101 percent profit with options trading

Written by Jack Davis on . Posted in stock market strategy

I finished my first video presenting an account doubling on a live stock exchange account. In this I show again the transaction list of options trading. The video was recorded with a Samsung Galaxy S2 cell phone, it’s uncut, and was uploaded wholly to YouTube right after recording.

Watch this video, if you haven’t seen a doubled account.

I must add, that the applied strategy leading to this outcome is not a “How to get rich quickly”-scheme. Only with persistent learning and a lot of demo and later live practicing can you achieve such outstanding results.

I already made a video of this account before. That time it was 74% surplus. It started from about $14 thousand and now it’s over $28 thousand. You need to know, that only in the beginning was money transferred to this account, the starting amount, since then the profit hasn’t been taken out and more money hasn’t been transferred to it.

I still believe that you should learn stock exchange investment and trading from somebody who can show you results. Results are not meant as excel tables, profit charts, demo accounts and various anecdotes, but uncut videos made of live accounts or a transaction list of a live account demonstrated on a free presentation.

By applying non-directional (direction-neutral) strategies, such results can be achieved. As you can see, this strategy worked well before the previous video, after the previous video and I claim this will work after this video as well.

An advantage of a doubled account that you can take out the originally invested capital and from that time you can continue trading with zero risk concerning your initial investment.

If you want to see the numbers in the video, switch to HD (1080p) quality and full screen.

If you liked the video, log in to YouTube and click on “Like”.

The second stock market transaction list on the internet

Written by Jack Davis on . Posted in stock market strategy

I made another video about a live stock market account, which is in 43% surplus at the moment. On this account there was $10.000 ca. 8 months ago and now it's over $14.300. Since then money wasn't transferred to it, and the profit wasn't taken out.

The goal with this account was to gain 5% monthly profit, though this strategy allows to gain even 10-15% profit per month. The primary aim was to earn with the least time input much higher profit than bank interests. In order to do so, the number of stock market products was reduced to one and only oil future options were traded. This way it was enough to trade only 2-3 hours per week. The predetermined strategy allows us to check the accounts besides work, in the evenings and to carry out the necessary transactions.

This video is worth to see, because not only the transaction list is revealed, but I also show that the expiration of the options made a surplus in every month regarding to 2012.

If you want to see the numbers, switch to HD (1080p) quality and full screen.

Either you liked it, or not, click on "like" on Youtube :)

Feature of this video:

The video was shot with a cell phone in full HD (1080) quality, so it obviously can be seen that it's not manipulated or photoshopped. To draw an arbitrary profit chart or to create an excel table of fictive data is quite simple. But even a screen captured video (e.g. camtasia) can be easily manipulated.

Here you can watch my previous demo:

The first stock market transaction list on the internet

The first stock market transaction list on the internet

Written by Jack Davis on . Posted in stock market strategy

I made a video for you in which I show you a stock market account in 74% surplus. There was $14.000 transferred to this account 10 months ago and now it's on $24.300. Only once was money transferred to it, the starting amount at the beginning, since then money wasn't transferred to it, and the profit wasn't taken out.

Watch the video, because probably it's the first and last stock market transaction list what you can see. The first one, because there are only a very few successful stock market traders. And the last one, because if you don't start to deal with this issue, you'll never see something like this.

Switch to HD (1080p) quality and full screen to see the numbers.

If you liked this video, don't forget to click on "like".

Some features of the video:

  • It was uploaded to Youtube last night and it became the number one for the key phrase: "transaction list" after half a day
  • It's also number one for "How can we make 10,000 dollars in the stock market" key phrase on Youtube
  • The video was shoot with a cell phone with a full HD camera. I think it shows more, that it's not manipulated or photoshopped. An Excel table, a profit chart or a screenshot is easy to manipulate.

Implementation of Option Strategies for Directionless Markets

Written by Jack Davis on . Posted in stock market strategy

This is about to present the essence of a Strategy for Directionless Markets based on options with charts and explanations.

I'm going to demonstrate in a simple way how to implement such a strategy. I'm going to describe simplified both options and the strategy, so that even a beginner can understand.

Concerning to non-directional (or market-neutral) strategy the most important thing is that there are options whose value declines continuously with time and finally it drops to zero. A non-directional trader first sells options, then later he buys them back cheaper and the difference is his profit. In most cases a buy back is not necessary, options can be held until expiration, since that time the price is zero, so he can keep all the money made with the selling. There are two sort of options: call option and put option. If we sell the same amount of both, price-change doesn't matter, because we have long and short position of the same value.

For implementing SPX option strategy, we're going to use trading techniques called iron condor and vertical spread. Iron condor consists of selling two options and buying two options. We'll realize our profit of selling more expensive, than buying. At the enter of our position, we'll make money, and in most cases we can keep this money.

Entering the position we create this profit chart:

The horizontal axis is the value of SPX index. The vertical axis is the profit realized at the expiration of the options.

Immediately emerges the question: what if SPX leaves upwards or downwards our profit zone?

If the SPX approaches the upper or lower limit, our protecting techniques come into effect. There are several of them.

   A/ First, we sell on the opposite side to keep up the direction-neutrality of our position, meanwhile our expected profit increases.

   B/ If this correction is not enough to maintain the neutrality,  we buy back options on the side of the approached limit. As a last resort we buy back all the positions on the side closer to the price, cancelling the band-edge, so that SPX may leave the band without causing any loss. In this case iron condor turns into a vertical spread position.

   C/ Our position can be compensated and so be made direction-neutral by buying call or put options with later expiration.

In case of defensive technique B/, if the price rises and we buy back the positions on the top of the band, the profit chart will be the following:

In case of defensive  technique B/, if the price falls, and we buy back the positions on the bottom of the band, the profit chart will be the following:

Note, that during the non-directional trading - counter to directional trading - we don't need to find out the direction of the move of the SPX index. We only follow the events (either rise, or fall) and correct the position in order to maintain direction-neutrality. Meanwhile, as time passes and expiration approaches, value  of the position rises.

Using options makes possible to make money during sideways market. Real life results show out of 10 months: 8 are profitable, 1 in the red and 1 breaks even. A specific feature of non-directional option strategies is, that after a loss month the higher prices may lead to profit above average, so an unprofitable month can be worked off faster.

Warning! Don't start trading according to this description, since several important strategical parts were skipped to keep it short, such as margin requirements, delta compensation pending on vega and volatility, position building plan, stop-loss rules of defensive techniques. These are essential to gain a regular monthly revenue and if missed, your position might end up with loss.