{"id":5005,"date":"2017-05-09T07:07:09","date_gmt":"2017-05-09T11:07:09","guid":{"rendered":"http:\/\/www.morpheustrading.com\/blog\/?p=5005"},"modified":"2022-04-06T15:09:51","modified_gmt":"2022-04-06T19:09:51","slug":"etf-options-trading","status":"publish","type":"post","link":"https:\/\/morpheustrading.com\/blog\/etf-options-trading\/","title":{"rendered":"Jack&#8217;s Back: Here&#8217;s A Simple Way To Successfully Trade ETF Options"},"content":{"rendered":"<p><em><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-5009\" src=\"https:\/\/www.morpheustrading.com\/blog\/wp-content\/uploads\/2017\/05\/options-complex.jpg\" alt=\"etf options trading\" width=\"500\" height=\"315\" title=\"\" srcset=\"https:\/\/morpheustrading.com\/blog\/wp-content\/uploads\/2017\/05\/options-complex-110x69.jpg 110w, https:\/\/morpheustrading.com\/blog\/wp-content\/uploads\/2017\/05\/options-complex-300x189.jpg 300w\" sizes=\"auto, (max-width: 500px) 100vw, 500px\" \/><br \/>\nNote: The following is a guest post from Jack Loftis of <a href=\"https:\/\/etfswingtrader.net\" target=\"_blank\" rel=\"noopener\">ETFSwingTrader<\/a>. Enjoy!<\/em><\/p>\n<p>Last month, I explained\u00a0why there is no need to master the &#8220;psychology of trading&#8221; IF\u00a0you have a trading system that generates consistent profits with minimal drawdowns.<\/p>\n<p>After\u00a0publishing\u00a0<a href=\"https:\/\/www.morpheustrading.com\/blog\/no-need-trading-psychology\/\" target=\"_blank\" rel=\"noopener\">that article<\/a>,\u00a0many\u00a0traders told me they wanted to try my ETF trading system with a 90% win rate, but\u00a0they felt\u00a0their trading accounts were too small to successfully follow\u00a0the method.<\/p>\n<p>Fortunately, there is a simple solution because my ETF trading strategy is designed to easily work for trading ETF options as well.<\/p>\n<p>Continue reading to learn\u00a0why profiting from options trading can be much easier than you think!<\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">TABLE OF CONTENTS<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/morpheustrading.com\/blog\/etf-options-trading\/#Is_Options_Trading_Complex_Only_If_You_Want_It_To_Be\" >Is Options Trading Complex? Only If You Want It To Be!<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/morpheustrading.com\/blog\/etf-options-trading\/#Not_An_Options_Guru\" >Not An Options Guru<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/morpheustrading.com\/blog\/etf-options-trading\/#When_Size_Matters\" >When Size Matters<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/morpheustrading.com\/blog\/etf-options-trading\/#Applying_ETF_Trades_To_Options\" >Applying ETF Trades To Options<\/a><\/li><\/ul><\/nav><\/div>\n<h3><span class=\"ez-toc-section\" id=\"Is_Options_Trading_Complex_Only_If_You_Want_It_To_Be\"><\/span><strong>Is Options Trading Complex? Only If You Want It To Be!<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Imagine\u00a0if I told you that, in order to successfully trade options, you do NOT\u00a0need to know about things such as:<\/p>\n<ul>\n<li>&#8220;The Greeks&#8221;<\/li>\n<li>How to construct a spread<\/li>\n<li>How to construct an iron candor<\/li>\n<li>Determining\u00a0the implied volatility through dividing\u00a0by the square root of some calendar spread&#8217;s first derivative (this one makes my head hurt)<\/li>\n<\/ul>\n<p>Indeed, options trading can be quite complex&#8230;but only if you want it to\u00a0be!<\/p>\n<p>For example, if you simply knew\u00a0whether a stock or ETF will be higher or lower\u00a0five days from now (nothing more), could you find a\u00a0way to simply buy a call or a put and make money on it?<\/p>\n<p>Of course you could!<\/p>\n<p>Just like my friend\u00a0<a href=\"https:\/\/www.morpheustrading.com\/about-us\" target=\"_blank\" rel=\"noopener\">Deron<\/a>, the founder of Morpheus Trading, I believe a winning trading strategy should be easy to learn and apply in the real world.