Written by A.J. Brown

Lucky Sevens: Perfect Time for Trading Stock Options

Many traders saw stars on Monday, September 29. As the market plummeted, they took huge losses.

And it’s no wonder. The DOW dropped 777 points in a single day — the largest single point drop in history.

If I were a traditional “buy and hold” investor, I would be absolutely terrified to look at my retirement account right now.

Fortunately, I’m not a traditional investor; I’m an option trader. So while the market was reeling, I was seeing “lucky sevens.” So were many other Trading Trainer members…

What exactly are we doing?

Lately, we’ve been using channel breakout strategies combined with tight trailing stop-loss orders. By following our rules, we’ve been able to make money in spite of the big market swings. And when I say “we,” that includes Trading Trainer members.

While everyone cries the blues, we’re laughing all the way to the bank. Here are two REAL trades our members have made in the last two weeks.

Example #1: September 19, 2008

Hi AJ,

I just want to let you know last 2 days I made a profit of $3,700.00 by trading 2 contracts of GS. Enough to pay for the 2008 Appentice Program. Thank You. Smile

S.L.

Example #2: September 29, 2008

I am in short on POT and X as of last Friday thanks to a channel breakout “hedging strategy”.  Am very happy today with the massive drop in both of these underlying stocks. Have a tight 8% trailing stop on the option. Excited for tomorrow either way the market goes.

M.D.

As the saying goes, one man’s trash is another man’s treasure.

Or, in the case of recent market volatility, one man’s reason for panic is another man’s reason for celebration.

Won’t you come celebrate with us?

Best regards always,

A.J. Brown

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