this service, you will "buy to open" a position to initiate it, and to close it you will "sell to close." This is my favorite strategy to play stocks that are about to make a parabolic move, either upward or downward. These directives will match up with the choices your brokerage gives you, so just choose the corresponding order for each action.
Before we go any further, let's clarify what "long" and "short" mean.
When you are "long" on a trade, you are bullish about it, meaning you expect the security's value to increase. You can be long by either buying a stock directly or by purchasing call options for it. You can also establish a long position by selling puts for an underlying stock.
When you are "short" something, you are bearish about, meaning you expect the security's value to decline. You can be short by either selling a stock you don't own (which I don't and won't recommend) or by buying put options. You can also establish a short position by selling calls or puts for an underlying stock.
For each option trade, I will tell you exactly what the underlying stock is, the expiration month for the option, the strike price, the option's ticker symbol and any price limits for establishing or closing a position.
Through your brokerage, you will be given a choice to establish a "market order" or a "limit order." For this service, I will ask you to use a limit order the majority of the time. This is for your own protection to ensure that you don't overpay or shortchange yourself out of any profit.
A market order means you are allowing your broker or brokerage to try and get the best price available, which sounds like a good deal. But remember that they're not necessarily getting the best available price for you, since many brokerages work with multiple traders.
Almost always, a better strategy is to use a limit order, which limits the price at which you buy or sell. Limit orders ensure that you won't pay more than you want for a position or that you never close out for less than you want.
However, patience is key when it comes to using limit orders. Your order may not get filled immediately (or at all, so you need to double-check to make sure you got into the trade, and may have to revise your limit to do so), but exercising patience can save you a lot of money -- especially if you have multiple contracts. I will always tell you any price limits so you'll know exactly where to set your limit orders.
I am constantly monitoring the portfolio and will issue an alert to sell a half-position or a full position as conditions warrant. If you receive an alert to close 50% of your position, that's exactly what it means -- if you bought 10 contracts, you cash out of five of them (which serves to protect your original investment capital), and the five remaining contracts that are still "in play" are a way of using what might be pure profits to generate even more profits.
And just as I tell you exactly what price to pay issue Buy Under prices, we also provide a recommended price where you should sell. But when the markets are incredibly volatile and fast-moving, a sell alert telling you to "Close the XYZ Puts for $2 or better" may seem easy enough when you receive the alert. But if you put in a limit order to sell at $2 but the price never exceeds $1.95, you may have a decision to make as to whether to put in another limit order or to take the $1.95.
Again, we are monitoring the trading activity and know whether our subscribers were able to get the recommended prices. If we recommend $2 as a closing price and we see a ton of trades go off at that price, that's the one we will use in our model portfolio to calculate our track record. But we've heard from many subscribers that they were able to get $2.10, $2.15 and even $2.20 -- far and above our closing price! (That's where that "or better" comes into play.)
And sometimes, yes, we may have to give up a nickel or dime to get out of a trade (i.e., $1.95 or $1.90). But it's better than overstaying our welcome and cutting into our profits even more.
Speaking of closing positions, in general my expectation is that when an option trade doubles in value, we'll take 50% of our capital off the table. That is, if you've bought 10 contracts of an option, you'll take five off the table. This move serves to preserve your original investment capital so that you're playing the rest of the trade with pure profits.
In both our Weekly Trading Landscapes and in Alerts, we will address positions that need further clarification. We seek to provide you with the information you need, which could be to keep the faith with your limit orders, to seek a different price, or to simply let the trade go and wait for the next one. Because, trust us, there will always be a next one!
For any information you don't see here, we welcome you to contact us via e-mail at service@parabolicoptions.com call us at 800.861.5976.
Our customer service team can also assist you with account-related questions such as password changes, updating your billing information and, as we mentioned above, adding a secondary e-mail address to your account.
Although we regret that we cannot provide individual investment advice, we look forward to assisting you with inquiries about current open positions, our trading strategies and other questions related to the service. We recognize that many of you are trading options for the first time, and we look forward to helping you to become successful along the journey!
I often talk about the importance of using solid money-management strategies in your active trading portfolio to get and increase your profits. In this service, that means buying your options contracts over time, building the position on dips and closing out those "extra" or "second-string" positions on rips.
For stock investors, it's a similar idea to having a "core" position of shares, as well as your "trading" shares that you buy and sell when it's most advantageous.
This is not a "buy-and-hold" service, meaning that I don't want you to simply open a position and forget about it for months. I recommend that you scale into your positions and scale out as the profits present themselves; build and decrease positions a little at a time so your capital moves more fluidly.
For example, I may recommend that you buy the XYZ option at up to $3. On day one, you might buy 10 contracts for $3. Then, on day two, you might be able to pick up another 10 contracts for $2.50 and perhaps later that day, you might purchase an additional 10 contracts at $2.25.
While you should always spread out your buying over the course of a few hours (if an option is moving quickly) or a few days, I will let you know when I see a particularly attractive buying opportunity. I will tell you exactly when to pick up those "second-string" positions by reiterating our trades in special alerts -- that is, when the price pulls back, I will recommend that you add to your "core" position.
When you get in cheaper, it only makes sense to close out your position on a nice pop in the options.
Typically, I will recommend that you cash out of your "second-string" contracts while keeping the original (core) positions open for the bigger moves that are yet to come.
Let's face it, no one ever went broke taking a profit, and in a fast-moving market like this, we can make HUGE profits in a short amount of time … even (and especially) when it's going down! And by keeping our "core" positions in place, we won't miss out on the bigger moves that we're expecting.
And as much as I stress managing entries (like scaling into an option), we want to scale out the same way. My goal is that, by the time the option hits the target, we are left with only a small number of contracts because we've been selling all the way up.
So, if you simply follow my instructions in a timely manner, you'll be able to build your positions at the best price and close them for the best price, and all of that means more profit in your pocket!
Psychological resistance is a person's refusal to change their behavior directly or indirectly to a certain set of events triggered by a past circumstance in the market place that they refuse to discuss, remember, deal with or even think about....
