Today I've invited Bec from MarketMum.com to come and show everyone what she's been using to trade options in this market. I've been reading her for a while, and I was finally able to contact her so she can teach us men a thing or two! So please enjoy the article and feel free to comment with your own thoughts and opinions!
A big thanks to Adam for choosing me to be a guest blogger on his site, I feel very honoured! Before we get into the details of my latest strategy, I think I should introduce myself a little better and tell you about myself.
My name is Bec and I'm a stay at home mum from Australia. I was introduced to trading in November 2005 and was hooked from the get go. After some success and many failures, I decided to set up a website for others out there like me, who needed information and education on how trading worked, but more importantly, see how someone else was trading the market, real-time! So I decided to place my trading diary online and thus MarketMum.com was born! I have since written a couple of ebooks and produced a charting video home study, as I was tired of the enormous prices that some so called "experts" charged to learn
I mainly use 3 strategies, sell puts with protection for income on stocks I want to own, if I am excersised and have to buy the stock, I then revert to a collar strategy, which implies buying the stock, protecting it with a put option, usually protecting about 85% of my capital, and then in addition to this, I sell covered calls over the stock for more income. This strategy works really well in a sideways market, and has worked great in the current market. The last strategy I use in between the first two, called a strangle, which is the strategy I am telling more about in the video below. I find using these 3 strategies has greatly increased my profits and my philosophy of "always being in the market", works well with the synergy they provide.
So now it is 2009 and my trading has grown from strength to strength, and I have many wonderful members of my trading diary! Now without further ado, I have great pleasure in announcing my latest strategy called, Market Mum’s Strangle Strategy!
Simply put, I am doing a strategy known as a Strangle, with my own little twist thrown in for good measure.
The Strategy involves buying a Call Option and a Put Option, at the same time, as ONE TRADE! This hedges yourself in the market either way, so the market can move higher OR lower, and we profit BOTH WAYS!
I’ve put together a Trading Tutorial on how it works, with all the ins and outs for you to watch at your leisure, as if you are anything like me, you are a visual learner, and prefer to see what is being taught to you.
I post all my trades on my blog, and from there I keep you updated of results and new trades as I place them.
I’m so excited to be able to present this latest strategy to you all today, and I hope you are as excited and pumped about it as I am! Please watch the tutorial today, but come back and comment on the Trader's Blog.
As always, I value your feedback and comments, so please leave a comment. That’s all for now, thank you for allowing me to share my story and strategy!
Happy Trading and remember…
Mum’s the Word!
Rebecca "Bec" Hilbert