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$25K Options Trading Challenge: Proven techniques to grow $2,500 into $25,000 using Options Trading and Technical Analysis
The annual $25k challenge, takes an initial sum of $2,500 and grows it into $25,000 in 1 year or less in the Stock Market. We do this by combining the leverage provided by Options trading strategies with Technical Analysis. If you are a beginning, intermediate or advanced Options Trader, this book is for you. It cuts all the fluff around investing and shows you few simple strategies, which can amplify your Stock Market returns.
In this book you will
In this book you will
- GenresFinance
141 pages, Kindle Edition
Published November 5, 2019
355 people are currently reading
405 people want to read
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Displaying 1 - 30 of 41 reviews
July 31, 2021
The author used a very simple language to reach the point of leveling the field for any new comer to stock market and options trading.
Started with simple ideas about stock price movement, then the technical analysis used to anticipate the price movement. Then, explained the strategy used to generate money (entry points, expected profit, expiration date, dealing with loss). Once the reader finishes reading these chapters then will be ready to understand the strategy used with real examples.
I started trading options starting Jan 2021 (almost 7 months till this moment), and with my technical analysis I was able to grow 8k to 29k in less than a month (I was lucky to catch AMC at 13.6 before going to 70, and BIIB at 404 before falling to 320). Yet, that method requires lots of researching, reading news, and analysis .
In this book, I found one way that requires less efforts, reduces risk, and offers 100% reward (1:1 ratio). A steady routine. A simple formula that can generate money based on simple math (specifically using the standard deviation principle and probabilities). This book offers one way that has been tested for over 10 years, and I really appreciate the author for sharing it with everyone in a very easy to understand way, and will use it as one weapon in my trading arsenal.
Started with simple ideas about stock price movement, then the technical analysis used to anticipate the price movement. Then, explained the strategy used to generate money (entry points, expected profit, expiration date, dealing with loss). Once the reader finishes reading these chapters then will be ready to understand the strategy used with real examples.
I started trading options starting Jan 2021 (almost 7 months till this moment), and with my technical analysis I was able to grow 8k to 29k in less than a month (I was lucky to catch AMC at 13.6 before going to 70, and BIIB at 404 before falling to 320). Yet, that method requires lots of researching, reading news, and analysis .
In this book, I found one way that requires less efforts, reduces risk, and offers 100% reward (1:1 ratio). A steady routine. A simple formula that can generate money based on simple math (specifically using the standard deviation principle and probabilities). This book offers one way that has been tested for over 10 years, and I really appreciate the author for sharing it with everyone in a very easy to understand way, and will use it as one weapon in my trading arsenal.
April 6, 2021
This book gave great strategies but I feel it lacked more depth into the main focus of the strategy. Overall a good book to scratch the surface of what you can do.
December 7, 2019
Pretty simple strategy
So this is really how simple options trading can be. Most people shy away from options because they read very complicated books and think they need to know everything about everything. Not true. I recommend people that are not successful with options trading to read this book and apply the strategy. Just look at some parameters, check the charts and put on a trade. If it doesn't work, exit. If it works, hold. At worst you will lose a little money. However, if it works out for you, you can have a steady income for life! The risk reward ratio cannot get any better than that! Also, the author debunks a myth that only option sellers make money. Remember, every put that closes out of money, there is a same strike call that closes in the money.
So this is really how simple options trading can be. Most people shy away from options because they read very complicated books and think they need to know everything about everything. Not true. I recommend people that are not successful with options trading to read this book and apply the strategy. Just look at some parameters, check the charts and put on a trade. If it doesn't work, exit. If it works, hold. At worst you will lose a little money. However, if it works out for you, you can have a steady income for life! The risk reward ratio cannot get any better than that! Also, the author debunks a myth that only option sellers make money. Remember, every put that closes out of money, there is a same strike call that closes in the money.
December 10, 2025
Read upto chapter 8 only since I don't understand chapter 7&8 😮💨.
