Entry is Key...Exit is Everything! ^TM

Do you want to make enough profit to buy one of these?

Then learn how to trade with my proven

 Lotto Plays and White Whale trade strategies!

Session 1 — What is Options Lotto?  

Have you always looked at past trades that turned out to be massive winners and you say to yourself you wish you would have just taken the trade because now you would be rich?

I have been there and done that my trading friends!

It's a painful thing to look at the past and play the should of, could of, what if game, but that is the problem with this line of thinking...it's looking back at the past...and that past does not equal your future!

Picking massive winners is a very difficult thing to do. In fact, most of us speculate only to lose valuable trading capital; and if we manage to hit a few winners, we tend to take the profits early because we are grateful just to get our money back—this is trading with fear and scared money never wins in trading!

Looking over my website, you know that I have a good track record for finding massive winners, but it's not as easy as it looks. In fact, it has taken me a very long time to gain the insight of the markets, avoid the land mines and find the Gold Mine trades that I have posted to this website BEFORE they happened. However, I do not dig for them any more because that's too much work, so instead I learned and now teach that you fish for your treasures; because the markets are more like an ocean of opportunity; and there are many big fish out there that can feed you for a very long time—and then there is the occasional White Whale Lotto Trade that can feed you for a lifetime.

Think about it, how would you like to come into your trading day and turn on the computer

only to find you have a nice six-figure profit waiting for you to just push the button and take?

Well, it happens, will happen again and should happen to you in the future once you learn my

proven Lotto Trade strategies!

The reason most, if not all, traders/investors never seem to catch these trades is because they are doing the wrong thing. You do not catch them by trying to fish in one spot; you simply lay the nets out and let the fish find you! Occasionally, the White Whales find you and that is when you can buy the Ferrari, Yacht, World Wide Vacation...maybe even a private Jet some day!!

Let's explore how to do this type of fishing.

Session 2 — How to make your Lotto and White Whale Nets

For many years I would hunt and search for option trades that could make me hundreds of percentage points in returns (%ROI); however, those trades are nothing compared to the massive winners I stumbled onto with fishing orders that opened my eyes to this type of trading strategy.

I call them White Whale or Lotto Trades because these types of trades literally make you THOUSANDS of percentage points in profits—and typically the very next day!!

Just look at the bottom of this page you will see some of my massive winners I have posted to this site over the years before they happened!

Imagine seeing profit gains of:

 waiting for you to claim the same or next day!

Here are some examples of trades posted to this website over the years and the profit potential:

Here is a profits grid of different contract loads:

Of course, in order to get these kinds of winners you have to get lucky.

Sure, luck is what you need to win any type of lottery, but this kind of luck is made-luck once you learn how to do it!

The best way to win the options lottery game is NOT trying to pick the correct plays; because you will eventually use up your trading capital; or worse, get greedy and buy way too many contracts on what you think is a sure deal only to see them expire worthless.

If you want to stay in the game and keep fishing, then find a good low priced stock and trade it with share size for quick profits every day; that way, you can consistently finance your trading nets to catch the Lotto and White Whale trades.

The best part about trading with profits is that you are not playing with scared money when most of these plays do not work out. That's right, most of them will expire worthless, so you better have a consistent profit strategy to fund them or a very large account to absorb the losses until the winners roll in—and Lotto Trades come along multiple times a month and Moby Dick shows up two to three times a year!

The best way I have found to make your nets is day trading slower moving stocks. Huh? I know, it seems a bit strange to think this way since my site is actually based on options trading, but let me assure you that if you attempt to day trade options (without the years of experience it takes to master them) then you are destined to blow up any and all accounts you fund—take it from my hard learned experience and DO NOT attempt to day trade options on a regular basis in the beginning stages of your trading career.

Ok, so now you may be thinking you will just trade the "fast movers" like: AAPL, CMG, AMZN, GOOGL, NFLX, TSLA, META, NVDA  etc. NO WAY!, the key to this strategy is to just go for the lower priced stocks that will make you consistent small gains (.05 - .10 cents) that you can do large share size with—your goal is to capture small consistent moves and make consistent measured gains over and over again.

