A Proven Limited Risk Method To
 Trade Options And Receive An
Average Monthly Return Of 26%?

 Using the Simplicity Of Trading One Stock (The QQQ)
 With The Power Of Credit-Spreads...


Larry Swing
President of
MrSwing.com

 

 

 


Introducing QQQSpreads

If you're interested in trading options with limited risk
then this could be exactly what you're looking for.

Trading credit spreads in the QQQ is one of least risky and most highly profitable
trading strategies available to you.

Best of all...you don't need a lot of trading capital to start.

As you know...there are no guarantees in trading,
but if I only had one strategy to trade with options
this would be the one.

WHY?

Simply put...
it's the most easy to be consistently right,

You see...to be successful with credit spreads you don't
need large moves to happen...
 all you need is a small move up or down.
This is the beauty of it,
you greatly increase your chances of success.

But before we explain Credit Spreads...

 

Ok...So What Are Credit Spreads?

 

Credit spreads are basic limited risk hedging strategies that allow
 you to take advantage of the way options premiums change in relation
to the movement in an underlying asset....here being the QQQ.

You'd use a credit spread when you're focusing on the underlying asset's
 directional price movement (up or down).

What you would do is purchase one option and sell another,
where both options are of the same type (call or put)
and expiration (e.g. May) but have different strike prices. 

The option you sell brings in money and the option you buy requires
that you pay money.The option you sell is always going to give you more
money than the option you buy therefore giving you a "net credit."  

 

Here's An Example...

 

If you sell a $1 option and buy a 50¢ option,
you will be left with a "net credit" of 50¢.  

So the (number of contracts you trade) X (the "net credit") X (100) is
the total amount of money you will make on the trade.  

So, in this case, if you traded 10 contracts, you would bring in a profit
of $500 that would be available in your account the day after you made the trade

 

There are two kinds of credit spreads....

 

1.Bull Spreads
&
   2.Bear Spreads.
Bull Spreads can be either Call Bull Spreads or
Put Bull Spreads,
and Bear Spreads can be either Call Bear Spreads or Put Bear Spreads

A Bull Spread is a strategy involving two or more options that will
result in a profit from a rise in price of the underlying asset.
A Bull Spread would be implemented by an investor who was bullish on the
underlying asset but who is not bullish enough to buy a call option straight out
.

 

BULL SPREAD 
Call option is bought with a strike price of A and another call option sold with a strike of  B, producing a net  debit.
OR 
Put option is bought with a strike of  A and another put sold with a strike of  B, producing a net credit.  
WHEN TO USE: you think the stock will go up somewhat or at least is a bit more likely to rise than to fall. Good position if you want to be in the stock but are unsure of bullish expectations.  This is the most popular bullish strategy.

 

A Bear Spread is a strategy involving two or more options that will profit
from a decrease in the price of the underlying asset. This investor
is bearish about the underlying asset. One hopes to capitalize on what
one foreseesas a downward movement, but is somewhat more risk
averse than the outright buyer of a put.

 

BEAR SPREAD 
Put option is bought with a strike price of A and another put option sold with a strike of  B, producing a net  debit. 
OR 
Call option is bought with a strike of  A and another call sold with a strike of  B, producing a net credit.  
WHEN TO USE: you think the stock will go down somewhat or at least is a bit more likely to fall than to rise. Good position if you want to be in the stock but are unsure of bearish expectations.  This is the most popular bearish strategy. 
 

So Why Not Just Buy Or Sell A Call Or A Put?

 

Good question!
From our numerous studies and back-tests on the QQQ
and US stocks we've performed...


a common pattern has evolved that proves it's easier and
safer to trade credit spreads over a simple call or put.

Check out the example below involving a buy call with Intel...

11/28/2004. Intel Corp. (INTC) looks very bullish and
(according our technical analysis) should with 95% stay within the trading
range (see the chart below), i.e. above 32.50. The current stock price: 33.35
         
           INTC Strong Support above 32.50
 
Remember...
you must be very bullish on any stock to use a "Buy Call" strategy.
Stocks have to climb very high before your call option expires. Unfortunately...
this rarely happens very often. At the same time,
you cannot wait too long because the "buy call" time value erodes.
 
