This is a very simple trade. I've build a career on this one trade from when I was a stockbroker, a trading instructor, Investment pool manager, as well as for myself.
1.)I will buy calls if the price is around 12.35 - with a strike price of 13.5 and 2 months out. If it drops to 10-12 - then I'll buy more calls with the same strike price and month as previously mentioned. I'll take profit once there is a pop above 14.35 - cashing in around a 25-50 percent profit 2.)I will buy puts if the price is at 16 - Ill buy the 13.5 strike price 2 months out and if it stays above - in the 16-20 plus range- I'll buy more puts. I will wait for a pop down to under 13.5 - and usually profit anywhere between 35-125 percent. This is definitely a" keep it simple trade", which also does not require that much money. I used it for students to build up their accounts so they can fund their forex accounts (the only other instrument I recommend trading). I also use it in my closed fund for my members as well as an additional source of revenue. Remember this is a simple trade not an investment. Joseph T. Duffy The VP of Investments and Financial Advisor as well, claimed it was a "keep it simple stupid" play. Mr. Duffy is an expert is in the realm of investing in funds - mutual and hedge funds- in which I believe is the best thing to do (coming from a stockbroker) when investing. Questions? My email - Daniel@teachingcurrencytrading.com - Teachingcurrencytrading.com - Daniel Graham Alhanti Owner and Head Trader Joe Duffy's is joseph.t.duffy@chase.com
Disclaimer - In no way shape or form do the opinions expressed by myself or Mr. Duffy represent the opinions of the Foreign Exchange Trading Academy, LLC nor JP Morgan Chase Investments on any level period. This is strictly a trading idea. Trading derivatives is risky, please speak with a professional Financial Advisor like myself or Mr. Duffy before trading commences.
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