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No doubt about it, there are a lot of amateur traders in the market at these levels.

Now, it’s not a knock on these new traders. In fact, I welcome it.

You see, this new money is just catching wind of the options market. What they don’t realize is they’re competing against traders who have it already figured out.

The way I see it, these traders are just looking for cheap options to get more bang for their buck.

However, when they just try to find cheap options, they don’t know they’re actually gambling.

No joke.

I mean I noticed traders were jumping into Amazon (AMZN) puts BEFORE earnings, and betting against the tech giant.

 

 

I don’t know about you, but that was a long-shot bet, and the options premium got sucked out.

Those puts they bought were going for $0.01 bid X $0.03 ask at 1:40 PM ET.

To me, that was a “sucker’s bet” and there are ways to take advantage of these low-odd bets, and leave these players stuck with the bag.

How?

 

Were These Traders Destined To Lose In AMZN?

 

Betting against AMZN seems like a lose-lose situation at these levels, especially if traders are just shorting shares outright or buying deep out of the money puts.

I mean take a look at this options trade in AMZN.

 

 

They purchased $2,700 puts expiring in just one day, when AMZN was trading at $3,018.50.

In other words, they were looking for AMZN to miss big for its earnings announcement.

Sure, AMZN could’ve dropped after the announcement…

But there was just a small chance those options would become in the money.

How low were the odds?

Less than 6%.

In other words, whoever sold those options had more than a 94% chance of winning.

Of course, selling options outright can be dangerous, and there was a safer way to take advantage of this sucker bet.

I don’t try to trade earnings announcements, but if one was bullish on AMZN, they could look to sell the $2700 puts and buy the $2600 puts.

By setting up that strategy, a trader would’ve stood to profit in three different scenarios:

  • If the stock trades sideways
  • If the stock falls a little
  • If the stock runs higher

They would’ve also benefitted from the drop in implied volatility (since the news was out already) as well as time decay.

Now, if this sounds confusing to you at first, don’t worry.

I break down this risk-defined strategy to take advantage of the “suckers” in the market in my complimentary eBook Wall Street Bookie.

Claim your copy here, and learn how to utilize the strategy that helps me stack the odds to my favor.

Author: Jason Bond

Jason taught himself to trade while working as a full-time gym teacher; his trading profits grew eventually allowed him to free himself of over $250,000 in student loans!

Now a multimillionaire and a highly skilled trader and trading coach, Over 30,000 people credit Jason with teaching them how to trade and find profitable trades. Jason specializes in both swing trades and in selling options using spread trades, which balance the risk of selling options. Jason is Co-Founder of RagingBull.com and the RagingBull.com Foundation which donates trading profits to charity. So far the foundation donated over $600,000 to charity.

 

No doubt about it, there’s a lot of action in the market…

So much so, that some traders are faced with one common problem:

Decision Fatigue

When there are so many potential trading opportunities to pick and choose from, over time, the quality of decisions can deteriorate.

In other words, the more action there is, it wouldn’t be crazy if you realize start to make poor quality trades.

I can tell you it’s happened to me before.

The thing is, there is a way to help filter out the noise and prevent decision fatigue.

How?

 

The Solution To Decision Fatigue?

 

How many times have you woke up and just saw a bunch of stock moving…

And you think to yourself, “I’m going to trade some of these names.”

Only to pick the wrong ones and move against you, while the other ones make a move.

Then you chase the ones that continued higher, only for them to move against you…

And end up beating yourself about the decisions you made.

You see, just because there a lot of opportunities right now, it doesn’t necessarily mean you’ll make money on the.  

In fact, it can actually be detrimental.

That’s why I utilize techniques to filter down the thousands of stocks out there to just a handful.

By doing that, I’m able to narrow my focus and prevent decision fatigue.

I mean if I don’t think I can even analyze thousands of stocks a day, but even if I looked through just a hundred, I’d be tired.

My first step is to just scan for potential stocks that fit my criteria.

 

 

I also do this with my options plays.

Thereafter, I see if there’s a pattern or specific level that I believe can indicate where the stock can head, and plan accordingly.

Now, I get it…

Not everyone has a lot of time to do this because they have families and work full-time jobs.

That’s why I believe I came up with an even better solution to decision fatigue.

It’s called Rooster Report.

You see, I was once an elementary school teacher who didn’t have a lot of time to trade… I certainly couldn’t sit and stare and my screens all day trying to filter for stocks to trade.