One of my favorite stocks to do this with is GE. This stock has one of the largest market caps on the DOW and it's traded very heavily by fund managers; which means you could actually trade up to 100k shares and get filled rapidly. This stock also does not move up or down enough to crush your account like the high beta volatile stocks will, so you can be patient and trust it more if things do not necessarily go your way for the day.

If you watch GE for a week, you will start to see a consistent pattern of movement; which will allow you the opportunity to make the consistent gains you need to build your nets with. Once you get the timing right, you will start to make money hand over fist, and with that said, you can use those profits to start laying your option nets to catch Lotto trades and the occasional White Whale that can buy you this Lamborghini in a single trading day!

 

It has happened in the past, and it will happen again and again!

One of the reasons I like GE is because it's a low priced stock that allows you to control more shares with a small account size. So, if you have say, $30k to invest with, then you can use up to 4:1 margin during the trading day and control 1k-3k shares with each trade vs. gambling with a stock like AMZN or GOOGL and only be able to control 50 - 100 shares. Sure, you may be thinking these stocks move so much more to give you a quicker profit; however, they will give you an even bigger loss more times than a profit. Remember, a trade is a trade, and what determines your gains is the number of shares you buy...not the movement of the stock—take if from me, slow and steady wins this race.

In order to effectively do this type of strategy, you will need a minimum of $25,000 in your account at all times to be qualified as a "Pattern Day Trader."  Also, when you have a minimum of $25k in your account, you will qualify for margin giving you 4:1 buying power during the day and 2:1 if you hold over night. The only drawback here is that you must have a minimum of $25k in liquidity each day you start trading, so the best thing to do is open an account with $30k to assure you have enough wiggle room to work your trades and maintain the minimum daily liquidity requirements.

When you start trading, NEVER open a trade with full margin. Once you are filled, you can adjust your position and add more share size if you need to. I would never recommend using more than 3:1 to add shares in order to get your desired profit. If you need to hold over night, you definitely need to go back to 1:1—you always have tomorrow to work your trade, so why take unnecessary risks?

Because GE is a Dow Jones 30 listed stock, it's traded by a Specialist and they can easily manipulate price minute-by-minute. That is why I always trade GE off 15 or 30 minute charts so you do not get "sub-pennied" or suffer whipsaw from the Specialists, Algorithm Trading Computers and bigger trading whales out there.

To help you gain a slight edge over most retail traders, you can subscribe to the NY open book (a live quote feed that shows you the size of orders on both sides of the market) but I do not recommend this unless you are going to trade more than 10k shares.

NYSE OpenBook https://www.nyse.com/market-data/real-time/openbook-ultra

Remember:  If you are trading in too tight of a time frame, particularly a 1 or 5 minute chart, you are going to feel a lot of pain and frustration because a Specialist can manipulate the bid/ask spread causing you to get pushed around on your orders. Since we are only looking for $0.05-$0.10 cent profit targets, just spare yourself the frustration and use a 15 or 30 minute time frame to make your trades—the moves are obvious and very predictable.

Below is a typical 30-minute chart of GE: (+$0.17)

Here is strong moving day for GE (+$0.61)

Here is a weeks worth of trading on GE with a DJ30 comparison line:

As you can see, the movements are predictable and consistent so you can easily get your $0.05 - $0.10 cents a day trading GE.

The best way to trade this stock is wait for the topping or bottoming tails to show in the first 30 minutes of the trading day and then work your way in the direction of the market to capture your profit. GE will follow the overall direction of the Dow Jones 30 ($DJI) better than 90% of the time. So if the market is up, then GE will be up and vice versa—by working with a larger time-frame, you will be able to make consistent gains every day without a lot of stress or risk.

Ok, let's do some math and see just how profitable this can be for you to build your nets with.

