The Options Market is Hot!
There's never been a better time to trade options than now...and I've got an exciting announcement to share with you on this front in just a second. But first, just look at this news that just came out earlier this week: "The Chicago Board Options Exchange (CBOE) announced that a seat, or membership, was bought at a price of $1,250,000.
This is a new record seat price at CBOE, surpassing the previous high of $1,150,000, set on March 24, 2006. This seat sale was the twenty-sixth of the year and the thirteenth seat that was sold for at least one million dollars during 2006. The high seat sale for 2005 was $875,000." Folks, just last year, seats were going for only $320,000 -- so this represents nearly a 400% increase in just a year's time! Add to that the fact that option trading volume for January on the CBOE was up over 55% from the previous year and you can see why I am saying options are hot! With brokers falling over themselves to cater to option traders, upgrading their online trading interfaces, providing option trading education, and more and more people getting comfortable with trading options, this trend is likely to continue.
And as you know, my brother Pete and I are huge fans of trading options. But we've made our fair share of mistakes over the last 20 years, learning what to do and what NOT to do. These mistakes cost us money, but those hard lessons learned are the main reason we can do what we do today -- that is, make consistently profitable option trades. For instance, if you are a subscriber to our InsideOptions.com trading service, you've had a pretty darn good week!
Skyrocketing oil prices have created numerous trading opportunities. One of those we identified back on April 5th was CSX. We took a position in the April 65 calls at .70 cents. On April 11th, we advised taking 25% off the table as those options had jumped to $1.15. With earnings expected on April 18th, the stock gained additional momentum as traders placed their bets, and those same April 65 calls jumped again to 1.50. Showing discipline, we took another 25% off the table on April 17th. And of course, on April 19th, earnings came in way ahead of expectations, and the options skyrocketed to $5.30 where we unloaded the final 25% of our original position for a final gain of 642% .
One of the biggest mistakes I see option traders make is not being disciplined and taking profits along the way like this. After the initial move in CSX, we had recouped our initial investment and let the rest ride for free...and boy o boy, what a ride it was! This trading discipline is exactly what I teach in my new options trading course that I've just released.
"Jon Najarian of Insideoptions.com"
Also check out:
Options 101 Home Study Course CD & DVD:
http://tinyurl.com/qczaw
This is a new record seat price at CBOE, surpassing the previous high of $1,150,000, set on March 24, 2006. This seat sale was the twenty-sixth of the year and the thirteenth seat that was sold for at least one million dollars during 2006. The high seat sale for 2005 was $875,000." Folks, just last year, seats were going for only $320,000 -- so this represents nearly a 400% increase in just a year's time! Add to that the fact that option trading volume for January on the CBOE was up over 55% from the previous year and you can see why I am saying options are hot! With brokers falling over themselves to cater to option traders, upgrading their online trading interfaces, providing option trading education, and more and more people getting comfortable with trading options, this trend is likely to continue.
And as you know, my brother Pete and I are huge fans of trading options. But we've made our fair share of mistakes over the last 20 years, learning what to do and what NOT to do. These mistakes cost us money, but those hard lessons learned are the main reason we can do what we do today -- that is, make consistently profitable option trades. For instance, if you are a subscriber to our InsideOptions.com trading service, you've had a pretty darn good week!
Skyrocketing oil prices have created numerous trading opportunities. One of those we identified back on April 5th was CSX. We took a position in the April 65 calls at .70 cents. On April 11th, we advised taking 25% off the table as those options had jumped to $1.15. With earnings expected on April 18th, the stock gained additional momentum as traders placed their bets, and those same April 65 calls jumped again to 1.50. Showing discipline, we took another 25% off the table on April 17th. And of course, on April 19th, earnings came in way ahead of expectations, and the options skyrocketed to $5.30 where we unloaded the final 25% of our original position for a final gain of 642% .
One of the biggest mistakes I see option traders make is not being disciplined and taking profits along the way like this. After the initial move in CSX, we had recouped our initial investment and let the rest ride for free...and boy o boy, what a ride it was! This trading discipline is exactly what I teach in my new options trading course that I've just released.
"Jon Najarian of Insideoptions.com"
Also check out:
Options 101 Home Study Course CD & DVD:
http://tinyurl.com/qczaw
posted by Learning Coach | 6:20 PM
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