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Trading options is more than a black and white strategy… and they can be as easy or complex as you make them out to be.

Now I am sure you are thinking… “buying a put or calls are ‘easy’, I do it all the time…”

And you’re right.

But did you know that it’s possible to have better odds of winning than just going to the casino?

And typically, when you buy options, a lot of traders believe there’s only a 33% chance of winning.

Yuck… That is a strategy I don’t want to trade. I want a strategy where I have the 66% chance of winning as the house does.

Which is why I love trading credit strategies over buying options.

This is a strategy that I’ve been trading for a long time, and in my opinion, it’s one of the few strategies that are reliable, scalable, and simply profitable.

And it puts the house odds in my favor with a 2 out of 3 chance to land profits.

For me, I’m using Fractal Energy patterns and credit spreads every day to profit off the markets, and I want to teach you how you can do this for yourself.

Ready to learn more about how to generate income instead of gambling your money away every day?

How I Traded ET For Huge Profits

You see, I don’t like to gamble and spend money on a trade that I could win big on…

Why?

As a gambler, these companies don’t want to make you rich… instead, they are in the business of taking your money

And they don’t care… they are not your friend and they aren’t there to help you

This is a cut-throat industry, and only the strong traders will survive.

But luckily I have a strategy that puts the odds of the casino to work for me and the odds of winning in my favor.

You see, instead of only winning 33% of the time as a buyer of a stock or options, I have a 66% chance of winning by selling options.

And compared to those other debit strategies, a credit strategy lets you profit if the market goes up, down, or sideways.

Which is exactly why I find this strategy to be so appealing to me.

Now, I recently closed out this trade for monster gains… and I want to show you how I did it

Now, there are two things that I target in this trade… the Fractals and technical indicators for support and resistance.

This allows me to identify the support and resistance levels of the stock to make a determination about how a charged fractal energy will impact the stocks new trend.

In this situation, it’s all about the 52-week low and the Fractal Energy.

Why?

Because the 52-week low is a major physiological trading level for every investor and trader. And there are a lot of buyers at these levels, which can cause a stock to reverse direction with a lot of momentum.

And the Fractal Energy is telling me that buyers are piling into the stock as the values climb above 60.

Once I saw this I knew I had to get into the trade.

So I placed this trade on ET and my subscribers were the only ones to find out about this trade

The Trade:

ET – I sold the Jan ’21 $5 put for $.50

So I decided that I was going to sell the puts for $50 per contract and alerted my members.

And then I added a spread trade to this as well in order to double up the returns of the stock without taking massive downside risk.

The Trade:

ET: I sold the Jan ’21 $5/3 put spread for $.40

Recently I closed both of these trades out for nearly 100% profits each.*

You seem, by trading options, even if the stock went up, down, or sideways – I could make money on this trade with almost anything that the market threw at it.

Recently, I’ve locked in gains on those two trades.

And if you were to buy the options or the stock, you would have possibly been stopped out by the choppy nature of the markets.

Now if you sold the spreads, you would have made up to 100% returns on your trades no matter what direction the stock went in.

And when the Fractal Energy got to the elevated levels, I strongly suspected that the stock was about to take a leg higher.

Which it did!

But you see, I don’t always know the direction the trend is going to head in… which is why I turn to technical indicators to give me that heads up

The Bollinger Bands are a frequently used technical indicator that gives me an idea of where the stock wants to head in.

Now the Bollinger Bands act as the ropes in the boxing arena, where they push the stock back into its center.

And when you combine credit spreads with the power of fractal energy and technical analysis, you can get the trifecta – winning combination on your hands, in my opinion… if you know how to use it to your advantage.

 

Author:Dave Lukas

 

Have you been watching EV stocks explode higher these last few months?

I know I have been. And for many traders, they have been stuck on the sidelines not sure where to even enter the trade.

Or, if you were suffering from FOMO, maybe you just slammed into a position… only to watch it reverse against you.

If this sounds like a familiar story, I think I’ve got the solution for you… Fractal Energy.

Fractal Energy happens to be one of my favorite chart patterns to leverage the greed of buyers and sellers, and it puts the odds of the casinos in your favor by using Credit Spreads.

