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Options Trading For The Holiday Season

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Options trading during the holiday season can be very profitable if you use the appropriate strategies. – PowerPoint PPT presentation

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Title: Options Trading For The Holiday Season


1
  • OPTIONS TRADING

Options Trading For The Holiday Season
2
Welcome to Options Trading Research Your premier
site for news and information on Profitable
Options Trading. For more info on Options Trading
visit our website www.OptionsTradingResearch.com
3
  • Get Your Free Report For The Best Options To Buy
    For 2016!
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  • at the end of the video!

4
  • Hi, My name is Steve and Im with Options Trading
    Research, today were reviewing our recently
    published article

5
  • Options Trading For The Holiday Season

6
  • Its just a week away from Thanksgiving hard to
    believe. The unseasonably warm weather could be
    making us forget just how close the holidays are.
    Were that much closer to prime shopping season.

7
  • The holiday shopping season is closely monitored
    by the investment world as well. Many companies
    make their money during this period of the year.

8
  • As a matter of fact, some companies generate over
    50 of their revenue in the fourth quarter alone.
    The biggest quarter for retail shopping can also
    provide some interesting investment
    opportunities.

9
  • There will be a lot of news reports coming out
    about how successful (or unsuccessful) the season
    has been for certain companies and industries.
    And, stocks tend to move on these reports.

10
  • So where does options trading come in?
  • Lets look at an example.
  • Heres the chart of TGT

11
(No Transcript)
12
  • The chart above of Target TGT is pretty ugly.
    The retail giant hasnt had a good year and
    recently announced even more disappointing news.
    As you can see, the stock is near 52-week lows.

13
  • So why look at such a big underperformer? Well,
    TGT is exactly the sort of company that could get
    a boost from better than expected holiday sales.

14
  • Where I live, people tend to form massive lines
    to get into Target stores for Black Friday deals.
    If that happens again this year, the company
    could get a much needed shot in the arm.

15
  • TGT is trading at a fairly attractive valuation.
    So, if the company announces strong holiday
    sales, value seekers will be sure to snap up
    shares. That makes it an ideal candidate for
    options trading strategies.

16
  • So what are the benefits to using options in this
    scenario?

17
  • Returning to the TGT example, lets say you think
    the company is going to do very well during the
    holiday shopping season. You also believe the
    stock could rebound from the current lows.

18
  • However, you are concerned about the risk of
    owning the shares given how poorly the stock has
    performed so far this year. Is this not an ideal
    situation to use options? More specifically,
    isnt this a perfect call buying situation?

19
  • (For more advanced traders, this may be an even
    better put selling scenario).
  • As a reminder, a call option makes money when the
    underlying stock goes up before its expiration
    date. Click the link for more specifics.

20
  • Buying a December or January TGT call option
    will allow you to participate in the immediate
    upside if the stock rebounds. Yet, youll only
    have to pay the very affordable cost of the call
    premium instead of the full price of the stock.

21
  • Whats more, the catalyst you expect to occur
    should happen in December, so theres no reason
    to buy options any farther out than January. Once
    again, this limits your cost and lowers your risk.

22
  • This is just one simple example of using options
    to take advantage of holiday season dynamics.
    There are a multitude of strategies you could
    use, made possible by the flexibility of options
    contracts.

23
  • Like I always say, using options is almost always
    preferable to using stocks when it comes to
    trading.

24
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26
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