Weekly Options Trading System

 

Weekly Options Trading System

The trading of weekly options has increased exponentially over the last few months with no apparent end in sight. Traders seem to love the short-term nature of weekly options as it allows for easy trading of 1-day events such as earnings, FDA announcements, conferences, etc.  Having traded binary options almost exclusively over the last year, after years and years of traditional options trading, I understand the advantages of making short-term trades especially around events.

I’ve incorporated a decent amount of weekly options trading of late into my overall trading activities after finding a disciplined system I could easily implement and generate solid results. I’m now sharing this system with you to hopefully gain greater insight and a different perspective on this weekly options trading system, so please feel free to leave comments below. There is no cost to start using the system (no payment information collected), so take advantage of the no strings attached trial offer by clicking on the link below:

Click Here For Your Free Weekly Options Signals Trial

The MarketClub technology serves as the underlying signal provider for this weekly options trading system. Follow the steps highlighted below to set-up your account and begin to trade. And like I mentioned before feel free to leave comments below to express your thoughts on the system, provide trading tweaks, and in general give back to your trading peers.

Step1: After signing up for your free trial to MarketClub you should immediately create a portfolio and add your target list of names. You’ll probably want to stick to a core set of highly liquid names to start. Click on the ‘Portfolio’ tab and select the ‘edit portfolio’ option.

Step 2: Click on the ‘Alerts’ tab and set the scan type to ‘Weekly Trade Triangles’ and symbol to watch to ‘Entire Portfolio’.  Change the frequency tab to your preference. Once an hour and once a day are the most common choices for this option.

The weekly trade triangles will be the key determinant in deciding whether to enter a position or not. The weekly triangles are created using a proprietary MarketClub algorithm consisting of various moving averages and stochastic indicators. For real time accuracy we would suggest traders check and constantly update the weekly trade triangle scan sheet within MarketClub as sometimes the signals can get caught up in an email vortex.

To access this chart below, click on the ‘Smart Scan’ category, and select the ‘Trade Triangles’ tab. Make sure to choose the appropriate asset class and time frame for your scan above the chart.

Step 3: Click on the orange button in the far right column for your trade candidate to access the chart analysis and score for your candidate. For weekly call options candidates you’ll want the total score to be as high as possible (+75 and over) and for weekly put options candidates you’ll want the total score to be as low as possible (-75 and under). The higher (lower) the total score, the better for your weekly call (put) candidates.

Step 4: Within the score you’ll want to pay particular attention to the second Triangle (New 3 Day High/Low). This is the one, second from the top that will generate a positive or negative short-term signal for you. If the Triangle is GREEN, you should then confirm the signals’ viability status with the fourth Triangle (New 3 Week High/Low). The odds are in your favor that the trend will continue if both the Daily and Weekly light are both corresponding in color. If both Triangles are GREEN, then a positive movement is likely and a weekly call option purchase should be considered. If both Triangles are RED, then a negative movement is likely and a weekly put option purchase should be considered. If the Triangles differ in color then you should stay on the sidelines.

Step 5: Now that you know the specific name (ticker) and direction (call/put), its time to place a trade. We’ve had the most success trading deep-in-the-money options using this strategy, so try to target calls and puts with delta around 70%. Trading deep-in-the-money weekly options allows you to avoid the full brunt of the rapid time decay (theta) inherent in weekly options.

In summary, the Monthly Trade Triangles determine trend and possible entry points. Weekly Triangles determine timing: exits, entries and re-entries. The last triangle issued on the monthly chart should always be used to identify the overall trend. Key Rule: always make sure your weekly and monthly triangles correspond in direction.

We’ll be posting results gained from this system over time, so check back in to see how we’re doing and post the results you’re seeing using the system. Happy Trading!

Click Here For Your Free Weekly Options Signals Trial

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