Options Extrinsic Value As a Stock Indicator

I bought DNDN shares a month ago at about $4. 00 and just one month later, I publicised it for $21. Might it be pure luck? How often has that happened to you? What if I mentioned that luck has nothing included with this and that I got myself DNDN shares knowing that it can break out strongly soon?

Yes, I do know for if you are an of probability that DNDN is able to stage a big rally soon and that i didn't even confirm the news or their earnings nor financial statements to carry out that. In fact, it took me only about 1 minute to identify this great trade.

Here's earn money do it:

I simply look for Stocks with unusual extrinsic value on their far away from money call options. I usually look for extrinsic values roughly over 20% of as many as the underlying Stock once more.

Why do Stocks with strange extrinsic value signal an increasing rally?

Market makers control the extrinsic a worth of options and these people are the "insiders" of the business. They know when something is brewing and then boost the extrinsic value of options on those Stocks so that nobody is able to reap a free lunch through purchasing those liking. Sad, but true. Quite a bit, these market makers are incredibly accurate and Stocks uninformed rally, most of your time and effort.

With this information, one could either do a covered call options investments strategy on these Stocks or maybe they can simply keep hold of the Stocks itself  to speculate the Stock going bigger. How about buying request options instead? Yes, that you're deep in the money call options without much extrinsic value. At the money call options and away money call options are undoable since the extrinsic value could been high enough to noticeably reduce any potential profits, if any remains.

Yes, this is no rocket science and easily set up associated with screener for such Stocks using some of the greatest online options trading treatment. Have fun, good luck and be sure to obtain professional advise before acting on from any of the above suggestions.

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