Posted in
Education
By: Tom Gentile
on September 30th, 2024
System Mastery On-Demand
I am an Options Trader through and through. Though I also invest, a big part of providing a livelihood for me and my family is through options trading. I’ve been able to use it in my life and I’d love the opportunity to help you make it a part of yours.
I will tell you more about the On Demand series of trading lesson plans available for your consideration a bit later in this educational article.
First I will educate you on the fact I use multiple trading styles (both in research of trade ideas and how to execute them) and they are as follows:
5 Styles of Options Trading
- Momentum: Trends in motion tend to stay in motion
- Statistical: Data that speaks to a strong likelihood of a security performing a certain way
- Seasonal: Data that shows specific periods of time or range of days where a security HAS made a move higher or lower a high percentage rate
- Volatility: Based on certain events for a company its stock may see a spike or a drop in price and how to position your trade to benefit whichever way the security performs
- Contrarian: When the direction of a security looks like there is only one way it can go, there could be a way to trade against the crowd before the crowd becomes aware they should adapt
These are not listed in order of preference, or which one is performing better than the other. There are different times of the year one approach may work better than the other.
I have a Rules Based Trading approach for each of these. In some cases, more than one approach.
It is these approaches that I teach in my System Mastery Course.
I have a special opportunity for everyone reading this to take advantage of my On Demand video series of lesson plans of my System Mastery Course. The offer is here and at the end of this educational piece, but basically it is a way for people to get my education now rather than wait until next year when or if I teach another one.
Special Offer
Join Mastery On-Demand!
Choose from a wealth of Mastery Programs including our System Mastery, Hedge Fund Mastery, and Trend Mastery — or choose to get access to all of them with the All Access pass.
Back to Education
If I had to reveal what one I use most often I would have to say Seasonal.
What is Seasonal Analysis?
To me seasonal analysis is taking a security and researching its price patterns to see if I can spot where the security behaves in a consistent, repeatable, predictable manner.
I want to find securities that produce a repeatable price patterns that occur consistently over a period of time. What security or securities start off trading at one price point at a certain time/date and consistently trades to a higher or lower price point at a certain, later specific time/date.
When I say Seasonal, I am not talking about Back-to-School season or Tax Season. I am not necessarily talking about a Holiday Season, though there are holiday patterns that I will educate you on over the year.
Seasonal doesn’t have to be that specific to a time of year, like in the Fall or Summer, though there are patterns I qualify as seasonal that do happen over those type periods of time of the year, like the bullish Energy and Oil pattern that happens from mid-February to mid-July that I teach and trade.
What Stocks and or ETF’s Have Repeatable Patterns?
The question I had for many years is are there specific stocks or ETF’s that have repeatable price patterns? Is there a security that each year trade in a certain manner regardless of the time of year?
Does it trade higher or lower over specific date ranges or numbered trading days? Let’s look over the past 10 years and see what the data for those securities are to see what type of percentage success rate they have. I wanted to also find out the average price move for that repeatable pattern for that security.
What I have found in my years of research is there are securities that trade in a consistent price pattern, higher or lower, at various times of the year and multiple times over the year.
I had the scan built to find out this data and more and that scanning tool is what I call the Money Calendar.
My Money Calendar scanning tool in my software www.tomsoptiontools.com finds securities that have a historical 90 or 100% success rate all throughout the year.
By 90 or 100% success rate what I mean by that is the security has proven to trade higher or lower in price form a start date open price to and end data closing price and it has done that 9 or 10 of the past 10 years.
I teach what I call my System Mastery Course almost every year. This is where I take those of my subscriber / students that pay to enroll to it through a 6-week, once per week, minimum 90-minute LIVE lesson plan educating them on these strategies or what I call systems – specific process of how to execute my options trading process.
For those that haven’t learned my 3-step process for options trading, it is as follows:
- Spot the Opportunity
- Find and build an Acceptable Risk option
- Manage that trade
Using the Money Calendar scanning tool is what I use and teach in a dedicated lesson plan in my System Mastery Course.
There are times where I may be using a different scan or strategy where the Money Calendar is also use in conjunction with that strategy or process.
The best way I can tell anyone as to how to get the tool and learn to use it effectively is to get into my System Mastery Course and learn.
As I continue to hold live weekly sessions for some of my subscriber / students with or include a case study in my weekly newsletter also found in my software www.tomsoptiontools.com, or in my consistently updated educational and market update YouTube videos you will be able to continue to learn and hone your options trading craft.
To your success,
— Tom Gentile
App: Toms Option Tools
Toms Option Tools scan the markets for bullish and bearish trade opportunities using our proprietary scans and strategy algorithms. TTR Darknet finds bullish entries based on triple stack channel collisions. Money Calendar identifies seasonal patterns with at least 90% accuracy looking back 10 years. Weekly Cash Clock finds short term opportunities that last a week on average. Microcurrency Trader applies Darknet technology and moving averages to cryptocurrencies. Velocity Trader utilizes volume spike and Velocity indicators on custom stock lists. Quantum Scripts scans the markets for momentum acceleration signals and employs Quantum noise filters. Optimal Trader finds directional pre-earnings opportunities that are optimized for entry date, stock movement, and volatility surge. My Trades tracks the profit/loss of your trades, displays stock charts and risk graphs, creates new trades, and edits existing trades. Morning Report provides top 10 option rankings in 6 categories each day.
Disclaimers
Stock and options trading has large potential rewards, but also large potential risk.
You must be aware of the risks and be willing to accept them in order to invest in the stock and options market. Do not trade with money you cannot afford to lose.
This is neither an offer to buy/sell/ or recommend a particular stock or option.
Hypothetical or simulated performance results have certain inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not been actually executed, the results may have under or overcompensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with hindsight.
No representation is being made that any account will or is likely to achieve profits or losses similar to those shown.
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