That’s why I came up with a brand new strategy…

One that focuses on a single trade idea every morning, before the market opens.

This way, traders can plan their trades ahead of time and prevent decision fatigue.

How does it work?

I put together this special training clip to reveal to you how it all works.

 

 

Make sure to check it out…

If you’re ready to sign up, then be on the lookout for my next trade idea tomorrow morning.

Don’t miss out!

Author: Jason Bond

Jason taught himself to trade while working as a full-time gym teacher; his trading profits grew eventually allowed him to free himself of over $250,000 in student loans!

Now a multimillionaire and a highly skilled trader and trading coach, Over 30,000 people credit Jason with teaching them how to trade and find profitable trades. Jason specializes in both swing trades and in selling options using spread trades, which balance the risk of selling options. Jason is Co-Founder of RagingBull.com and the RagingBull.com Foundation which donates trading profits to charity. So far the foundation donated over $600,000 to charity.

 

Hey guys and gals,

On Monday, Ocugen Inc. (OCGN) was one of the hottest stocks on Wall Street…

 

 

Of course, I thought I was a genius locking in a $5,500 winner after the stock popped by nearly 40% from Friday*…

 

 

OCGN was part of my Monday Movers watchlist, which was sent out on Friday… and the stock exceeded my target.

When I looked back this morning and saw the stock at nearly a buck, I was kicking myself.

In other words, the stock was up more than 190% from my initial entry in just a few days.

Since I missed out on the bulk of the move, I want to go back to review the trade.

I’ll show you how I spotted it and what I could do better the next time I see this pattern.

 

I Left A Lot Of Money On The Table In OCGN…

 

On Friday, I sent out my Monday Movers watchlist at 2:29 PM ET.

I mentioned OCGN when the stock was around $0.33. 

The reason I put this on my watchlist was that the chart was a screaming buy to me.

 

Source: StockCharts

 

Notice how the stock made a large run up last week and pulled right into a support level?

That indicated there was demand for the stock and the buyers may overpower the sellers around there. 

Typically, when I see this pattern, the stock rebounds off the support level and tries to make a move and retest the high.

Here’s what I sent out on Friday…

But I’ll trade it small if I do cause it’s a $.30 cent biotech. Can’t find a catalyst on this but as far as charts go, I like it a lot. Buy zone is $.33 – $.35, goal is $.50ish and the stop loss is <$.28.

I was able to get in right around my buy zone… and the stock started to make a move into the close.

 

Source: StockCharts

 

On Monday morning, the pattern played out just as I suspected… and here’s what I sent out in the pre-market, letting subscribers know about my moves.

I took 30,000 shares off at $.43 and 20,000 shares off at $.462, over 40% on my investment Friday into Monday and EXACTLY what I hope to hit. Strong patterns are often an indication good news is coming and sure enough … CHEDDAR for breakfast! 

Currently trading at $.49

I debated letting it ride for what appears to be a possible breakout at $.50, but up 40%+ I just can’t risk letting this $6,000ish profit get away from me. It’s always tricky to decide how to handle letting a win run but I bought like $15,000 worth of stock here and just made about $6,000, for me I can walk away happy as hell.* As you can see one of the most active stocks on Wall Street. GREAT way to start the week. 

 

 

While I didn’t want to let my gains get away from me, I could’ve taken a different approach.

Here’s what happened on Tuesday…

 

Source: StockCharts

 

Of course, I missed out on the bulk of that move, but there are things I could’ve done differently.

For example, I could’ve sold half at my target and put a profit stop, and remained patient.

If I notice that pattern again, I will consider it a different exit strategy potentially.

I’m confident that this pattern will show up again.

If you want to learn more about my “weekend” strategy and how I’m able to uncover stocks poised to gap up on Mondays…

Then you’ll want to check out this exclusive training clip I put together.

 

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

 

Author: Jason Bond

Jason taught himself to trade while working as a full-time gym teacher; his trading profits grew eventually allowed him to free himself of over $250,000 in student loans!

Now a multimillionaire and a highly skilled trader and trading coach, Over 30,000 people credit Jason with teaching them how to trade and find profitable trades. Jason specializes in both swing trades and in selling options using spread trades, which balance the risk of selling options. Jason is Co-Founder of RagingBull.com and the RagingBull.com Foundation which donates trading profits to charity. So far the foundation donated over $600,000 to charity.

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