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Indicant ETF Option Stalking Tour Page 2

Robust Force Vector Trading Tactic for ETF Options

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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 year.

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.

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