Takeaways:
chapter 3: Gaining an edge in the stock market
"The Dow theory operates on the efficient markets hypothesis (EMH), which states that asset prices incorporate all available information." - This pretty much means that you cannot trade news
Never chase a stock on news. It is a battle you will never win!
One way you can gain an edge in the stock market is by trading extremes.
* Price Extremes - Whether it is an uptrend or downtrend, if the price movement extends way beyond the mean, most of the time it reverts to the mean.
* volatility extremes - The more volatile they are, the more they tend to move away from their mean, which gives us trading opportunities
chapter 4 & 5 : Spotting Market Extremes and Trading Opportunities Including technical indicators
Follow a limited universe of stocks :
* what works for me is creating a universe of stocks which I enjoy following and reading about
* I encourage you to have several watchlists spanning multiple sectors like Oil, Health, Financials, Technology, Industrials etc. This way you can readily switch to a different bucket of stocks based on market conditions.
Quick summary of the criteria I use to select the stocks that I want to trade :
1. Avoid trading if there is any material news like mergers, buyouts, bankruptcies, lawsuits on the stock that just came out.
2. Avoid trading, if there was an earnings announcement that just happened.
* I usually wait at least 3-5 days after the earnings announcement to evaluate any trading opportunities.
* whenever I put on a trade, I make sure that earnings are at least 30 -50 days in the future from today’s date.
3.
Price:
Avoid lower priced equities Avoid low volatility stocks (i.e stocks that don’t move around a lot)
Volume:
Stock should have >= 1 million shares trading on a daily basis.
ATM options should ideally have >= 500 in volume
Open Interest:
The open interest should be >= 1000
Bid/Ask spread:
Tight bid-ask spreads are better
4. Technical indicators:
Bollinger Bands (to spot trading opportunities) and Keltner Channels ( to avoid low volatility time periods):
* When a stock is over-extended to either the up or down side, and that behavior is not in-line with its personality, the price of the stock starts testing the outsides of the Bollinger Bands®
* when bollinger bands are outside the Keltner channels, you have periods of higher volatility and chances of profitable trade setups
ADX: (to avoid putting on bad trades)
The purple line indicates the strength of the current trend.
When the green line is above the red line, it indicates a bullish momentum and when the red is above the green line, it indicates a bearish momentum
Regardless of market direction, if the ADX is sloping upwards, it indicates the current trend is very strong, and this means “do not put on that contrarian trade”
RSI: (to spot trend exhaustion)
If RSI is above 70, but then it starts trending down below 70. That is the time to put on your bear mask and get into your mean-reversion trade.
2 other indicators: ( if the signals I am getting are not clear)
* TTM Squeeze - gives you clear signals about when to take a trade and when to stay out.
* OBV - shows crowd sentiment that can predict a bullish or bearish outcome
5. Look for days where the DOW jumps or pulls back more than 200 - 500 points (the greater the better)
If the overall market caused the stock to move violently and it had nothing to do with the stock itself. If you come up with a “yes”, from the simple check above, it is time to put on a trade!
Takeaways:
chapter 3: Gaining an edge in the stock market
"The Dow theory operates on the efficient markets hypothesis (EMH), which states that asset prices incorporate all available information." - This pretty much means that you cannot trade news
Never chase a stock on news. It is a battle you will never win!
One way you can gain an edge in the stock market is by trading extremes.
* Price Extremes - Whether it is an uptrend or downtrend, if the price movement extends way beyond the mean, most of the time it reverts to the mean.
* volatility extremes - The more volatile they are, the more they tend to move away from their mean, which gives us trading opportunities
chapter 4 & 5 : Spotting Market Extremes and Trading Opportunities Including technical indicators
Follow a limited universe of stocks :
* what works for me is creating a universe of stocks which I enjoy following and reading about
* I encourage you to have several watchlists spanning multiple sectors like Oil, Health, Financials, Technology, Industrials etc. This way you can readily switch to a different bucket of stocks based on market conditions.
Quick summary of the criteria I use to select the stocks that I want to trade :
1. Avoid trading if there is any material news like mergers, buyouts, bankruptcies, lawsuits on the stock that just came out.