Taking into consideration you have a $30,000 trading account, you can buy (based on 3:1 margin) up to 3,894 shares; however, in the beginning, I strongly recommend you start with 1000 shares until you are familiar with this stock and your abilities, then you can go with 3000-4000 shares per trade—remember, your target profit is between $0.05 - $0.10 cents per trade.

Once you get good at trading this stock, you can typically catch 2 - 3 trades a day if the stock is making moves and some days, GE will trade pretty much flat all day; while other days, it will move well over $0.35-$0.75 cents, so do not get greedy and force trades because there will be plenty of opportunities throughout the week to make your Lotto Trade money—trading this way is not a sprint...it's a marathon!

Below are two examples of the possibilities making two trades a day:

Depending on your monthly financial needs, and your account size, you can can see how this can add up very quickly; and because this stock is easily scalable; you can keep adding shares as your profits rise—and so will your income!

The main goal here is to make more than enough money to cover your monthly income needs and have plenty of profits left over to start casting your Lotto Trade nets without depleting your trading capital; stressing over the cost of the plays that do not pay off.

REMEMBER: SCARED MONEY NEVER WINS!

Here is a spreadsheet for you to test scenarios with and see what the possibilities can be: GE Trde Calc.xls

Session 3 — How to cast your Lotto Trade nets.

I trade both CALLS and PUTS, but I have had some of my most profitable Lotto Trades with PUTS because a stock will fall much further and faster than it will go up. What we are looking for is a stock that misses earnings estimates or received very bad news, and in turn, gets whacked in price the next day. In order to make the bigger profits, you need to choose stocks like: GOOGL, CMG, AAPL, NFLX, AMZN, TSLA, META etc. with high volatility and the potential to make big moves greater than 10% when there is very publicized "anticipated" news events that miss expectations—these make the most profitable opportunities!

Take for example, DNDN wash crushed when it's prostrate cancer drug fail to get FDA approval:

ISRG was whacked TWICE!

When these types of stocks do not get the expected outcome, they will fall hard and fast giving our cheap PUT options very large swings in price making us MEGA LOTTO MONEY!

The key is having the capital to consistently lay your nets so these White Whales find you!

Here are more examples of stocks that were crushed after earnings:

CMG Missed

PCLN Missed

GOOG Missed

LNKD Actually Beat estimates; however, they guided lower on future revenue:

Here is what can happen when the news is much better than expected:

AMZN Beat earnings actually made a PROFIT and stock exploded higher

The next morning this White Whale trade was caught

NFLX Surprised and then beat again

GOOG Beat

The goal is for your options to end up in-the-money (ITM) so you are guaranteed to get filled when you want to sell and cash in. Remember, we are not trying to pick the winners, we are just getting into position to benefit from surprises or unexpected news and the massive 10%-20% or more drops and pops.

Ok, so now that you understand the basic concept, let me explain the best way to play for these Lotto and White Whale option trades.

LOTTO TRADES

When you are fishing for Calls

The key is not buying too far out of the money (OTM). Remember, we are speculating and so are the Market Makers, but when a surprise event happens, the stocks will move in a 5% - 10% window, so your option strikes MUST be inside these movements to give you the best odds of being in-the-money (ITM) and cash in!

When you are fishing with PUTS, you can go 8%  - 13% OTM because, when people head for the exit, the drops are much greater than when they rise. I always pay close attention to these two moving averages when determining my strike choices: The 89 and then the 200 day moving averages.

Over the years, I have learned that when a stock gets wiped out on bad news or takes off on good news, it tends to move on average 10%, but if the news is a surprise, the move up can be +20%, but the move down, well, that can be over 50% like LNKD before MSFT bought them out. When I look for Lotto puts, I like to make sure I buy the options above the major moving averages that are within a 10% move because that gives me the best odds of being ITM and guarantees me a fill when I want to sell. When a stock takes off, they typically go up around 10%, so you want your option strikes to be just under that to have the best probability of being ITM as well. Depending on the price of the stock you are trading, these options are typically cheap ($0.10 cents to $0.25 cents per contract) because they are pretty far OTM, so you are not spending a lot of money to get into these Lotto Trades; however, most of the time, they will expire worthless, but when they do pay off, you are making a boat load of money that can easily cover all the losses you took on the ones that do not work out.

