Gaps, Statistics, and Candlesticks: $3,000 to 1 Million via Trading Options

[verial]

So buying calls means you expect the price to go up, and puts are the opposite? And selling puts is the same as buying calls, and selling calls is the same as buying puts?

No, selling calls in not the same as buying puts.

My man, I made a video just for you!

http://youtu.be/Az1SR8cFE8w

Watch it here!

 

[lawrence-lugar]

What's the current account value?

 

[verial]

What's the current account value?

$5880.

But because I'm starting a new options-trading newsletter, I'm not going to be updating this thread anymore (conflict of interest).

However, if you have any questions about trading price gaps, please ask them here. Basically, gap-trading is a three-step process:

1. Find a gap.
2. Determine the gap type (Area/dividend/exhaustion/amateur: gap will fill; breakaway/continuation/pro: gap will widen)
3. Confirm 2-5 days after the gap, using candlestick patterns, that the stock will indeed go in the direction that the gap implies.

That's the safest form of gap-trading.

The type of gap-trading I used in this thread integrated this type of gap trading with some other strategies, such as sideways strategies that take advantage of increased implied volatility after a gap, which in turn increases the price of options, thereby allowing us to get more profit from writing calls or puts.