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Dale Brethauer  // Posts published by Dale Brethauer

19 May Posted by in Option Vertical Spreads | Comments Off on Steady Monthly Income by, selling out-of-the-money near term options.

Steady Monthly Income by, selling out-of-the-money near term options.

Steady Monthly Income by, selling out-of-the-money near term options.

  Out-of-the-money options, in the near term month, lose their premium rapidly as they approach expiration.  An excellent strategy to take advantage of this phenomenon is to sell these options.  Set-up the trade as seen below: Sell options on non-volatile indexes like the small cap Russell 2000 index (RUT). Sell options with a probability of […]

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03 May Posted by in Candle Sticks | Comments Off on The Importance of the Exit Strategy (Part II)

The Importance of the Exit Strategy (Part II)

The Importance of the Exit Strategy (Part II)

  After entering the Abbott Labs (ABT) trade on 2/16 @ $46.77 and the May 42 call @ $5.05 we stayed with the trend until the beginning of April.  At that point the call had yielded a great return.  I was looking to exit at the first sign of weakness.  Two confirming signals: Fibonacci extensions […]

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13 Apr Posted by in Candle Sticks | Comments Off on The Importance of the Exit Strategy

The Importance of the Exit Strategy

The Importance of the Exit Strategy

Having specific trade entry and exit rules are imperative to successful trading.  I feel the exit of a trade is far more important than getting in.  Many “guru’s” gloss over or ignore this topic.  I have found that the combination of candlestick formations, Fibonacci extensions, regression channels and my proprietary application of the daily version […]

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