Methodologies

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Now in my 17th year at the helm of Options Hotline, I combine the best of western technical analysis with Japanese charting techniques to pick options for traders to vie for fun and profit, using the principles of Superleverage to turn small stock moves into great options gains with an always known and strictly limited risk.  As my father said, “It’s the only sensible way to speculate.”

In 1987, I was given good advice, “Study all the different methods of technical analysis, pick the one you like best, and use it.”  And so I began my studies.  I was fortunate to receive the first English translation of The Japanese Chart of Charts, by Seiki Shimizu.  I devoured the book and a couple things quickly became clear to me: No one in my office had ever heard of Japanese Candlestick charts; Japanese Candlestick charts are a superior way to view price action, vividly depicting the human behavior (buying and selling) that drives price movement;  and they can provide early warning signs for turns in the market.

I successfully apply the ancient Japanese charting techniques to today’s markets, using them to determine which side (buyers or sellers) has the advantage, to identify key levels of support and resistance, and to calculate when and where the balance of power is likely to shift.

Over the years, my interpretation of the Japanese charts has helped me guide Options Hotline subscribers through turbulent markets with a steady hand on the tiller, keeping them a step ahead of the crowd.

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Along with time, movement of the underlying shares has the greatest influence on an option’s price.  That is why we focus much of our analysis on the underlying stock.  But to grasp the full profit power of Options Hotline’s Superleverage method, you need to have the right option.

When you buy an option, you own a wasting asset. The time value portion of an option’s price generally decays at an accelerated pace as your option approaches expiration.  So why would anyone want to own a wasting asset?

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The answer unlocks the key to sensible speculation and our Superleverage approach.

Option buyers are the ONLY ONES who have all the benefits of leverage, including an unlimited profit potential, while possessing an always known and completely limited risk.  Don’t forget that risk is high; as it should be, for the opportunity to multiply your money in a short amount of time.

If you use sound money management principles in your trading and subscribe to a smart, steady, reliable service like Options Hotline, you are well on your way success in the often-thrilling world of option trading.