{"id":5491,"date":"2019-06-19T11:55:44","date_gmt":"2019-06-19T15:55:44","guid":{"rendered":"https:\/\/www.morpheustrading.com\/blog\/?p=5491"},"modified":"2022-04-06T15:09:51","modified_gmt":"2022-04-06T19:09:51","slug":"etf-options-trades-now","status":"publish","type":"post","link":"https:\/\/morpheustrading.com\/blog\/etf-options-trades-now\/","title":{"rendered":"Jack&#8217;s Simple ETF &#038; Option Trading System For Winning In This Market"},"content":{"rendered":"<p align=\"CENTER\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.morpheustrading.com\/blog\/wp-content\/uploads\/2019\/06\/Whipsaw.jpg\" alt=\"Image from Cointelegraph\" width=\"725\" height=\"483\" title=\"\"><\/p>\n<h1 align=\"CENTER\">Jack Loftis has been snagging an 80-90% win rate on his ETF and option swing trades in this volatile market. Continue reading to find out how.<\/h1>\n<blockquote>\n<div>\n<p><em><span id=\"email_2\"><strong>Note from Deron:<\/strong> Following is a new guest blog\u00a0<\/span><a id=\"auto_assign_link_num_5\" href=\"https:\/\/www.morpheustrading.com\/blog\/etf-options-trades-now\/\" target=\"_blank\" rel=\"noopener\" name=\"post\">post<\/a>\u00a0from Jack Loftis I thought you might enjoy. Jack is the founder of <a id=\"auto_assign_link_num_1\" href=\"https:\/\/www.morpheustrading.com\/blog\/etf-options-trades-now\/\" target=\"_blank\" rel=\"noopener\" name=\"https etfswingtrader net etf swing trading \">ETFSwingTrader.net<\/a> and my long-time trading friend. Enjoy!<\/em><\/p>\n<p><span id=\"email_3\">I\u2019ve been using the same swing trading methodology at my website for the past 10 years.<\/span><\/p>\n<p><span id=\"email_4\">Trading with my own funds, most years have averaged around a 2% monthly increase to my large retirement fund.<\/span><\/p>\n<p><span id=\"email_5\">But between a dysfunctional D.C., Trade Wars, Brexit, etc., the first part of this year has challenged my discipline more than any time in recent memory.<\/span><\/p>\n<p><span id=\"email_6\">Yet this market CAN be successfully traded.<\/span><\/p>\n<p><span id=\"email_7\">Continue reading to see two actual examples of winning ETF trades I recently sold with my rule-based trading system.<\/span><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">TABLE OF CONTENTS<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/morpheustrading.com\/blog\/etf-options-trades-now\/#QQQ_%E2%80%93_Profiting_from_%E2%80%9Cmean_reversion%E2%80%9D_method\" >$QQQ &#8211; Profiting from &#8220;mean reversion&#8221; method<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/morpheustrading.com\/blog\/etf-options-trades-now\/#QQQ_%E2%80%93_Mean_reversion_strategy_for_a_quick_gain_on_a_3-day_hold\" >$QQQ\u00a0&#8211; Mean reversion strategy for a quick gain on a 3-day hold<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/morpheustrading.com\/blog\/etf-options-trades-now\/#Small_gains_with_a_high_win_rate_add_up_quickly\" >Small gains with a high win rate add up quickly<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/morpheustrading.com\/blog\/etf-options-trades-now\/#%E2%80%9CWhy_did_you_buy_too_early%E2%80%9D\" >&#8220;Why did you buy too early?&#8221;<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"QQQ_%E2%80%93_Profiting_from_%E2%80%9Cmean_reversion%E2%80%9D_method\"><\/span><span id=\"email_8\">$QQQ &#8211; Profiting from &#8220;mean reversion&#8221; method<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span id=\"email_9\">Below is a swing trade we recently closed profitably, which demonstrates how a progressive, \u201cmean reversion\u201d methodology can yield 8-9 winners out of every 10 swing trades.\u00a0<\/span><\/p>\n<p><span id=\"email_10\">The daily chart of $QQQ below shows where we bought and sold $QQQ in my <a id=\"auto_assign_link_num_2\" href=\"https:\/\/etfswingtrader.net\/etf-swing-trading-newsletter\" target=\"_blank\" rel=\"noopener\" name=\"https etfswingtrader net etf swing trading 2\">ETF swing trading service<\/a>:<\/span><\/p>\n<p><span id=\"email_11\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.morpheustrading.com\/blog\/wp-content\/uploads\/2019\/06\/QQQ.png\" alt=\"QQQ chart\" width=\"900\" height=\"673\" title=\"\"><\/span><\/p>\n<p><span id=\"email_12\">On May 8, I opened an initial position in $QQQ\u00a0based on the top panel in my chart, which showed the 2-period RSI indicator oversold for several days.