This pattern has been landing me win after win, and so far I’ve gone undefeated since launching this service.*

And now, I want to teach you this pattern, not because I think it’s great, but because I use it every day when I trade.

It’s a strategy you don’t want to miss out on learning.

And, it has recently targeted three electric vehicle stocks that momentum traders have been chasing for months…

Three EV Stock You Can’t Miss That Are On My Radar

If you haven’t heard the news yet… EV stocks are the craze.

And traders and investors can’t get enough of these stocks if green energy is going to be the focus of the next four years.

Now, I don’t want to just trade stocks or buy options… that’s almost a guaranteed way to lose money.

It’s just too risky for me to do that.

What I think I’ll do is stay patient and wait for the stocks to come to me.

And that’s what happened over the last few weeks.

I’ve had these three names on my radar for some time, and now I think they are finally starting to come closer to being traded.

Of course, I don’t plan on trading these stocks right now… but they are on my watchlist and I think they deserve to be on yours too.

Let’s take a look at the price action and see why I think these stocks are ready to pop soon.

NIO INC ADR (NIO)

Let’s start off with NIO and see what the price action is telling me about this EV stock.

Honestly, I never got into this crazy in the beginning.

But now with all of the traders speculating on which direction NIO will be heading lately, I think I might want to dip my toe into the water a little bit.

So, what I see happening here is starting to catch my attention.

NIO has not fallen to a level of support since September, when it had fully charged Fractal Energy, managed to run 225% higher!

Now, I don’t have any magic 8-ball and I can’t predict the market… But I do like to take a good trade when I know the Fractal Energy and Bollinger Bands are showing me something worth taking.

And that’s exactly what is happening in NIO right now… But it’s not quite down to the lower Bollinger Bands just yet, so I will be keeping this on my radar for now.

Then once I see the perfect setup, I’ll be trading one of my favorite strategies – a credit spread in order to take advantage of the suckers who are buying expensive options or stock.

LI AUTO INC ADR (LI)

In this same sector, LI is a stock that recently IPO’d, and is back on my radar after it’s run higher in October.

Take a look at the highlighted areas of the chart.

LI was getting ready to break above prior highs as it was trading against the center momentum moving average of the Bollinger Bands…

And the Fractal Energy was fully charged for the first time in the stock’s trading history.

Unfortunately, hindsight is 20/20 and now it looks like a trade I should have been involved in but I never took the trade.

But that’s ok!

Just because I missed it one time, doesn’t mean I’ll miss it next time.

So instead of chasing the stock higher now, I will just wait for my next opportunity to attack and trade it higher in the next leg.

WORKHORSE GROUP INC COM (WKHS)

Another stock that is in the same sector as the other two which got a lot of attention lately is Workhorse, WKHS.

And for good reason.

WKHS is another stock that joined the 1500% gains club this year.

But, with a stock moving like that, I definitely think it’s best to trade options instead of the stock itself.

And I’m looking for a specific pattern that I can take advantage of.

This pattern is a support or momentum pattern combined with a fully charged Fractal Energy (FE)

Just take a look at how WKHS reacted at 3 of the most recent fully charged Fractal Energy

Now, right now the stock doesn’t seem to be at either a major support level or setting up a momentum trade.

But what caught my attention was the build up of the Fractal Energy over the last few weeks.

And it’s not fully charged just yet, but what I would like to see is WKHS start to trade down to its lower Bollinger Bands while the Fractal Energy sustains a fully charged ( value > 60 ) reading during that time.

Then once that occurs, I’ll be watching the price action to decide if I want to trade credit spreads on this stock.

You see, right now I don’t plan on taking any of these 3 trades at the moment… but this could change

But, for now, I’ll sit and wait as I stalk these stocks for a trade.

And my Energy Trader subscribers will have exclusive access to when I plan on entering these trades.

Now, this is just one pattern for finding trades that I have in my trading arsenal.

Plus, once I find my trade, there are many different credit strategies that I have in my toolbox to choose from as well.

And in my opinion, credit strategies are a great way to put the odds of winning in your favor and boost your returns over simply buying stocks.

So with that said, right now, price action is what’s working.

And if you can identify them, I believe it’s possible to land more consistent returns

Plus, price action can help you plan your trades and get your thumb on the pulse of a stock before putting your capital to risk.

