Rule #2. Stalk call or put options two
to three days before placing your day order(s). Record their daily
closing values when you recognize potential robustness in Force
Vectors. The daily reports will help you identify them.
As the Force Vector matures into a robust
bullish cycle, start placing day-orders with your broker for the call option. The
above schematic illustrates a call option tactic. The following is a more
detailed discussion of the above schematic.
1. Force Vectors constantly shift direction,
regardless of the Exchange Traded Fund price movement. The above
schematic illustrates bullish Force Vector movement. Sometimes Force Vectors turn
into a robust configuration.
There are about four such robust cycles per
2. If you see a Force Vector cycle increasing
in length that stands out more so than other Force Vector cycles on the
charts, it is
increasingly becoming robust.
3. Start recording the daily closing prices
of the ETF and corresponding options of your choice. Figure out how much
certain options swing in price, relative to the price swings of the
Exchange Traded Fund. Some of you feel comfortable with "in-the-money"
options, while others are comfortable with "out-of-the-money" options.
4./5. Once the Force Vector is into a mature
cycle, place your first day order for the option(s) you have been stalking.
Offer a buy price less than the asking price. Hope for an intraday price
swing that will result in the successful purchase of your option price offer.
Offer day-orders only. Do this each evening until you successfully
purchase the option. Do not despair if your buy orders are not accepted.
Keep a journal on your efforts and learn how much off you were on your
offers. This is stalking. Learning and calculating will have more success
than chasing the snaky methods. This is a personal endeavor and you need
to develop your own choices. Do not ask the Indicant to recommend certain
options. It will fall on deaf ears.
6. The ETF does not go up in a straight line
during robust Force Vector cycles. There is usually a dip in the price of
the ETF, which prompts your buy order for the call option to be executed.
After dipping, the ETF will resume its bullish incline. This is when you
make the money.
7. Sell within three days of your buy order.
Sell earlier if you make a nice profit. Option values erode over time.
Holding for greater gains can wipe out your profit. Recognize profit
opportunities are down the road. Sometimes you will make a lot of money.
At other times, not so much will be made. And there will be a few times
you will lose money. If you practice the three day rule, your losses will
be minimized. During this three day period you can offer a price far
exceeding the current market price. However, on the third day, if not
already sold, sell the option at the market price.
8. If your buy orders were not executed
during the final days of the maturing robust Force Vector, discontinue
making your daily offers once you see the Force Vector shift direction.
Wait for the next robust Force Vector. Reacting to current market behavior
is the behavior of losers.
Finally, the above example is for Call Option
stalking. Put options are stalked when a robust Force Vector is moving
downward on the charts.
Click here to
continue options stalking tour.