<\/span><\/p>\n<p><span id=\"email_13\">Since the oversold RSI indicator coincided with $QQQ still being above its 200-day moving average, the dominant uptrend was still in place.<\/span><\/p>\n<p><span id=\"email_14\">On May 9, this Nasdaq index ETF closed lower, so we methodically added to the position.<\/span><\/p>\n<p><span id=\"email_15\">I typically use a 2-3-5% progression, enabling me to commit 5% of my total (large) portfolio to this trade by the end of the day.<\/span><\/p>\n<p><span id=\"email_16\">Keep in mind that a \u201cswing trade\u201d is a quick trade that we hold for an average of just five days.<\/span><\/p>\n<p><span id=\"email_17\">I only trade ETFs and leveraged ETFs, so this is much less volatile trading than when working with individual stocks.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"QQQ_%E2%80%93_Mean_reversion_strategy_for_a_quick_gain_on_a_3-day_hold\"><\/span><span id=\"email_18\">$QQQ\u00a0&#8211; Mean reversion strategy for a quick gain on a 3-day hold<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span id=\"email_19\">After a slight bounce the next day, to make me think I was a timing genius, the bottom fell out of the market the next day.<\/span><\/p>\n<p><span id=\"email_20\">Since $QQQ had fallen to what appeared to be a support level at $178, we made our final addition of 5% to the trade, for a total of 10% committed.<\/span><\/p>\n<p><span id=\"email_21\">By the way, it has taken me years of seeing this process work to be willing to make this large of a trade based on these setups.<\/span><\/p>\n<p><span id=\"email_22\">We were rewarded the next day with a bounce.<\/span><\/p>\n<p><span id=\"email_23\">And then another spike the following day.<\/span><\/p>\n<p><span id=\"email_24\">On the third day of the trade, the RSI-2 indicator (in my top panel) reached overbought levels, signaling it was time to exit.<\/span><\/p>\n<p><span id=\"email_25\">The daily chart of $QQQ above\u00a0shows the trade entry and exit points.<\/span><\/p>\n<\/div>\n<\/blockquote>\n<blockquote>\n<h2><span class=\"ez-toc-section\" id=\"Small_gains_with_a_high_win_rate_add_up_quickly\"><\/span><span id=\"email_27\">Small gains with a high win rate add up quickly<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span id=\"email_28\">Between the two ETF swing trades, we locked in a solid profit of several percent in around 7 trading days.<\/span><\/p>\n<p><span id=\"email_29\">Although this may seem like a small percentage win, we actually executed the trade using $TQQQ, the 3x leveraged version of $QQQ.<\/span><\/p>\n<p><span id=\"email_30\">As such, I made a 3-4% profit on a huge dollar trade in just a few days. Put another way, I added around 0.4% to my entire net worth over several days.<\/span><\/p>\n<p><span id=\"email_31\">Now, imagine doing this kind of trade 10 times a month &#8212; with never more than 2-3 active trades at a time.<\/span><\/p>\n<p><span id=\"email_32\">Imagine how focused you could be on those trades.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"%E2%80%9CWhy_did_you_buy_too_early%E2%80%9D\"><\/span><span id=\"email_33\">&#8220;Why did you buy too early?&#8221;<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span id=\"email_34\">Right about now is when I usually get the question of whether I entered this trade TOO SOON.<\/span><\/p>\n<p><span id=\"email_35\">If only I had magically known the exact day of the reversal, I indeed could have done even better. Wish I had pre-vision!<\/span><\/p>\n<p><span id=\"email_36\">The reason I methodically build my long trades as an ETF falls is shown by a second trade I initiated in the middle of the $TQQQ\u00a0trade.