Option Trading Strategies | Finding Reversals

One of the most asked questions I get from traders is what kind of setups do you look for? So in this week's video, I thought I would go over one of our option trading strategies that we took with our members this week.

This particular swing trade setup uses a multiple time frame approach to swing trading by first looking at the weekly chart for a potential reversal and then uses the daily chart to fine tune the entry. This type of option trading strategy is great for swing traders who are looking for big moves in stocks that would last a few days to a few weeks.

The setup discussed in this week's video is a long trade we took in BMY where we took half profits yesterday of 38%. Our second half profits are currently at a 100% gain and we are looking to hold this into next week and trail our stop to lock in even more profits.

To learn more about this strategy to better your swing trading, start our 14 day free trial now.