A: Market volatility tends to throw most investors for a loop, causing them to either lose money or sit out of the market entirely. But for V3 traders, that’s not the case. Tom uses a variety of strategies that allow you to profit no matter which direction the market is headed. Here at V3 Trader, volatility equals opportunity.
You can expect to use the following six trading strategies:
- Long Call – “Green Trade”
Tom uses the term “Green Trade” to describe a simple, long call strategy. He will recommend this trade when he expects the price of the underlying stock to go up. To place a Green Trade, you will need level 2 options clearance.
Click here to see how the Green Trade works.
- Long Put – “Red Trade”
Tom refers to simple, long puts as “Red Trades.” He will recommend purchasing a put when he expects the price of the underlying stock to go down. To place a Red Trade, you will need level 2 options clearance.
For even more on the Red Trade, click here.
- Bull Call Spread – “Green Loophole Trade”
Tom calls bull call spreads “Green Loophole Trades.” When he expects the price of the underlying stock to go up, but finds that the option prices are too expensive for a simple, long call, he will recommend placing a bull call spread. To place a Green Loophole Trade, you will need level 3 options clearance.
Check out my detailed guide to placing a Green Loophole Trade here.
- Bear Put Spread – “Red Loophole Trade”
“Red Loophole Trades,” Tom’s term for bear put spreads, are similar to Green Loophole Trades – but Tom recommends them when he expects the price of the underlying stock to go down. He uses put spreads when the option prices on simple, long puts are too expensive. To place a Red Loophole Trade, you will need level 3 options clearance.
Click here to see how the Red Loophole Trade works.
- Bear Call Spread – “Credit Loophole Trade”
In times of high market volatility, Tom will recommend a “Credit Loophole Trade,” or a bear call spread, when he expects the underlying price of the stock to go down. By placing a loophole trade for a net credit, you are able to drastically cut your risk and increase your overall probability of profit. To place a Credit Loophole Trade, you will need level 4 options clearance.
If you want to learn even more about Credit Loophole Trades, click here.
- Bull Put Spread – “Credit Loophole Trade”
A bull put spread is another trading strategy that gives you a net credit. Tom will recommend it during times of high volatility to increase your probability of profit when he expects the price of the underlying stock to go up. To place a Credit Loophole Trade, you will need level 4 options clearance.
Click here for everything you need to know about Credit Loophole Trades.
Tom makes it easy to place these trades. He will give you step-by-step instructions with each recommendation, including a live trading video where he will walk you through the process of placing the order with your broker.