Now… make sure you sign up for Energy Trader here and let me show you how you can use Fractal Energy combined with Credit Spreads to put the odds of winning in your favor, and why it can help you become a better trader.

Click here to sign up for Energy Trader now

 

*Results presented are not typical and may vary from person to person. Please see our full disclaimer here: ragingbull.com/disclaimer

 

Author:Dave Lukas

In this market environment, good stocks are pulling back and junk stocks are popping…

But, this week seems to be different, with all three indexes closing at all time highs.

Now, even though it might feel like stocks are going straight up, I am finding that they are actually trading in very predictable patterns, in my opinion.

One way to uncover these plays is to identify where the momentum will hit, and execute the trade, and wait for the fireworks to go off.

Of course, with Janet Yellen potentially leading the Fed again, there will be momentum opportunities popping up everywhere.

You see, with so many stocks to trade, you need to have a way to filter out what you want to trade and where you have an edge – and buying stocks randomly is not a strategy you want to even think about…

Instead, I want to show you how you can identify these plays using these two indicators.

 

Why This Momentum Could Signal Huge Gains For 2021

 

There are many catalysts coming up in 2021, but the presidential election and change of power is in the spotlight. You see, a lot of traders are eyeing more stimulus to boost the economy.

And now that Jannet Yellen is joining in on the fun, I think we are going to see a record-setting year.

But what does this mean for stocks.

With this type of cash being thrown into the markets, it means they are going to the sky. And some of the best opportunities are going to be found in stocks you would least suspect.

Of course, you’re probably thinking, “Dave… how do you actually uncover these trading opportunities?”

I think it’s actually pretty simple.. Let me explain

Every day, I use a screener and filter for stocks to potentially trade. For the most part, I am looking for stocks that match my favorite Fractal Energy and Bollinger Band setup.

 

 

If you look above, it’s not a lot of names.

You see, there are only 100 names for me to look at on here instead of trying to go through over 25,000 stocks that trade in the US Equity markets.

But sometimes the best opportunities pop up from trades that are not even on a single stock, but instead the market index.

And what I spotted looks to be a once per year opportunity.

 

SPX – WHY I TRADED THE MARKET INDEX

 

Now, I am sure you’re a bit crossed at this point, thinking…”why are you even trading a market index instead of a stock?”

You see, the market is sometimes a better signal of what’s going on compared to a single stock.

Many times a single stock has too much “noise” or what’s known as, “single stock exposure” to make it worth trading.

But when you trade a market index, you cut through all of that BS and only focus on true technical patterns without any of the single stock risk factors.

Just check this out.

 

 

You see, the stock market has been trending higher after the market collapse from COVID earlier in the year.

And it finally got back to market high from almost 1 year ago !

But what really caught my attention was the Fractal Energy reading… where it was charged and ready to start the stock trending.

Now, I don’t know what direction the market is going to head, but what I do know is that the internal energy of the markets is very night right now, and this pattern that is setting up has the smell of a breakout written all over it.

Which is exactly what I was looking for in my recent SPX trade that I took this week.

 

 

In this chart, you can see a similar pattern.

Once the Fractals get charged, the stock starts to trend higher after the energy is released.

And this is the action that I anticipated in the markets and led me to set up my SPX credit put spread

Now, in this rare circumstance, all three markets are showing a similar pattern.

 

 

Coincidence that it’s aligning with the change of power and the QE and COVID relief funds that are coming up next year?

Hardly…

You see, the markets are smart, and this is setting up to be one of the most explosive years in the record books.

Now time will tell, and I’m just speculating that the Fractal Energy is going to release higher… but I like my odds with how this is going to play out.

So if and when I decide to trade any of the markets again based on Fractal Energy, I’ll be sure to send out an alert to my Fractal Energy subscribers.

They will receive instant alerts for when I enter a trade and exactly how I’ll be structuring my spread.

Don’t miss out on my next options trade that I am setting up this weekend to generate more income

And if you hurry and sign up now, members will be receiving a detailed guide for selling options next week, sent to you on Sunday evening.

So what are you waiting for, sign up here to see my next trade

Don’t miss your chance to generate additional income week-over-week and month-over-month by using credit spreads

Click here to sign up now and join my team in Energy Trader

Author:Dave Lukas