About David Miles

Our Strategy

Have any of you experienced this roller coaster ride and are nodding your head in agreement?

According to a recent study, 79% of investors lose money in the stock market with 55% of those losing their entire investment. The remaining investors make a little profit but only 4% make a 50% return or more. No one invests in the stock market to lose money but these statistics show how difficult it is to make money over the long haul.

If you are a brand-new stock option investor the odds of making a consistent profit are very much against you unless you get the right training from a successful, experienced coach.

After a few years of trial and error, I finally developed a personal trading strategy for buying options that would produce profits approximately 65%-70% of the time. This strategy, like many others, produced excellent profits in some months, not so well in other months and a few months lost money.

Overall it was producing nice profits but I still was not satisfied. I didn’t want a strategy that tended to go in streaks of profit and losses (I hate losses!). I wanted a strategy that produced profitable trades 85%-90% of the time (who doesn’t want this, right?).

I had this crazy idea that I could find a trading strategy that would make money every single month. What I eventually developed was much better than that. I discovered a unique and powerful strategy that typically makes money on a weekly basis. This powerful new strategy evolved from my old strategy and was based on where I placed stops.

A stop loss is the share price where I would exit a trade that was going against me to prevent further losses. A loss that I had determined before taking the trade that I was willing to risk. What I noticed over time was that this first stop loss that I placed was not hit approximately 85%-90% of the time. This observation was going to evolve into a powerful new strategy that would give me the opportunity to make a consistent cash flow from my trades almost every week.

After observing how my stop losses behaved a thought occurred to me. If my first stop loss was not hit 85%-90% of the time, my stop loss price was predicting where the share price would not go to 85%-90% of the time.

If I could make trades, based on the share price not moving to where my first stop loss was placed, my profitable trades would jump from 65%-70% to 85%-90%.

Now here’s the good part! My strategy will tell you where the share price of a particular stock has a very low probability of rising above or falling below during the current week.

You can sell call or puts with strike prices above or below these price levels and keep the premium 85%-90% of the time. If the share price doesn’t move above or below the strike price you sell in the current week you would make a profit by collecting the premium paid to you by the other trader.
Past performance is no guarantee of future results but my strategy has been making consistent profits for years in all types of markets.

When I discovered the way to take advantage of my observation of my stops it was a huge breakthrough. The opportunity for consistent cash flow was in a new class of options called weekly options. Weekly options were introduced in 2005 and volume has exploded. They behave like monthly options in every respect except that they only exist for a few days. They are introduced each Thursday and expire on Friday eight or more days later. Traditional call and put options always expire on the third Friday of the month giving option investors 12 monthly expirations per year. With weekly options, investors have 52 expirations per year. With this large number of expirations, investors have more opportunity to profit and create a consistent cash stream from these options.

If you could make 85%-90% profitable trades each week how would that impact your personal finances? A higher probability of making profitable trades is a powerful way to make consistent profits by trading stock options. My personal goal is to realistically double my money each year