Thread by @Bjybnf

Telling my 8 years of experience in 5 min. The best strategy for options trading.

1⃣Buy calls around double bottoms or triple bottoms, or buy the stock around
double or triple. By this I mean, if a stock has held at a low level,
then advances; then reacts to that same low level months later and makes a
bottom, this would be a double bottom.

Then if it advances and reacts the
third time to around the same level, this would be a triple bottom.

Reverse this rule at tops. Buy puts around double or triple tops, or sell the
stock short, and buy calls for protection in case the stock should cross the
old tops.

It is always well even when stocks are moving very fast and are active to wait
several weeks or several months if a stock holds around a bottom or top before
you buy calls or puts, giving the stock time to complete accumulation or
distribution.

Because this has to take place before there is a reverse move of a
large number of points. You can easily see this by a study of past action of
stocks on charts.

2⃣Buy calls when old levels are crossed. If a stock stays for several weeks,
several months, or even several years in a narrow trading range around top
levels, then it breaks over the previous tops, it
certainly will indicate activity. That is the time to buy a call.

Reverse this rule when a stocks holds for a long time around low levels, then
breaks the first support point. Buy puts or sell the stock short and buy
calls for protection.

3⃣When a stock holds for several months around the same level and fails to
break the first support point, buy a PUT and buy the stock when it begins to
show activity, or buy a CALL as soon as activity starts on the upside.

Reverse this rule when a stock holds for several months around top levels and
fails to cross the first top. Buy a PUT when activity starts on the downside or
buy a CALL and go short.

4⃣After a stock advances through an old top where it has held for several weeks
or several months, and advances several points above this top, then reacts to
the old top, buy PUTS and buy the stock, or buy CALLS.

Reverse this rule in a bear market. When a stock breaks through an old
bottom and goes several points below it, then rallies back to the old bottom,
buy CALLS and sell short against them, or buy PUTS.

5⃣In a Bull market when trend is up wait for a reaction of 5, 10 or 12 points, then
buy CALLS, or buy the stock and buy PUTS to protect the purchase.

In a bear market, wait for rallies of 5, 7, 10 or 12 points, then buy PUTS,
or sell short and buy CALLS to protect the trade.

6⃣Buy a CALL when a stock reacts 40 to 50% of the last advance or buy the
stock and buy PUTS to protect it.

Reverse this rule in bear market: Buy PUTS when a stock rallies 40 to
50% of last move or buy CALLS when it rallies to protect short sales.

For
example: Suppose a stock advances from 100 to 120. A decline to 110 would
be one-half or 50% of the advance. If all indications point to a bear market with the main trend down, then you would buy PUTS when the
stock rallied 40 to 50%.

Today we understood how to do options trading properly. I post such threads every day.
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