Some of my best picks that tuned into massive Lotto and Moby Dick Mega Lotto winners were on: GOOG, AAPL, PCLN, NFLX, ISRG, META, CMG, LNKD (before they were bought out by MSFT) and GLD for a whopping 30,000% gain in two days...WOW.

The bottom line is picking the correct strikes so you are ITM and can cash in the most profits possible!

==================================================================================================

Session 4 — How to cast your White Whale nets.

One of my favorite speculation trades is fishing for and catching, what I call, the White Whale Trades!

This takes a lot of luck, but with my strategy in place, you can and will find these massive winners several times a year. When you do get one on the hook, it will make you thousands of percent in profits...THE SAME DAY!

The hard part is figuring out what strike price's to buy, because if you are not inside the range of the stocks movement for that day, then you will have a hard time getting filled when you want to sell—unless there is a large amount of volume.

So, how do you figure that out? Well, for many years, that information was not readily available to retail investors. In fact, you needed to have complex mathematical skills or access to powerful trading computers to crunch the numbers, but thanks to increasing technology, a master trader/market maker (Tom Sosnoff) developed his own platform to do the hard math instantly!

Today, that platform is offered by TD Ameritrade and is named:

 Think or Swim (TOS).

With TOS, you can do many complex analytical calculations instantly to help you determine the best statistical probabilities that can make your trades more profitable. When it comes to finding option prices to catch the White Whale, they have a very cool indicator that shows you the mathematical expected move a stock can make up or down the next day. 

Here is an example:

On April 25, 2013, AMZN was reporting earnings and the expected Market Maker Move (MMM)  calculates a +/- $19.14 move:

This can put the stock up at $295 or down to $255 the next trading day.

Note: the expected move fluctuates every minute, so pick your option strikes in the last half hour of trading.

We always do these fishing expeditions with WEEKLY options because

 we want the implied volatility to be as low as possible giving us the best opportunity for low entry targets.

The best day to do your Moby Dick fishing orders is on Thursday for expiration Friday; because most of the implied

volatility (IV) has been deflated from the option prices; and when the stock moves in your direction, the option profits can go parabolic!

Tip: The best time to catch a White Whale is the day after an earnings release.

 Here are the options and prices for AMZN on 4/25/13:

Note: If the closing price is in between strikes, then start with the closest and work your orders from there.

I place my orders on both PUTS and CALLS because I do not know which direction the stock will ultimately react once trading starts.  I like to buy one strike out-of-the-money (OTM) and then go up or down from there until I cover 4 strikes. This give you the best odds of being in-the-money (ITM) and guaranteeing you a profit—if you have a couple of days before expiration, then you can gamble with one more strikes OTM just in case the stock makes a much larger move than expected.

NOTE: If you are OTM on expiration day, you are NOT guaranteed a fill at any price, so you have to take profits when you have them; otherwise, any move in the stock against you will wipe out the profits you have instantly—especially if its expiration Friday.

If you can watch your trades, then use my ROI targets as a guide, and once your profits exceed these,

you can always put in a stop LIMIT and adjust your stop every 100% your profits move up.

Note: Many of the WW trades I catch result in multi-thousands of percent ROI in minutes

or throughout the trading day, so you do not want to cut yourself short—sell some keep some to the end of trading.

I typically sell 50% at a 300% ROI and let the rest ride taking profits along the way.

      I use one triggers other (OTO) or 1st Triggers Sequence orders:

Past White Whale Winners!

My first target strikes are one above the MMM and then I work my way down from there.

Here is how it looks when I post the trade ideas to my website:

T1 & T2 are Target Entry Points.

ROI targets are suggested exit points.

The 300%-500%+ happen often when the entry points are under $0.25 cents.

