Crowder's Stock Option Strategies
  June 5, 2011
High-Probability, Mean-Reversion Strategy
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The High-Probability, Mean-Reversion strategy is now up 40.2% since it was initiated seven months ago with a win ratio of 93.3%. The strategy advanced 7.2% for the month May.

Obviously I am pleased with the win ratio (93.3%) since I initiated the High-Probability, Mean-Reversion strategy, but I am a realist. I realize there is no holy grail in trading. 

One thing that I do know for certain is that I have a unique, concrete, and most important, a profitable options trading strategy that makes the world of sense to me and I trade it to make money over the long-term.

Furthermore, I realize that the less I trade, the better my strategy will perform over the long run: and the long run is what matters. Hopefully, I can continue my winning ways and extend the gains going forward. Remember, this is a marathon and not a sprint.

The key to my strategy is patience. Waiting for the appropriate scenario to recommend a trade with a high probability of success is what makes my strategy a success.

Opportunities are made up easier than losses. If you let a few pass you by don't dwell on what could have been. There will always be more opportunities around the corner. Again, this a marathon not a sprint.

Check out the results here: High-Probability, Mean-Reversion strategy

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High-Probability, Mean-Reversion Indicator

(as of close June 3, 2011)

 

The major market indices have moved lower for the last five weeks. The S&P 500 has yet to break through what has been strong support, but has recently pushed into a short-term oversold state along with the Dow (DIA).

 

The RSI (2) has yet to confirm for both of the aforementioned ETFs, but I would expect to see a signal if we move lower during Monday's trading.

 

As for the rest of the ETFs only Retail (RTH) and the Dollar (UUP) have moved into a short-term extreme. Both have RSI (2) readings below 5.

 

Another dip on Monday and we could see a few trades in several of the ETFs I follow. So, with that being said, be on the lookout in your email and twitter accounts.

 

High-Probability, Mean-Reversion Indicator  

 

  

The New Options Strategy Using Credit Spreads

 

The time has finally come. After months and months of discussing the introduction of a new income-based credit spread strategy I have finally decided to take action.

 

Much of the strategy will depend on the High-Probability, Mean-Reversion Indicator and will predominantly use bear call spreads or bull put spreads to take advantage of a short to intermediate-term set-up. However, there will be the occasional Iron Condor thrown in for good measure.

 

I do not want to limit the trades to the same month after month, same trade at the same time of month that many other newsletters use. I want to actually use the ETFs I follow and their short-term overbought/oversold status to dictate the trade and take advantage accordingly.

 

The new strategy should be a welcome addition to the line-up here at CrowderOptions.com. I just hope I have the same success that I have had so far with the High-Probability, Mean-Reversion Options Strategy.

 

Remember, I offer a 30-day Free trial so take advantage of it by following the strategy to see if it is something that you feel comfortable using in your current portfolio. There are lots and lots of options strategies out there. You just have to find several that suit your taste and just like an investment portfolio diversification is key. Don't limit yourself to one options strategy - diversify.   

 

Again, I hope to bring you valuable trading information on a weekly basis, oftentimes more, in my Free newsletter. As always, please do not hesitate to email me with any comments, suggestions or additional items that you would find helpful.

 

Kindest,

 


Andy Crowder
CrowderOptions.com

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