EXTREME OPTIONS
Written by BigTrends Administration
EXTREME OPTIONS CATERS TO ACTIVE OPTIONS TRADERS.
Extreme Options focuses on options trades in the final month of the option's life, and often even in the final week of the option's life. While this might make for a higher risk strategy not suitable for the average investors, action options traders will see the potential for much higher returns thanks to the leverage of these "front month" options. In addition, risk is managed by never holding trades more than 5 trading days, what many would term as "swing trading." To the options trader, time is the enemy. With Extreme Options, you greatly reduce the time decay factor by only holding options for very short periods, while still seeking to take advantage of the bigger moves that can occur in 1-5 days.
In the most Extreme example, with only one week or less remaining on in-the-money options contracts, most of their time value has been eliminated. By reducing the exposure to the option's time value, you increase the percentage of intrinsic value you purchase with each contract. This increases your leverage on these trades, while also allowing you to manage your risk better thanks to the relatively smaller time decay associated with these front-month in-the-money options.
Our risk management measures, coupled with the high intrinsic-value advantage of the in-the-money options in the final few weeks before expiration, make Extreme Options the most intelligent way to make focused high-leverage trades over short holding periods. With such high intrinsic value on the contracts built-in as a buffer, the downside risk is minimal compared to the potential gains.
Extreme Options identifies sharp trends that have established themselves technically and have the potential to move quickly based on our intraday charts, transmitting trade recommendations trades via e-mail or Yahoo! Instant Messenger. Some moves may have a holding period of a day or less, so choose the transmission method that is most accessible to you. Alternatively, you can automate your trades through several selected brokers ... just call for details.
The Extreme Options advantage is most dramatic during expiration weeks, where we'll get maximum bang for our buck. However, we'll put out front-month options trades any time in the final few weeks before expiration where we see opportunities. And you will receive educational email updates at the end of every trading day, whether we've made a trade that day or not. Our goal is to grow both your options portfolio and your options knowledge consistently via your Extreme Options experience.