Tip: If you cannot watch your trades, then put in Day or GTC orders to sell at these targets at the same time and

lock in a nice profit; then compound your profits on the next trade with more contracts.

Another option is to sell 50% at the target ROI and see where the others take you during the trading day.

NOTE: if you are out-of-the-money (OTM) them you need to take off 80% at the open.

The way I predict if a stock can make a much larger move is with the implied volatility (IV%); and the TOS platform shows you the IV% to the right of the options expiring strike:

AMZN

Here is a shot of LNKD on 7/26/13 and as you can see the IV% was on the extreme side.

I look to see if the IV is above 75% (sometimes it can be 150% or more) then I will add more contracts to my OTM strike because the move can be much larger than the MMM expected move with increased volatility giving us a quicker profit when they crush the IV% after the open!

Naturally we want to get the most contracts for the cheapest price, so I place my largest orders at price ranges from $0.01 to $0.10 cents.

I place orders at or slightly above 89% for Target 1 (T1) and 55% for Target 2 (T2) 

Note: these are Fibonacci numbers

Sometimes I go up to 95% below the previous days closing ASK if the IV% is very high.

Once you have your target strike(s), then you need to decide on the contract size. So far, I have had no problem getting filled on 10–20 contracts, but if you want to buy 50–100 on the $0.10 cent options or less, then you need to place multiple orders dividing up your total desired contract size and route your orders to the different Market Makers because most will not have that many available and you may NOT get filled on all of them.

I have not had much luck buying from one MM, and in fact, I usually get filled on just 1–3 and then all of them move the price higher. I do not for one second think that is coincidence, I believe that is my brokerage manipulating price and trying to get me to cancel and chase price so they can collect more commissions.  (I can't prove it...I just suspect it based on personal experience placing thousands of orders over the decades I have been trading.)

To get around this "manipulation" I have a custom order entry built into TOS to "BLAST" several of the Market Makers. (ironically, my broker charges me MORE to route to multiple MM's since I am not using there alleged "BEST" or "INTELLIGENT" route which confirms my suspicions!)

Remember: When your broker offers you a "BEST" or "INTELLIGENT" route, that is for THEIR BENEFIT as far as I am concerned! I may be wrong in my assumptions, because they always "tell" me they are not taking the other side of my trades, but based on literally thousands of trades, I have to say my experience using the supposed "BEST route has resulted in fewer fills on all my contracts. 

NOTE: TOS has, what they call, their "BEST" route, which allegedly gets you a faster and better fill or price. In my experience, this is NOT the case when you want to buy more than 50+ contracts. Every time I try to buy 50 - 100 at $0.10 or less using their "BEST" route, I typically get filled on a few contracts and then ALL the market makers ASK prices go higher; however, when I divide up my contracts and "BLAST" to all the Market Makers, then I get filled on everything most of the time.

If you plan on buying a lot of contracts, then you should consider placing orders at staggered entry prices and contract size, but if you have a small account, then fish for entry prices under $0.50 cents until you build up your trading account—you will miss a lot of winning WW trades, but be patient, with 500%-8,000% ROI on the smaller entry prices, it will not take much time until you can fish for all the strikes and entry prices!

Session 5 — How to manage your filled White Whale orders.

Getting filled on these trades is exciting because you know, from my past experience, you have a very high probability of making a lot of profit. The challenge is how much profit do you take? Obviously, you cannot get every high-of-the-day, and if you are still OTM, any profits you think you have can be wiped out in literally in seconds, so you have to have orders in at a pre-determined amount of profit you want to make and stick to it for 90% of your contracts.

REMEMBER: You cannot go broke making profits, but if you want to be a hog, then you WILL get slaughtered—eventually.

Once you have profits on multiple contradicts, take some and let the rest ride rather than try to milk every trade for maximum profits, It is much better to accumulate and increase your contract size on future trades—the goal is to build up to 100 contracts so you can literally have a MILLION DOLLAR DAY in the future!

