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To no one’s surprise, airlines have been crushed since the start of the pandemic.

Despite vaccines on the way, no one really knows how long the deadly virus will grip the travel industry. 

However, people have started to brave the skies and take flight.

The anticipation of a successful vaccine is raising everyone’s spirits heading into the holiday season

Where there is bad news I’m finding opportunities to trade the markets… After all, you can find a bull market anywhere if you look close enough.

There was some interesting Fractal Energy action in this one airline stock that caught my attention 

And now I’m sitting on a casual 90% gain.*

So I want to show you how I spotted this play, and why it’s important to pay attention to key Fractal Energy levels and price action.

 

This Chart Pattern Alerted Me To This Trade In AAL

 

While many traders look for catalysts like news or earnings to trade a stock

I find that Fractal Energy is a true indicator of what the stock is ‘feeling’.

And it’s this indicator and pattern that let me know that the stock was ready to explode over 30%

I know I repeat myself, but Fractal Energy really is the only gauge for how a stock’s internal energy is acting

When I’m looking for a trade to set up, I need a few things to play out first.

First, the price action must suggest that the current trend is exhausted.  Second, the stock must be trading at key support levels.  Third, Fractal Energy must support the price action and not signal a conflict of direction.

 

Source: Thinkorswim

 

My subscribers know which pattern I find to be reliable, but let me tell you a little about this one.

If you look above, AAL is finding support near its key support level of $8.25 and keeps bouncing off its lower Bollinger Bands consistently 

There is also targets forming overhead at previous pivot levels, giving the stock a natural place to trade to in the future

Now, price action is one thing… but Fractal Energy is what drives every trade I place

And you see, I need to see Fractal Energy either charging up or fully charged in order to want to place a trade.

 

 

And by looking at the weekly chart of AAL, I noticed that the Fractal Energy was starting to finally start charting up heading into September.  

Recently, Fractal Energy is charging as it remains above 50, suggesting that the stock is building energy to have a strong trend in the future.

So that’s why I decided to trade a short put spread knowing that AAL is looking to trade sideways to higher in the future.

Combined with plenty of support below the 52-week low to keep prices from falling down to my breakeven price, this was a no-brainer.

Fast forward to today, and I’m up nearly 90% on this trade and ready to close it out soon for a huge win.

You see, I found this stock in 3 simple steps and it’s a system that’s easy to rinse and repeat… but that’s just my opinion and you should find out for yourself here

And with the way the markets have been acting recently, it’s a relief to get away from the day to day struggle with this back and forth

Fractal Energy has been able to help me identify some “certainty” in this chaos, and has given me a defined edge against the rest of the market.

Want to learn more?

Click here to sign up now

Author: Dave Lukas

Many people start trading options with the idea that going “rags to riches” is only a hop, skip, and a jump away.

Sadly, many just blow out their accounts — never to trade options again.

But it doesn’t have to be this way.

You see, with the right edge, I believe it’s possible to put yourself in a position to generate income with almost every trade.

Of course, trading is difficult and it took me a while to master this strategy for myself.

And once I mastered it,  I’ve gone undefeated since the launch of my service… and in my opinion, I think it can continue into next year

I believe that once you learn this strategy, you will be kicking yourself for wasting time on everything else.

I felt it was like turning the lights on in complete darkness…it all made sense once I started trading credit strategies with the right edge!

Now I wonder what it can do for you…

CREDIT STRATEGY FOR INCOME

Selling put options is a great way to put the power of the casino in your favor.

This means you’ll be selling options to the gamblers, and collecting income as you go.

Pretty sweet, huh?

This strategy checks off a lot of boxes when it comes to ease of use plus the extra income you can generate

And one of my most favorite parts of this strategy is that I am paid upfront for taking this trade.

How does it work?

All options come with two main parts:

  1. A price obligation (the strike price)
  2. A time obligation (the expiration date)

But you see, I don’t start to sell puts on every single stock I find on a watchlist…

I only want to trade this strategy when I have a defined edge!

And I turn to the power of Fractal Energy to determine where to place my trades

Now, let’s take a look at how I generated nearly 100% returns on my MGY trade

Once I saw this chart, I knew it was money…

Source: Thinkorswim

The trade that I sent out to my trading community 

ALERT:  I sold the MGY Mar ’21 $5 put for $.85.

Source: Thinkorswim

You see, I just need the stock to stay above $4.15 and I’ll generate income!

Then shortly after I placed my trade, MGY turned around and started heading higher.

Now it’s time to ring the register!

But first, why did I decide to sell these puts?

Well, for two reasons:

  1. MGY was trading near two forms of support, the 52-week low, and lower Bollinger Bands
  2. Fractal Energy was telling me there was a strong move coming soon

You see, just because I know there is a strong move coming soon, I don’t know which direction!

And that’s where technical analysis comes into play

By using technical patterns and indicators, I found key levels of support or resistance on MGY

Then I came up with a plan of attack for the credit strategy.

So, after reviewing the material in front of me, I decided a short put was the way to trade this stock.  

What does this mean for you?

In my opinion, you need to stop gambling and start focusing on ways to generate income.

I need to feed my family, so this means weekly, monthly, and yearly income is required to live on.

And even though there are traders who can gamble on options and land huge profits, there are many many more losers out there.

So why chase a strategy with such a high LOSING rate? 

Instead, you should learn a strategy that has a high WINNING rate!

That’s what selling credit puts and credit put spreads are best known for!

These strategies are like being the house with the odds in your favor.

