Options 103: Writing Your Paycheck

As I concluded Options 102, I said the charts begin to talk to you after some practice.  In this lesson I’ll give some examples.  Remember, to this point we probably have less than 15 minutes in the process of creating our 30 minute work week.

 

After running the search looking for the top 10 only 5 were returned.

On the Yahoo earnings calendar site,  I’ll go through the remaining 5 to make sure none have a report coming out this week.

As you can see DIS (Walt Disney) does on the 7th so I’ll eliminate it. None of the rest do.  So now I’m down to 4 candidates. Now for the charts and I still have about 10 minutes left.

In all the charts below, the green line, the red line and the red area in the bottom chart are all at their 3 month highs.   However the green line in the bottom section of the chart is showing a downward divergence.  These candidates are all indicating a possible pullback this week.

Since our 4 best picks are all looking to pull back next week we will be using a strategy called a Bear Call Spread.  I will cover the Bear Call Spread and the Bull put spread in Options 104: Making Weekly Income.  These are the only 2 strategies I use for weekly income.  This keeps the learning curve simple so that anyone can utilize it to their advantage in a short period of time.

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Published by Dennis Detweiler

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