2. Avoid trading, if there was an earnings announcement that just happened.
* I usually wait at least 3-5 days after the earnings announcement to evaluate any trading opportunities.
* whenever I put on a trade, I make sure that earnings are at least 30 -50 days in the future from today’s date.
3.
Price:
Avoid lower priced equities Avoid low volatility stocks (i.e stocks that don’t move around a lot)
Volume:
Stock should have >= 1 million shares trading on a daily basis.
ATM options should ideally have >= 500 in volume
Open Interest:
The open interest should be >= 1000
Bid/Ask spread:
Tight bid-ask spreads are better
4. Technical indicators:
Bollinger Bands (to spot trading opportunities) and Keltner Channels ( to avoid low volatility time periods):
* When a stock is over-extended to either the up or down side, and that behavior is not in-line with its personality, the price of the stock starts testing the outsides of the Bollinger Bands®
* when bollinger bands are outside the Keltner channels, you have periods of higher volatility and chances of profitable trade setups
ADX: (to avoid putting on bad trades)
The purple line indicates the strength of the current trend.
When the green line is above the red line, it indicates a bullish momentum and when the red is above the green line, it indicates a bearish momentum
Regardless of market direction, if the ADX is sloping upwards, it indicates the current trend is very strong, and this means “do not put on that contrarian trade”
RSI: (to spot trend exhaustion)
If RSI is above 70, but then it starts trending down below 70. That is the time to put on your bear mask and get into your mean-reversion trade.
2 other indicators: ( if the signals I am getting are not clear)
* TTM Squeeze - gives you clear signals about when to take a trade and when to stay out.
* OBV - shows crowd sentiment that can predict a bullish or bearish outcome
5. Look for days where the DOW jumps or pulls back more than 200 - 500 points (the greater the better)
If the overall market caused the stock to move violently and it had nothing to do with the stock itself. If you come up with a “yes”, from the simple check above, it is time to put on a trade!
January 7, 2022
The key takeaways for me were:
1) Only put 30% of your capital to work at all times. Keep the rest in cash.
2) Consistently trade credit/debit spreads with the losses capped at 50% and a target gain of 100% per trade.
Furthermore, I really liked the simplicity of the author's strategy for finding the right opportunities. The author uses layman terms to explain the strategy and despite being unfamiliar with the ADX line indicator, I was able to follow along. That said, a certain level of familiarity with options is necessary to appreciate and follow some discussions in the book.
I would have appreciated more examples of managing trades that did not work. For example, the author mentioned some trades that did not work during September 2020, but he used the spare cash to initiate new positions which offset the losses incurred on the open positions. This section was interesting and I wish it had more details about how the new positions offset the losses.
1) Only put 30% of your capital to work at all times. Keep the rest in cash.
2) Consistently trade credit/debit spreads with the losses capped at 50% and a target gain of 100% per trade.
Furthermore, I really liked the simplicity of the author's strategy for finding the right opportunities. The author uses layman terms to explain the strategy and despite being unfamiliar with the ADX line indicator, I was able to follow along. That said, a certain level of familiarity with options is necessary to appreciate and follow some discussions in the book.
I would have appreciated more examples of managing trades that did not work. For example, the author mentioned some trades that did not work during September 2020, but he used the spare cash to initiate new positions which offset the losses incurred on the open positions. This section was interesting and I wish it had more details about how the new positions offset the losses.
April 5, 2020
Author mainly focuses on three things
1) Learn about options, specially beta, theta and IV before making any trade.
2) Use Technical indicators for increasing your chances of success. He mainly talked about Bollinger, keltner, ADX, RSI. You can use any indicators you are comfortable with.
3) using options strategy to cap the losses. Mainly debit and credit spread.
This book is good for beginners. I also checked the author website. He publishes his trades for learning purpose. You can get most out of this book if you follow his trades and try to follow whatever strategy he has discussed in this book.
1) Learn about options, specially beta, theta and IV before making any trade.