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Not_An_Options_Guru\"><\/span><strong><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-5010\" src=\"https:\/\/www.morpheustrading.com\/blog\/wp-content\/uploads\/2017\/05\/options-guru.png\" alt=\"options-guru\" width=\"560\" height=\"315\" title=\"\" srcset=\"https:\/\/morpheustrading.com\/blog\/wp-content\/uploads\/2017\/05\/options-guru-110x62.png 110w, https:\/\/morpheustrading.com\/blog\/wp-content\/uploads\/2017\/05\/options-guru-300x169.png 300w\" sizes=\"auto, (max-width: 560px) 100vw, 560px\" \/>Not An Options Guru<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>I have never been one of those guys who claims you can\u00a0get rich from trading options (but there are many out there).<\/p>\n<p>People take course after course, then\u00a0lose dollar after dollar on the &#8220;incredible money making opportunities provided by options.&#8221;<\/p>\n<p>I hear such\u00a0war stories all the time when chatting with subscribers of <a href=\"https:\/\/www.etfswingtrader.net\/etf-swing-trading-newsletter\" target=\"_blank\" rel=\"noopener\">my service<\/a>.<\/p>\n<p>Yet, I still don&#8217;t want to be that guy.<\/p>\n<p>I don&#8217;t want to teach anyone how to trade options;\u00a0I am not an options guru.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"When_Size_Matters\"><\/span><strong>When Size Matters<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>As you may recall from my previous post, I\u00a0have a finely-tuned trading\u00a0<a href=\"https:\/\/www.etfswingtrader.net\/etf-swing-trading-strategy\" target=\"_blank\" rel=\"noopener\">strategy<\/a> that consistently wins 8-9 of every 10 ETF swing trades.<\/p>\n<p>I prefer trading ETFs because they are comprised of groups of individual stocks.<\/p>\n<p>As such, ETFs act like statistical entities and their movements have predictable characteristics.<\/p>\n<p>Because of this, I have been supporting myself by making large bets on small movements of ETFs &#8212; bets that are successful nearly 90% of the time.<\/p>\n<p>With a $1 million account, you too could trade this way and make a living.<\/p>\n<p>But what if you have a much smaller account, say in the range of $5,000 to $30,000?<\/p>\n<p>Since my ETF trading strategy is based on <em>small<\/em> price movements, it would probably <em>not<\/em> be\u00a0realistic to expect to earn a living from trading ETFs with an account of that size.<\/p>\n<p>Rather, the only way to significantly grow a small\u00a0account with\u00a0my ETF trading methodology is through some kind of options strategy.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Applying_ETF_Trades_To_Options\"><\/span><strong>Applying ETF Trades To Options<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>For the past nine\u00a0years, I have been publicly posting\u00a0around 10 ETF trades per month, with an average win rate around 90%.<\/p>\n<p>About half of these trades have been\u00a0appropriate for an options trade version.<\/p>\n<p>Since the first week of 2017, I&#8217;ve scored\u00a0a <strong>20% average gain on all\u00a0my option trades, with<\/strong> <strong>17 winning options trades in a row (no losing options trades yet this year).<\/strong><\/p>\n<p>And here&#8217;s the best part&#8230;<\/p>\n<p><a href=\"https:\/\/www.etfswingtrader.net\/etf-swing-trading-newsletter\" target=\"_blank\" rel=\"noopener\"><img loading=\"lazy\" decoding=\"async\" class=\"alignright wp-image-5015 size-medium\" src=\"https:\/\/www.morpheustrading.com\/blog\/wp-content\/uploads\/2017\/05\/simple-300x200.gif\" alt=\"simple trading strategy\" width=\"300\" height=\"200\" title=\"\" srcset=\"https:\/\/morpheustrading.com\/blog\/wp-content\/uploads\/2017\/05\/simple-300x200.gif 300w, https:\/\/morpheustrading.com\/blog\/wp-content\/uploads\/2017\/05\/simple-110x73.gif 110w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/a><\/p>\n<p>All I do is buy calls or puts,\u00a0based on the normal ETF setups I am trading in my large account.