When you have OTM options, these are the ones that explode into the multi-thousand percent ROI; however, you are NOT guaranteed a fill if you have more than 10 contracts. There has to be a buyer on the other side of your transaction, so it can get frustrating if you have 50 or more. Plus, if the stock moves down sharply, the profits you think you have can and will be wiped out in seconds so taking profits on OTM is crucial. I like to stack my exit orders as the stock is moving up because that is when you have the best chance of getting filled.

You see, most investors do not anticipate or predict price movement, they react to it. If the stock is moving higher rapidly, then investors love to buy the OTM options and hit the buy button with market orders, so if you are already in line with offers, then you get filled. If you have all your contracts up for sale at a single price, you may not get filled on all of them so stagger your orders for the best exit opportunities.

Session 6 — How to compound your trades for massive profits!

Once you start building your trading account using this strategy, you want to obviously make more money. DO NOT make the mistake of buying a lot of contracts on one strike or stock. Spread your orders on multiple stocks and strikes to increase your overall odds of success. The best part about trading options is that it is scalable. There are only capital limits to the amount of contracts you can buy so build up your capital and increase your profits with more contracts.

This spreadsheet shows you the power of compounding multiple stocks and strikes with just 1 contract!

Here were some past charts for your review:

EA

PCLN

TSLA

AAPL

GMCR

As you can see, taking profits is very subjective. Sometimes I get them in minutes and sometimes it takes hours to all day. If you have a pre-determined amount, then stick to it because you can make substantial gains in your account over time. If you try to make the multi-thousand percent ROI every time, then you will miss out and it will take a lot longer...take profits and compound your profits by scaling up your contract size over time—Entry is Key...Exit is Everything! ^TM

Session 7 — FISHING FOR THE WHITE WHALE MULTI-THOUSAND PERCENT WINNERS!

Ok, if you want to have the best possible chance to make multi-thousands of percent in profits, then what you are hoping for is a big move in both directions in after hours or pre-market trading the next day, that way, the premium gets crushed and you can get a fill at dirt cheap prices; however, you must have standing orders the day before or in the pre-market because it's very difficult to buy a lot of contracts in the first few minutes of trading if you are manually doing it.

If you are in line the day before, then you have a higher chance the computer will "auto-fill" you on some or all of your contracts at a better price. The reason for this is because traders who bought the night before are getting crushed in the morning and stop orders are becoming market orders.

When you have your pre-market LIMIT orders sitting there, you stand ready to pick up all those investors options who are getting out or panicking taking anything they can get—you are the liquidity provider!

The markets are almost 100% electronic, so what the computers are looking for in the first seconds of the opening is standing orders to buy. This is why options get whacked in early trading. The prices fall until the computers find liquidity providers—and you want to be FIRST IN LINE—so put your orders in the night before or a half hour before the market opens...first come first served!

If you are trying to buy more than 10 contracts, then you have to send in multiple orders and staggered LIMIT prices.

NEVER USE MARKET ORDERS WHEN YOU BUY!

Picking the correct strike prices is an art, so you have to be a bit of a detective. We want to listen to the conference calls and read the after market commentaries to gauge the bias for the next day. If the stock blows out the numbers and guides higher, then typically the stock will bounce around in post and pre-markets.

What we want for CALL plays is the stock to initially open down crushing the premium and/or triggering stop orders; and then giving us a super cheap fill. Once the first few minutes of trading are settled, we want the stock to catch a bid and start the climb higher rapidly pumping up the implied volatility giving us bigger profits!

This was an actual trade I did on AAPL.

I had a standing order in for 10 contracts at $0.20 cents, and when the market opened, I was instantly filled for $0.05 cents!!

That Bubble Lo at $0.05 was ME!

If you are going for Puts, then you want the stock to gap up and start to sell off immediately—Puts are the best for getting the biggest winners as stocks typically fall farther and faster than they go up.

Making profits with this strategy is an art form.

