Stock Option Class

BDRC: Bullish, Day, Reversal, Confirmed

Bullish Stock Trade

  • Focus on stocks that are in a longer term up trend and have recently pulled back to a support level.
  • Stocks should be above their 100-day moving average.
  • Avoid stocks that are in a steep downtrend of have corrected more than 30% in the past three weeks.
    • These situations are very risky and should only be considered by seasoned traders.
BDRC class option chart

Day or Swing Trade

  • The sell off is temporarily overextended and the probability of a nice, quick bounce is high.
  • Use tight protective stops.
  • Closely monitor the positions.
  • Exit the trade if the move does not materialize in a day or two.
  • Seek small, quick, consistent profits.

Reversal Pattern

  • The trades are contrarian in nature and we are looking to buy a dip.
  • A reversal can only occur if there is something to reverse. Focus on stocks that have recently fallen between 5% -10% and are above longer term trend lines or moving averages.

Confirmed Option Trading Opportunity

  • The Set-up has formed over the prior day(s) and today the price has moved through a critical price point as determined by the OneOption rule base.
  • The critical price points identify short-term resistance levels. Once the stock passes through them the probability of a successful trade increases.
  • Be prepared to look at fewer trades. Many potential Set-ups never materialize.
  • Pass on trades that have confirmed on a large gap higher and never pull back. Often, the prior day’s price performance will attract attention and create a buy imbalance before you can get in.