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I see a lot of stuff every week.
From fresh research to private placements, to the hottest new opportunities you can imagine in a wide variety of sectors and subsectors, there's always a way to make money.
But nothing gets me more excited than the possibility of doubling your money quickly and efficiently.
Today, I want to show you a carefully guarded day-trading technique used by pros to regularly harvest gains from weekly options.
There's a lot to like…
First, this technique limits risk, which means you're never on the hook for more than you counted on. Unlike many options trading techniques commonly taught out there, this means you don't get in over your head (or your wallet).
Second, the technique uses weekly options, which means you're never going to run out of opportunity. They're a far cry from the monthlies I "grew up" with when I started, and they're considerably more flexible too.
And third, you can make a killing without being chained to your computer all day. The trade I'm going to describe to you can easily be managed using limit orders, trailing stops, and profit targets.
I thought you might be.
I call this trade the "Weekly WhizBang," and it's a great Total Wealth Tactic for those of you who enjoy quick action and potentially even quicker profits.
You can use it to trade both bullish AND bearish expectations. Which means it's flexible and easily adaptable to current market conditions.
What's more, the "Weekly WhizBang" is great for big, liquid stocks like Apple Inc. (Nasdaq: AAPL).
In fact, let's start there.
How the Weekly WhizBang Works
Apple stock is under huge pressure at the moment.
Legions of analysts are falling all over themselves to downgrade and reprice the stock. Robert Cihra of Guggenheim, for example, downgraded the stock from "buy" to "neutral" (which is Wall Street speak for "sell," even though they will never tell you that); UBS cut its 12-month forecast from $240 to $225, while lowering their iPhone quarterly sales estimates; Goldman Sachs cited that they are "concerned that the end demand for new iPhone models is deteriorating," and have lowered their 12-month forecast from $222 to $209. Other similar commentary will undoubtedly follow.
I think $150 a share isn't out of question before the latest downturn runs its course.
The problem, of course, is that the move won't be in a straight line. So simply shorting the stock or buying put options, like most people will do, is going to be a rocky ride filled with false rebounds, dead cat bounces, and a head fake or two the pros will set up to separate you from your money, just for good measure.
Instead, we're going to use a technique called the "horizontal spread."
About the Author
Keith Fitz-Gerald has been the Chief Investment Strategist for the Money Morning team since 2007. He's a seasoned market analyst with decades of experience, and a highly accurate track record. Keith regularly travels the world in search of investment opportunities others don't yet see or understand. In addition to heading The Money Map Report, Keith runs High Velocity Profits, which aims to get in, target gains, and get out clean, and he's also the founding editor of Straight Line Profits, a service devoted to revealing the "dark side" of Wall Street... In his weekly Total Wealth, Keith has broken down his 30-plus years of success into three parts: Trends, Risk Assessment, and Tactics – meaning the exact techniques for making money. Sign up is free at totalwealthresearch.com.