In the past few months, I’ve show you how I determine which stocks to trade options on, and how to select which options have the best chance at giving you a 100% return.
As I told you, finding a stock that’s going to make a move is key. Stocks that trade in a sideways are fine for non-directional trades, but I’m a directional trader. I like to predict which way a stock will move, and by how much, and target my options accordingly.
As important as it is to find a stock that moves, it’s even more important to make sure that your option is going to move when the stock does.
So how can you find out ahead of time if your options are going to make a move in price? There’s only one number you need to know.
Let me show you what I mean…