<\/p>\n<p>Like I said, no\u00a0complex knowledge of options is needed.<\/p>\n<p>And since you would be a fool to think I can predict perfectly when an ETF is going to reverse direction, I build these option trades progressively.<\/p>\n<p>This greatly improves the win rate.<\/p>\n<p>Again, I am no options guru and I don&#8217;t want to teach anyone how to trade options.<\/p>\n<p>But if you\u00a0are at least used to the volatility of options trades, and know that 9 out of 10 times the underlying ETF will move in the direction of the option over the next few days, do you think you could make money?<\/p>\n<p>When you <strong><a href=\"https:\/\/www.etfswingtrader.net\/etf-swing-trading-newsletter\" target=\"_blank\" rel=\"noopener\">sign up<\/a><\/strong> for my service, you will receive an explanation about every ETF trade setup I share with you.<\/p>\n<p>I also provide you with both a relatively aggressive <em>and<\/em> relatively conservative equivalent options trade version (when appropriate).<\/p>\n<p>If you want to\u00a0see my results for yourself, <a href=\"https:\/\/etfswingtrader.net\/blog\/the-smallest-hedge-fund-in-the-world-2\/\" target=\"_blank\" rel=\"noopener\">here<\/a> is a list of my actual options trades in a $30,000 account, as well as trades I have executed this year in much smaller accounts.<\/p>\n<p>These are trades that made the money to keep taking my wife out to dinner (so she lets me keep on trading).<\/p>\n<p>For just 30 bucks, you can <strong><a href=\"https:\/\/www.etfswingtrader.net\/etf-swing-trading-newsletter\" target=\"_blank\" rel=\"noopener\">test drive<\/a><\/strong> my service\u00a0for a month and see if its right for you too.<\/p>\n<p>As always, please\u00a0feel free to personally\u00a0<a href=\"https:\/\/www.etfswingtrader.net\/contact-us\" target=\"_blank\" rel=\"noopener\">contact me<\/a> by email or phone with any questions or comments.<\/p>\n<p>Cheers,<\/p>\n<p>Jack Loftis, PhD | founder<br \/>\n<a href=\"https:\/\/etfswingtrader.net\" target=\"_blank\" rel=\"noopener\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone\" src=\"https:\/\/www.morpheustrading.com\/blog\/wp-content\/uploads\/2017\/04\/header-logo-110x54.png\" alt=\"ETF Swing Trader - Jack Loftis\" width=\"70\" height=\"34\" title=\"\"><\/a><\/p>\n<p>PS &#8211; Join nearly 13,000 followers of my\u00a0<a href=\"https:\/\/stocktwits.com\/ETFswingtrader\" target=\"_blank\" rel=\"noopener\">StockTwits feed<\/a>\u00a0to see the thousands of trade ideas I have publicly shared over the years.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Note: The following is a guest post from Jack Loftis of ETFSwingTrader. Enjoy! Last month, I explained\u00a0why there is no need to master the &#8220;psychology of trading&#8221; IF\u00a0you have a trading system that generates consistent profits with minimal drawdowns. After\u00a0publishing\u00a0that article,\u00a0many\u00a0traders told me they wanted to try my ETF trading system with a 90% win [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":5009,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_links_to":"","_links_to_target":""},"categories":[3],"tags":[],"class_list":["post-5005","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-stock-trading-strategy"],"_links":{"self":[{"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/posts\/5005","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/comments?post=5005"}],"version-history":[{"count":1,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/posts\/5005\/revisions"}],"predecessor-version":[{"id":11886,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/posts\/5005\/revisions\/11886"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/media\/5009"}],"wp:attachment":[{"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/media?parent=5005"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/categories?post=5005"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/tags?post=5005"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}