In this video the Hughes Optioneering Team will explore the three step trade selection process they use to select option trades with high accuracy.
Learn how the three step trade selection process allows you to identify options with the best profit potential and identify a low-risk entry point for your option trades.
We will also learn how to select an option strike price that only requires a 1% price move in the underlying stock to break even and start profiting on our option trade.
A 1% price movement in the stock to start profiting has a much higher probability of being profitable compared to option strike prices that require a 10% to 15% price move in the stock to break even which may not happen before option expiration.
Of course, if the expected price move does not happen before option expiration you may incur a 100% loss on your option trade. Actual option trades will be used as examples to demonstrate the ability of the three step trade selection process to select profitable option trades.