Stock Option Trading Continues at Record Setting Pace

October 25, 2006 (PRLEAP.COM) Business News
“Investors use of options for investing in stocks continues at the record breaking pace that we predicted in our previous press conference back in April,” said Roger London, PhD a leading investment analyst. Quoting industry sources at a recently concluded press conference, London continued, “Once again the Chicago Board of Options has reported that September’s volume was up 34% over the previous year. In fact, the year to date volume exceeds all of last year.”

As investors shift from the under performing real estate market back into equities, the market has hit record levels. Along with this, investors are naturally looking to take advantage of this increase by using stock options to boost their leverage.

Predicting both direction and time frame are critical in stock option trading. An extensive research project was completed earlier this year to try to identify an approach that could be used to profitably trade stock options. The analysis used 30 years of stock data. The results yielded a statistically validated method that was proven to be effective.

Although the approach exceeds the returns on the major market indexes especially during strong up trending market periods, the data shows that returns are still quite good for flat market periods as well.

“We’ve just updated the results for the year through 8/31/2006,” said London. “Although the average profit per trade dipped slightly as a result of the market decline in May, June, July, the average profit per option trade was still an excellent 30%. And feedback from other investors using this approach has been excellent.”

A detailed report has been completed and is available to interested investors. The report includes the research data and all previous stock trades for the past 5 years using this new strategy. “We are still planning on limiting the distribution of this report to 300 in order to lessen any impact that it might have on the market,” said London.

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