PARAMETRS
Open Credit Put Spread:
Buy to Open INTC Dec3 30 Put and Sell to Open INTC Dec3 32.5 Put with Credit 0.40
Buy to Open INTC Dec 32.50 Call at 1.60
BREAK-EVEN
32.10
34.10
MAX POTENTIAL PROFIT
0.40
 Unlimited
MAX POTENTIAL LOSS
 2.10
 1.60
What you loose, if the stock price drops to 32.00 on expiration
Loose 0.5 cents or 0.25% per day
 Loose 8 cents or 5% per day
What you earn or loose everyday, if the stock price stays unchanged (32.50) on expiration
 Earn 2 cents or 1% per day
 Loose 8 cents or 5% per day
What you earn or loose, if the stock price reaches 33.00 on expiration
Earn 2 cents or 1% per day
Loose 5.5 cents or 5% per day
What you earn or loose, if the stock price reaches 34.00 on expiration
Earn 2 cents or 1% per day
Loose 0.5 cents or 0.3% per day
What you earn or loose, if the stock price reaches 35.00 on expiration
Earn 2 cents or 1% per day
Earn 4.5 cents or 2.8% per day

 

So What's The Difference?

 

Our numerous back tests proved that even after strong technical signals,
positive upward movements don't last long.
 
 On average...
they are not extensive enough to justify initial investments in calls
(see the probability distribution diagram below).
For example, daily MACD signals give you only a 12% chance that
the option will move 5% higher or more. In our example, the break-even point
is exactly 5% above the current stock price.

   
Probability Distribution Chart

Are you ready to take this risk?
Are the risks worth the rewards?
 That's up to you...
but first take a look at the probability of success with a credit spread.

The same daily MACD signals give you an 85-90% chance
that the posistion will NOT drop below the break-even
points for a front month credit put spread. Yes...
that's right an 85-90% chance!
Now which do you think looks better?
If you are on the conservative side... go for "Credit Spreads".

Sign Up Now

Great...So How Much Does This Cost?

The price is just  $149.95 $99.95 a month...
for our introductory offer,
but only until Mon Dec 1 2008

But that's not all, you'll also receive
this bonus option strategies ebook...

 

Free Bonus:
A $69.95 Value

 

 Covers:
-COMMON MISTAKES MADE BY TRADERS
-KEY ELEMENTS OF AN OPTIONS TRADING SYSTEM
-STRONG TECHNICAL SIGNALS, IDENTIFIED
-HOW STOCK OPTIONS WORK, AND WHICH ONE TO CHOOSE
-KEY OPTION STRATEGIES
-"BUY CALL" STRATEGY
-"SELL NAKED PUT" STRATEGY
-"SELL COVERED CALL" STRATEGY
-"BULL PUT SPREAD" STRATEGY
-"BULL PUT SPREAD" STRATEGY
-"BULL CALL SPREAD" STRATEGY
-"BUY PUT" STRATEGY
-"BEAR CALL SPREAD" STRATEGY
-"BEAR PUT SPREAD" STRATEGY
-"BUY STRADDLE" STRATEGY
-"BUY STRANGLE" STRATEGY
-OPTION STRATEGIES COMPARISON
-RISK EXPOSURE AND GREEKS INTERPRETATION
- HOW TO USE PROBABILITY ESTIMATES IN OPTION TRADING -Q & A

There Is No Holy Grail In Trading...

If you're looking for a sure thing in trading you'll never find it.
It just doesn't exist...

QQQSpreads is not some magic theory,but it works,
and we would hold it up against any competing system...
it's been backtested rigorously...
and there is no reason it will not work for you.

So why continue spending thousands of dollars on testing
 to find out which strategies really make you money?

Why gamble your money on far fetched concepts
 that give you no meaningful methodology or signs of mathematical  probabilities,
So Sign Up Now

Remember...
keep it simple,you only need one strategy to win at this game. 

 
All the best!

Larry Swing (larry@mrswing.com)
CEO and Swing Trader from MrSwing.com

 

 

YES! Please Sign Me Up!

I  understand that you will bill my credit card for the very
special, low price of only $99.95
for every month I'm a paid subscriber...
rather then the regular price of $149.95 since
I'm a first time subscriber
and I'm enrolling before the deadline of :
Mon Dec 1 2008 .

Plus- I realize I'll be receiving the bonus
ebook worth $69.95

Click Here To Go To Our Secure Server
And Begin Receiving QQQSpreads

Once your credit card is approved,
you will be receiving the QQQSpread-alerts.

Those who never control risk, will never drink champagne - Disclaimer ©2004 MrSwing

 
Spread the QQQ (Nasdaq-100) like a PRO