The Volatility StrategyRL2022-11-01T19:38:26+00:00
TRADE ALERT SERVICE
The Volatility Strategy
This strategy identifies opportunities that exhibit a combination of both unusually low options volatility and Elliott Wave corrective patterns. A Strangle option strategy is used to capture profit from increasing option volatility during the ensuing break out from the consolidation pattern. Where a sufficiently low level of volatility in options pricing exists, we can have a reasonable expectation of an increase in volatility to historical levels.
– 3 to 4 Trades Per Month – Avg. trade duration 50 days – Maximum 10 open positions
Profit regardless of market direction
Markets obviously don’t trend and consolidate at the same time. Therefore, each strategy provides trading opportunities at different times during the markets’ cycle through bullish periods, consolidations and bearish periods. In summary, the Volatility Strategy, allows you to cover the market in both directions and gives you more opportunities to profit.
The Volatility Strategy provides a built in hedge or risk management that the Impulse Strategy doesn’t naturally provide. In summary, because the Volatility Strategy is non-directional, it typically has Calls and Puts in every position. This means that if there is an unexpected large move in the market, either to the upside or downside, the EWO Volatility Strategy positions become profitable.
We suggest starting with USD$10,000, however this strategy can be traded with a minimum USD$5,000.
If you have a larger account size, you may be interested in a “High-Value” subscription which includes trade alerts for opportunities that exceed risk management criteria for our recommended account minimums.
Risk management is our primary consideration when it comes to our trade alerts service and educating you on our trading strategies.
In general, our risk management guidelines recommend that you risk no more than 5% of available trading capital in any position. We therefore never exceed an initial position value of $500 per trade for our premium services.
EWO Volatility Strategy in action! In this trade review for JD (JD.com) Rob provides a great example of a volatile stock that tends to move both up and down a lot. When the stock consolidates, it becomes a great candidate for one of our unique Strangles that can capture [...]
EWO Volatility Strategy in action! In this trade review for SLV (IShares Silver Trust), Rob details the basics of our rules for setting up Strangles with consolidation patterns and that when our indicators line up, one can experience a nice breakout move with a better than average gain. This [...]
Elliott Wave - Triangle within a Triangle! In this Trade Review for Nucor (NUE), Rob explains how the rather unique pattern of a "triangle within a triangle" was a great setup for one of EWO’s unique Strangle positions. In addition, Rob explains how he uses the ADX as an [...]
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