11/7/2010 8:43:17 PM
Each week, Stock Options Speculator identifies the next likely move in the market (up or down) and then scours the various indices and ETFs to identify the top 10 options plays in each - giving you the highest probability of profit.
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SOS Timing Indicator
This week the indicator is more overbought, options players are reaching an extreme and a pull back is quite likely. PUT Plays are recommended.
This week we're also modifying the format somewhat. We've added 40 more options for your consideration and a look through the various industries, so you have more to choose from.
Stock Options Speculator uses the above indicator in the establishing of various options trades and strategies. The indicator has two frames. The top frame shows the Nasdaq Composite and the Nasdaq Advances and Declines. The lower frame shows volatility (candles), the equity put call ratio (red line) and the Trading Index (blue line). The height of the indicators determines if call or put buying strategies are recommended.
Options Trading Ideas
Based on the SOS Timing Indicator or other special market conditions, the below top 10 trades for each indices are recommended for consideration in your trading plan.
Entire Market Top 10 List
Nasdaq 100 Top 10 List
Index ETFs Top 10 List
Russell 2000 Top 10 List
S&P500 Top 10 List
How to interpret these lists
Each list is sorted by the Bearish % to Double. This is all you need in movement in the underlyer to earn 100% on your option trade.
The Week Ahead
The market is extended to the upside and while that can continuefor a while longer, the larger potential move is to the downside - making PUT options plays here potentially very profitable.