You win more than you can lose, and combine this with the correct risk management strategy, you can create a steady income stream like I’ve done for myself.

And I’ve mastered and I’m ready to show you how it’s done and  how you can trade these income strategies every week !

So, if you’re reading this email, chances are you are missing out on the next winning trade just like this one.

Don’t miss out on my next income-generating trade and start getting alerts for my trades that I’ll be placing going into the holiday this week.

Click here to sign up now!

Author: Dave Lukas

One thing that excites me the most about selling options is being able to generate income on demand

Yes trader, you heard me right.

On. Demand. Paid upfront!

This means… If I want to make money, I simply need to execute another credit spread.

Now, I don’t want to blindly sell every stock I see of a watchlist – that’s just nuts!

But I do want to sell as many of my A+ setups as possible

You see, unlike spending money on options, credit spreads allow me to generate income by taking advantage of two options pricing calculation

Theta and Vega, or the time decay of an option and volatility of a stock

And the juicer the options, the more money I can make in the same amount of timeSo, this week, I’m on the hunt to find some of my favorite setups in hopes to take advantage of a shorter trading week and land me some faster paydays.

Energy Trader – Watchlist

Traders, when it comes to finding stocks… you just need to stop looking at the same 5 stocks on repeat.

Sure, there’s a slight advantage to knowing the stocks that you love to trade… 

But more often than not you are actually doing yourself a disservice by holding out on what the rest of the market can offer

And one way that I find stocks to trade outside of my usual grab bag assortment, is my utilizing my Fractal Energy Scanner to help me narrow down my ideas.

And two scanners I typically use are geared towards finding exactly what I want to see

I scan and search for 

  • The perfect fractal energy setup (Thinkorswim)
  • Stocks that are of high value for a long-term investment (Finviz)

You see, I don’t necessarily use each scanner for every trade, but these tools help to give me confidence in my decision and why I chose a stock to trade.

Check this out… by using a scanner, instead of scanning almost 30K …. Or THIRTY THOUSAND stocks…

A scanner gives me the ability to only focus on only the “best of the best” and look at a stock universe of no more than 100 names on average.

In this case, I am only looking at 76 names that are setting up for my A+ setup next week

Now I don’t want to take every one of them, but instead get together a list of the “best of the best” to trade on

Here’s what I found for the week ahead…

DUKE ENERGY (NYSE: DUK)

Fundamental review:

Technical review:

  • Recently had earnings on 11/5, which appear to have somewhat mixed impact on the stock.  DUK missed earnings, but it appears the stock has traded sideways from this announcement.
  • Technically, DUK is sitting on a strong level of support that stretches as far back as Feb 2020
  • I am looking an old traders saying, Past resistance = future support to hold true
  • DUK is currently holding its technical level from the Bollinger Bands, acting as support since Nov 2
  • Fractal Energy is holding steady at 52.74
  • FE supports there is a lot of energy building in DUK, and a breakout in either direction could come as soon as this week

Source:Thinkorswim

HOME DEPOT (NYSE: HD)

Fundamental review:

  • Consumers’ appetite for home improvement continued in the third quarter, as they spent money on an aspect of life that’s brought comfort during the pandemic: their homes.
  • Home Depot and Lowe’s customers have taken on DIY projects and paid for home renovations, such as converting garages into home offices and gyms and sprucing up the yard to make it a relaxing escape during a challenging year.
  • Both retailers saw a noticeable bump in sales and a shift online in the third quarter.

Technical review:

  • Home Depot is in a strong uptrend, since the stimulus package was announced in March 2020
  • Currently, HD is sitting on multi-month support
  • Past resistance = future support is holding true, as HD has been holding onto the $260 / share level since August 2020
  • HD has held its technical support level, the lower Bollinger Band, the prior 3 times it traded at it
  • Fractals are screaming higher, with a value of 62.12 reported, the second strongest all year, with the highest value recorded at 64.12 on 7/6, where the stock ran nearly 20% higher afterwards

Source: Thinkorswim

STITCH FIX (NASDAQ: SFIX)

Fundamental review:

  • Stitch Fix is an online apparel company
  • It uses recommendation algorithms and data science to personalize clothing items based on size, budget and style.
  • Stitch Fix generated more than $1 billion in sales during 2018 and reported 3.4 million customers in June 2020.
  • As the pandemic continues, customers are still setting sales records for online purchases, even though malls and stores are starting to re-open

Technical review:

  • SFIX is forming a Bullish Pennant near all-time highs
  • Stitch Fix is trading into the lower Bollinger Band, which can act as a technical level of support for a stock
  • Fractal Energy is charged near all time highs.
  • Previous four largest FE charges resulted in a 50%, 30%, 35%, and 50% respectively

Source: Thinkorswim

Wrapping Up

There are plenty of Fractal Energy Trades out there, and I want to teach you how to find them.

That’s why I created Energy Trader, so you can learn how I identify my scalable and reliable pattern to attack the market.

Now, this is just my watchlist for the week ahead

And if my pattern sets up perfectly, I will be taking these trades.

But only my subscribers will receive exclusive access to this information.

To stay up to date with my weekly research and receive actionable trade alerts when I place my trades, sign up to my Energy Trader subscription today.

Remember, once I decide to trade these stocks I will not be sending this information out to anyone other than the subscribers of Energy Trader

So before missing your chance at learning how to trade one of these stocks utilizing my special indicators – sign up here before it’s too late.

Join me here!

Author: Dave Lukas