2) Use Technical indicators for increasing your chances of success. He mainly talked about Bollinger, keltner, ADX, RSI. You can use any indicators you are comfortable with.
3) using options strategy to cap the losses. Mainly debit and credit spread.
This book is good for beginners. I also checked the author website. He publishes his trades for learning purpose. You can get most out of this book if you follow his trades and try to follow whatever strategy he has discussed in this book.
May 4, 2020
The book was really good and it sparked a lot of interest in other thing in me I want to study now. I enjoyed the end of the book the most as it gave real life examples and explanations on how to use the strategy described in the early parts of the book.
If you are not very experienced in the trading and indicators the beginning of the book is great to read. As I knew majority of it already I was pretty much skipping those parts. The real meat comes at the last two chapters and I decided to give it a try and find a suitable signal system which would work for me and be easy to understand and implement. This book could be a good start point.
If you are not very experienced in the trading and indicators the beginning of the book is great to read. As I knew majority of it already I was pretty much skipping those parts. The real meat comes at the last two chapters and I decided to give it a try and find a suitable signal system which would work for me and be easy to understand and implement. This book could be a good start point.
September 1, 2021
Short and to the point. It gives a good initiation to option-picking logic with some practical examples. Also, the explanations behind credit and debit spreads are good. Recommended for people who already have a basic understanding of options and want to go beyond naked calls and puts. The only thing you might want to consider is that the examples are in a US context and so, the way in which they are exercised would not be directly relevant to those trading in the Indian options (which are Europen in nature).
July 30, 2020
Like the Strategy
What I like most about this book compared to others I have read is it’s straight to the point and no fluff. I like the real world examples with distinct details of the strategies. I have been attempting swing trading stocks with my small account and have been flat for months. I will try these techniques and will report the results. The only reason I didn’t give a five star is because I have not experienced the results. I will updated after results.
What I like most about this book compared to others I have read is it’s straight to the point and no fluff. I like the real world examples with distinct details of the strategies. I have been attempting swing trading stocks with my small account and have been flat for months. I will try these techniques and will report the results. The only reason I didn’t give a five star is because I have not experienced the results. I will updated after results.
August 2, 2020
Very informative and straight to the point
I enjoyed this book. He went straight to the point and very little fluff. He gave a good explanation of the technical indicators that he uses. It changed my viewpoint on how I looked at stocks. I already had a system in place that I learned from another trader, and now, with his system added, I know I will make even better trades. Also, yes, he does explain his strategy in this book.
I enjoyed this book. He went straight to the point and very little fluff. He gave a good explanation of the technical indicators that he uses. It changed my viewpoint on how I looked at stocks. I already had a system in place that I learned from another trader, and now, with his system added, I know I will make even better trades. Also, yes, he does explain his strategy in this book.
April 11, 2020
Great read for the beginning trader
I would highly recommend this book to anyone who has a decent grasp on basic options trading and is looking to develop strategies and implement them in their own investing. Very easy to read and easy to understand. Also, unlike many “how to trade options” books, this is not in the slightest a sales pitch. Would highly recommend
I would highly recommend this book to anyone who has a decent grasp on basic options trading and is looking to develop strategies and implement them in their own investing. Very easy to read and easy to understand. Also, unlike many “how to trade options” books, this is not in the slightest a sales pitch. Would highly recommend
November 6, 2020
Short and sweet little book. You can complete it all in one sitting.
Cons: Lots on emphasis on indicators, Nishant relies heavily on them. Reading plain market action is overlooked for the sake of how multiple lines interact with each other.
The title is exaggerated. You may take a thing or two from this book but the journey to success is long and you probably won't see dramatic change right after you read it.
Pros: A fellow retail trader took the time to write a book and share his insights on trading - If you like trading, reading this cannot be a waste of time.
Easy to identify with. The experience of having high hopes followed by great disappointment.
If you're an experienced options trader - The author tells you what part you can skip.
Cons: Lots on emphasis on indicators, Nishant relies heavily on them. Reading plain market action is overlooked for the sake of how multiple lines interact with each other.
