AAPL 340 weekly Calls

May 30th, 2011

We are also watching AAPL for the 340 weekly calls. Friday these calls closed at $1.45 and if AAPL breaks above the $338.00 we see AAPL going to $348.00 this week. You can play it tight with a stop at $334.00 on the stock or give it more room down to $330.00.

The way we look at weekly options is we are risking 100% of the premium to get our profits. We are most always going for more than 100% so even risking all the premium our risk to reward is still favorable. Risking the whole option might sound risky or crazy to you but if you trade the correct amount of contracts it makes sense.

Let me explain: If you bought AAPL stock right now at $337.40 and had a stop at $334.00 you would be risking $3.40 per share. If you bought 1000 shares that would be a risk of $3,400. If you bought 10 call options at $1.45 your max risk is only $1,450. Which has less money risk $3,400 or $1,450?

So going into the trade knowing that weekly options are higher risk and we could lose 100% of the premium it is important to trade the same amount of options as you would shares of the stock. Just because options might seem cheap they are not. Options like futures are leveraged and if done properly the leverage can be your friend not your enemy.

Losing 100% of your option premium is like taking 100% of your stop loss but in this example even if you lost 100% of the option premium it is only like taking 40% of your stop loss using the option.

AAPL has yellow bars on the 60 minute chart and that means that a bigger than normal move is about to happen. The bigger pattern is still up and if AAPL breaks above the $338.0 the odds favor a move to the upside.

Of course offering the picks before the market is open has its downside because the market could gap down but nevertheless AAPL is one to watch this week!

Happy Trading,

www.eMiniSchool.com

BIDU Weekly 140 Calls

May 30th, 2011

Our last weekly call was on NFLX and it went from $2.50 to $19.00. We have found another weekly call candidate which is BIDU.

We are going to watch BIDU tomorrow and if we get a long signal we will enter the 140 calls for around .50 cents. The calls closed Friday at .40 cents.

We are looking for a move to the $142.0 level to take profits. These calls expire this week so look to see as BIDU goes into the targets.

Happy Trading,

www.eMiniSchool.com

Market Symmetry

May 30th, 2011

We use market symmetry on all symbols and on time frame to gain odds on turning points before the price is actually at the levels. This is a great tool for knowing when to stop trading in the trend or counter trend direction.

Happy Trading,

www.eMiniSchool.com

Sell NFLX Calls 630%

May 26, 2011

We are selling the rest of NFLX at $18.35. Our entry was $2.50 good for a 630% gain.

These were the 245 weekly calls.

Happy Trading,

www.eMiniSchool.com

NFLX Calls 500%

May 25, 2011

For those of you who played the NFLX calls you are up around 500%. The calls were as low as $1.50 but our entry was $2.50 and the calls are trading right now at $15.00 good for 500% gain.

Our target on NFLX is $270 which is 10 points higher from current prices. These are May calls so we would look to exit this trade tomorrow. Sell half now and hold the rest to see if we can get some follow through tomorrow.

Happy Trading,

www.eMiniSchool.com

AAPL Update

May 22, 2011

Over the last two weeks we have been playing AAPL with great success. Weekly calls and puts have increased over 300% in one - two day trades.

Of $330 is taken out to the downside we are looking for a move to the $310 area. Weekly puts would be a good way to play this move.

If the level where AAPL holds on Mondays open AAPL can build strength to break the last high at $342.50. This scenario does have less odds right now as our daily Kill Zone bars are red.

There will most likely be two waves down to the $310 level.

Happy Trading,

www.eMiniSchool.com

Core thoughts compared to variable thoughts

May 21st, 2011

Core thoughts compared to variable thoughts:

Your core thought process in trading is the most important part of your trading. These are the thoughts that you do not even need to think about. Just like when you see a red traffic light your foot automatically lifts off the gas pedal and goes over to the brake pedal. This is one of your core thoughts of driving.

Your core thoughts should be visual on your charts as well as being embedded in your mind.

Core thoughts:

*The clear direction you should be trading.

*Where your stop is located

*Exit strategy based on which type of signal

Variable thoughts:

Just because you know the direction of the market does not guarantee you will make money. This is why we teach how to read the condition of the market and how to know if the market is in minor or major waves. Most traders get stopped on the minor wave before the trade even had a chance.

Variable thoughts are what need to be fined tune over time. Our course digs deep into the variables of the markets. You think just because you know what an ABC pattern looks like you will make money every time the ABC happens? The question is not “Is this an ABC?” the question is what happens after the ABC?. Where is pattern completion? Where are the odds on the bigger time frame?

What is the odds of the ABC completing or failing? Did you know that there are just as many patterns that fail that complete?

Is this wave #2 high or B high short? The only way to answer this is to know what to look for off an A low and without understanding the core thoughts the variable thoughts will always seem random. Why did the ABC work this time? Why did it fail?

Most traders will benefit more learning the variables because once you understand the variables the core is automatic. We tell all of our members too look deeper into each thought and go with the thoughts into stage 3 and 4 and not get hung up on the 1^st more obvious questions.

The variable thoughts and methods are how you make money. The obvious core thoughts are just that obvious. Think back on your trading and ask yourself. “When I went long a breakout at an obvious high was it a easy trade to hold? Did I make money on it? Did I hold the trade long enough to make the true risk of the trade worth it?

Variable odds give you a way to flow with the market so you are not fighting it.

Variables are:

*Patterns

*Multiple Time Frame Patterns

*Failure of patterns

*What pattern has the highest odds of occurring after the current pattern completes

*What the chart should look like the night before

On average most traders still say that even when they make money it still feels random to them. Think about that for a minute .How crazy does that sound?

Happy Trading,

www.eMiniSchool.com