Did you see this divergence on SPY right at the end of the day on Friday September 30, 2022
The MACD on the 30 minute chart clearly shows SPY should be higher in price. We waited until Monday October 3rd in the first hour of trading and still got in at under 10c an option. Let me explain.
The 30 minute divergence on the 30th showed us prices should be higher.
Come Monday morning, we started looking for options on SPY. We want low premiums so we want:
- Out of the money options
- Trading at less than 10c
- Expiring as soon as possible (October 5th)
In the first 30 minutes of October 3, SPY was trading at 361. nearby out of the money options in the 362 - 375 range were over 10c. Options too far out of the money like 382 or above have insufficient time to gain headway.
We selected a middle ground and bought the SPY 379 calls expiring October 5th, for under 10c. The 5 minute chart shows the SPY 379 calls expiring October 5th trading up as high as 25c with an entry under 5c during the day on October 3.
Clearly between 5 and 10 times your money.
Want to learn how we do this?
https://www.theoptionshunter.com/2021-sale-page-v2
The Options Hunter approach focuses on divergences between the MACD and the price action. We don’t employ other indicators such as RSI, Stochastics or Bollinger bands as we keep our approach simple, straightforward, and repeatable
What are Weekly Options and Why Do I use them.
Weekly options are a great way to make money, but it can also be incredibly volatile. Trading weekly should only really be considered for experienced traders who know what they're doing because there is no guarantee that any profits will even exist in the first place!
How do Weekly Options Differ from Monthly Options?
Weekly options and monthly options are similar—the primary difference between the two lies in the expiration dates. Monthly options expire every month on the third Friday of the month, whereas weekly options expire almost every Friday and are issued on Thursdays.
Traders who were previously limited to just 12 options expirations each year with monthly options can now capitalize up to 52 expirations by adding the tool of trading weekly options to their trading portfolio.
Weekly Options are More Cost-Effective than Monthly Options
Weekly options are the best way to invest in a stock when you need maximum profit within quick time periods. They provide guaranteed market moves that last only for max two days, which means there is no risk associated with these trades because traders can always sell them before their holding period expires and make back all their money plus some extra!
Weekly Options Listings Feature Popular Stocks and Indices
Weekly options are less expensive than shares of the stock and cheaper than standard monthly ones. This is because traders have only a couple days to wait for their underlying stocks price prediction before they expire, so there isn't time sensitive premium in play here with weekly option trades - though this does mean quick opportunities can present themselves more quickly at times! The increased volatility within your holding period also
Weekly Options Maximize Profit Potential
Weekly options allow traders to profit during any kind of market environment. The short-term nature of weekly options trades calls for efficiency in a fast-paced stock market that can be highly unpredictable for long-term investments. With weekly options trades, traders can benefit from buying cheaper options and then selling them for more than purchased within a short period of time.
Regardless of the price movement, it is always possible to see triple-digit returns with weekly options buying. Unlike stocks that only benefit investors if the stock price increases, weeklies let traders benefit regardless of the stock price direction.
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