OPTION TRADING STRATEGIES

Regardless of the strategy you are going to use we have made the alerts as easy as possible so that the new and experienced traders can both take advantage of our alerts and trade them profitably.

1. BUYING CALLS: Finding a profitable call option takes skills, knowledge, and a deep understanding of how options are priced. When you buy a call option, it means you are bullish on the stock market, the index, or the underlying stock. You might wonder where we can find these ideal stocks. At EZ stock options we use technical analysis to find strong stocks that are either breaking out through a resistance level and are leader in their sector, or have pulled back from their high and bouncing back from a Fibonacci retracement support level. We make sure that the options are near in-the-money so a small price change in the stock can still bring you profit. The options' premium price is lower than $10.0 per option contract so everyone can afford to trade them. Since the time decay increases in the last 30 days, we exit the trades at least 1 month to the expiry date. Our average holding time is about 15 days.

2. BUYING PUTS: When you buy puts, you profit when the underlying stock goes down in price. At EZ Stock Options we are looking for either stocks with definite signs of weakness that are breaking down or stocks that are extremely overbought and pulling back from a Fibonacci Extension resistance level. We make sure that the option is near in-the-money so a small price change in the stock can still bring you profit. The options' premium prices are lower than $10.0 per option contract so everyone can afford to trade them. Since the time decay increases in the last 30 days, we exit the trades at least 1 month to the expiry date. Our average holding time is about 15 days.