Monthly Trader Alert | May

MONTHLY TRADER ALERT

On 4/26 I sent out an alert saying that the 61.8% retracement level
on the DOW (11,247), could be a good time to go short.

The alert also mentioned a potential high risk position that I was taking
was to short a 3X long ETF.

It also specifically mentioned shorting DRN at $230.

A few days later that ETF had a 4X split, so it would then be worth
$57.50.

Today as the market plunged, DRN got as low as $35.01, which means
you could have made as much as 39% profit in one week if you had
shorted it.

I did cover some of my short positions today, but I don’t think the
selling is over yet.

The market basically did exactly what was said by Dave in the Daily Market Advantage
… it just happened faster than he expected.

The DOW went all the way down to 10,000 before bouncing, and if you
didn’t have any buy/sell orders in place you probably missed it
altogether.

I am looking forward to Dave’s analysis to see what’s going to
happen next.

Members of the Daily Market Advantage receive his insight EVERY
trading day.

If you’re not yet a member you can get more info at:

http://www.diversifiedoptionstrading.com/go/DMA/

In addition to the daily reviews, Dave also posts “mid-day updates”
from time to time, with valuable up-to-the-minute tips.

It’s important to stay alert and be aware of the changing market
conditions, and the best way to do this is to join the Daily Market
Advantage.

http://www.diversifiedoptionstrading.com/go/DMA/

Honestly, I would not trade without it!

Dave F.
Diversified Options Trading

P.S. Remember, everything you learn in the Diversified Options Trading system is used in the Daily Market Advantage.

DISCLAIMER: No personal investing advice is implied or stated in
this communication. The information presented is for educational
purposes only and should not be construed as personal legal or
investment advice.

The Advantages of Trading Stock Options

Stock options are only recently getting the attention which they deserve from traders. The implications made by popular figures that trading options are too risky have been lingering for some time now. This is not something that you should take to heart. While some talk of the disadvantages one must always know that where there are disadvantages there are also advantages. As with any other business it will consist of losses and gains. There are no two ways about it, a loss will always be present but you must have the knowledge to cut your losses fast and let your profits take you home.
Stock Market Investing
Stock options are well capable of leveraging or borrowing money in order to increase profits. A strategy known as stock replacement will allow you to mimic stocks in a cost efficient way. Consider if you are able to purchase 200 shares of $50 stock, a payment of $10 will be maid but at the same time if you were going to buy $20 stock options representing 100 shares each then one would only pay $4 instead of $10. This would allow you to profit $6 to use in your discretion. Of course it won’t be as quick as just stated but the right stock is chosen then your strategy would be a success.

With stock options you can actually be able to spend less money and still make the same profit. With this you can make a higher percentage of profit as with normal stock trading. As compared to traditional stocks these options can offer much more strategic alternatives due to these options being more flexible. Options are the rights to trading a particular stock so you can see how it will allow you to see endless possibilities. Many ways can be used to profit one’s self by exploring different options for that stock.

The use of stock options allows the investor to trade more freely. These trades don’t only depend on the stock movement but also the passage of time and the unpredictable movements in the market. This can be extremely beneficial to the trader as most stocks rarely move significantly. These options offer a trader to do business in every type of market, allowing them to earn more profit. These are some of the many advantages of trading stock options and as you can see it is more than enough a reason to tell that this will benefit you tremendously. It is no surprise that stock options are part of financial circles today with its low costs, access through the internet and with endless benefits.

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