<\/span><\/p><\/blockquote>\n<p><span id=\"email_26\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.morpheustrading.com\/blog\/wp-content\/uploads\/2019\/06\/unknown.jpg\" alt=\"XLF chart\" width=\"899\" height=\"671\" title=\"\"><\/span><\/p>\n<blockquote>\n<div>\n<p><span id=\"email_37\">I opened a 2% initial position in $FAS\u00a0(the 3x leveraged version of $XLF\u00a0Financials) on May 14, which was close to the day we made the final addition to the $TQQQ\u00a0trade.<\/span><\/p>\n<p><span id=\"email_38\">$FAS immediately\u00a0reversed for over a +3.4% two-day profit.<\/span><\/p>\n<p><span id=\"email_39\">Put another way, I am greedy because I\u2019ll take the quick small profits, as well as the larger longer-term big profits.<\/span><\/p>\n<p><span id=\"email_40\">As long as my portfolio continues to methodically increase, I\u2019m happy.<\/span><\/p>\n<p><span id=\"email_41\">By the way, there is no trading during the day with my ETF and option swing trading <a id=\"auto_assign_link_num_3\" href=\"https:\/\/etfswingtrader.net\/etf-swing-trading-newsletter\" target=\"_blank\" rel=\"noopener\" name=\"https etfswingtrader net etf swing trading 3\">service<\/a> \u2013 all trades are made when the market closes, using Market on Close orders.<\/span><\/p>\n<p><span id=\"email_42\">Subscribers who received my Final Trade email (one hour before the market closed) made over +4% on these two trades.<\/span><\/p>\n<p><span id=\"email_43\">Next time we talk, I\u2019ll point out how this works in a downtrending market or sector (using inverse ETFs).<\/span><\/p>\n<p><span id=\"email_44\">I will also show you how the OPTION results based on these ETF setups can average +20% profit \u2013 taking into account all trades, both winners and losers.<\/span><\/p>\n<p><span id=\"email_45\">Finally, this is a rule-driven, disciplined trading methodology &#8212; not just discretionary trading.<\/span><\/p>\n<p><span id=\"email_46\">That means these types of results are reproducible \u2013 again and again and again.<\/span><\/p>\n<p><span id=\"email_47\">Check my <a id=\"auto_assign_link_num_4\" href=\"https:\/\/etfswingtrader.net\/\" target=\"_blank\" rel=\"noopener\" name=\"https etfswingtrader net \">website<\/a> for an example of an entire year\u2019s worth of ETF trades and how they added to my net worth.<\/span><\/p>\n<p><span id=\"email_48\">Options trader? Send me an email at <a href=\"mailto:ETFSwingTrader@aol.com\">ETFSwingTrader@aol.com<\/a> and I\u2019ll send you a 3-page discussion of the actual initial options trades I took that matched these ETF trades for the smaller accounts.\u00a0 Also, I&#8217;m happy to answer any questions you have. Just shoot me an e-mail.<\/span><\/p>\n<p><span id=\"email_49\">Good trading to you!<\/span><\/p>\n<p><span id=\"email_50\">Jack<\/span><\/p>\n<\/div>\n<\/blockquote>\n","protected":false},"excerpt":{"rendered":"<p>Jack Loftis has been snagging an 80-90% win rate on his ETF and option swing trades in this volatile market. Continue reading to find out how. Note from Deron: Following is a new guest blog\u00a0post\u00a0from Jack Loftis I thought you might enjoy. Jack is the founder of ETFSwingTrader.net and my long-time trading friend. Enjoy! I\u2019ve [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":5492,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_links_to":"","_links_to_target":""},"categories":[3],"tags":[],"class_list":["post-5491","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-stock-trading-strategy"],"_links":{"self":[{"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/posts\/5491","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/comments?post=5491"}],"version-history":[{"count":1,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/posts\/5491\/revisions"}],"predecessor-version":[{"id":11882,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/posts\/5491\/revisions\/11882"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/media\/5492"}],"wp:attachment":[{"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/media?parent=5491"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/categories?post=5491"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/tags?post=5491"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}