If you want to "swing for the fence" take some profits off the table in the first 5 - 15 minutes and let the rest ride. I have found that if you get big profits early in the trading session, TAKE IT, because too many times I have had a nice profit early on only to see it crushed in the afternoon session (especially if I am OTM), but if the stock does not go your way until the afternoon session, then you are more likely to see it push right on through to the expected price target and you can make the biggest profits. Still, you should consider taking 50-75% off when you have an early profit and letting the rest ride into the close—just be sure to sell before the bell even if you are ITM to avoid assignment and extra commission costs.

Here is a trade I did on AAPL 5/13/13

It's better to accumulate profits vs. swinging for the fence on a single trade because there is ALWAYS another White Whale trade coming; and if you keep building your account; then eventually you can scale up your contract size, and one day, you will be able to buy 100 or more contracts and make enough profit to by a Mansion and a Yacht...lol!

Here is a classic example of what I am teaching you:

On 4/18/13, GOOG reported earnings that beat estimates but sales missed forecasts. This initially had the stock rally nearly $30 in post market trading; however, the stock was giving almost all of it back in pre-market trading the next day.

Because GOOG was about to get crushed, the OTM call options were also getting crushed at the open giving some lucky investors a perfect opportunity to buy those calls on the cheap...real cheap!

As you can see, the day before at the close, the APR13 790 calls were trading at $8.50 and by the open they were as low as $0.10 CENTS. Also the APR13 780 Calls were trading for $14.00 and they opened at $0.70 CENTS!! By the end of trading, both of these strike prices made a fortune for you when GOOG took off in the afternoon session closing right at the expected move of $800; which was a $33.00 move as predicted by the TOS platform the day before!

If you were fishing with standing orders the night before, then you would have been filled because all those investors that bought the day before were getting crushed. Notice how there is a "Lo" bubble marker? Well, that means somebody BOUGHT and somebody SOLD there.

If you were the buyer, look at the potential profits you can make when you are fishing for the White Whale!

Now very few trades work out as well as this one did, so you have to decide how much risk capital you want to spend until you connect with one of these trades, then you can start building your way up to 100 contracts.

I want  to be clear that most of these trades will expire worthless, so you need to have a strong cash flow or day trading plan as outlined in this training series so you can keep fishing until you catch one—and you will catch several in a years time!

With thousands of percent in returns, it does not take too many winners to pay for all your losing trades. You only need a couple big winners and your trading account will get very fat with cash to keep fishing. The best part of this strategy is when you do start making profits, you can scale up your contract size to the point when you want to be able to buy 100 or more contracts.

NOTE: Buying more than 20-100 contracts OTM can create a challenge when you want to sell unless the options strike you are selling has a substantial amount of volume, so I stack my orders in lots of 10 contracts ahead at a price I think it will get to. That way if the stock starts to build momentum, the options will spike up and novice investors will buy with market orders. If you are already in line with offers, then you will be first out as the computers will match your offers on the way up.

If you are ITM when you want to sell, and you cannot get a fill, you can always exercise and sell the stock. This does create slippage scenarios and increased costs, but hey, if you have 100 contracts (which means you control 10,000 shares) then you can afford a little slippage if it comes to that—pigs get fat...hogs get slaughtered!

I prefer to do these trades during earnings season, especially when they are reporting within a couple of days of expiration— the volatility will make your profits massive!

Here are some examples of stocks that were either crushed or explode over earnings reports:

4/12/13 GOLD CRUSHED

GLD 147 Puts exploded to a gain of 30,000%

5/10/13 TSLA Blew out earnings Lotto Trade

Lotto Trade

White Whale on Friday 5/10/13

This strategy is exciting and can flat out make you rich!

It's time to get busy building your nets so you can ride along

with me on the next Lotto Trade & White Whale hunt!

Profits Up!

The donFranko 

Below are some of the massive winners I have posted to my site over the years.

It's happened in the past and it will keep happening in the future!

Click Here for 2015 Results

Click Here for 2014 Results

RECENT LNKD SWING TRADE POSTED 2/3/16

RECENT FB MEGA LOTTO TRADE POSTED 1/24/16

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