The title is exaggerated. You may take a thing or two from this book but the journey to success is long and you probably won't see dramatic change right after you read it.
Pros: A fellow retail trader took the time to write a book and share his insights on trading - If you like trading, reading this cannot be a waste of time.
Easy to identify with. The experience of having high hopes followed by great disappointment.
If you're an experienced options trader - The author tells you what part you can skip.
November 9, 2019
Great book for newbies and pros
The author explains things in an easy to comprehend way with notes on charts to explain complicated concepts which allows the reader to have a clear understanding of how to execute a high probability trade.
The author explains things in an easy to comprehend way with notes on charts to explain complicated concepts which allows the reader to have a clear understanding of how to execute a high probability trade.
February 2, 2020
Worth reading and implementing strategies...
Appreciate the author for sharing his experience. Simple language, easy to understand and something that could be implemented comfortably. Would like to read more from the author...
Appreciate the author for sharing his experience. Simple language, easy to understand and something that could be implemented comfortably. Would like to read more from the author...
April 14, 2020
Simple and smooth
I’ve been reading a lot about options and even paid for mentor ship. However I started this book at 2am and finish at 530a. Even stopping to paper trade and understand. This book was worth its weight in gold.
I’ve been reading a lot about options and even paid for mentor ship. However I started this book at 2am and finish at 530a. Even stopping to paper trade and understand. This book was worth its weight in gold.
April 28, 2020
Great. Easy informational read.
Gives a semi advanced options trading strategies. Helped me understand many different things about options that even as a active trader, I did not know. Great tool to refer back to as well!
Gives a semi advanced options trading strategies. Helped me understand many different things about options that even as a active trader, I did not know. Great tool to refer back to as well!
May 13, 2020
More than the basics
Have read a few books on options and most repeat them selves but this book covers more than the basics and has some get strategies I hope to follow when I begin trading.
Have read a few books on options and most repeat them selves but this book covers more than the basics and has some get strategies I hope to follow when I begin trading.
May 17, 2020
Ok book has potential
Great tools and analysis are prepared however doesn’t show how to nagar a trade properly, especially possibilities of assignments. Recommend quick read especially for technical analysis know how.
Great tools and analysis are prepared however doesn’t show how to nagar a trade properly, especially possibilities of assignments. Recommend quick read especially for technical analysis know how.
May 25, 2020
Singles win ball games
I'd say the book is basic and straightforward. It doesn't claim too much, like getting a rich in a week. The other offers a solid little strategy that can be used in up and down markets
I'd say the book is basic and straightforward. It doesn't claim too much, like getting a rich in a week. The other offers a solid little strategy that can be used in up and down markets
August 12, 2020
Solid Advice
The author give solid advice on how he goes from $2,500 to $25,000 in a year through debit spread trading. He uses a few indicators which help tailor his entry positions.
The author give solid advice on how he goes from $2,500 to $25,000 in a year through debit spread trading. He uses a few indicators which help tailor his entry positions.
August 22, 2020
Great information
Great information I plan on using in my trades. Highly recommended for beginners and traders with a few years experience on strategies to use and indicators to try out
Great information I plan on using in my trades. Highly recommended for beginners and traders with a few years experience on strategies to use and indicators to try out
October 25, 2020
Beginner friendly
Straight to the point, easy to understand options trading strategies. Good for anyone who is just starting out and is looking for more insight about options trading.
Straight to the point, easy to understand options trading strategies. Good for anyone who is just starting out and is looking for more insight about options trading.
November 5, 2020
Great book
The strategies in these books are always Outrageous but in this book it was very conservative realistic detailed and spot on. I’m a try some of the strategies tomorrow I enjoyed it
The strategies in these books are always Outrageous but in this book it was very conservative realistic detailed and spot on. I’m a try some of the strategies tomorrow I enjoyed it
December 13, 2019
Good book without waste
Clearly details a sound options strategy, without unnecessary fluff to artificially lengthen the book. looking forward to testing it out.
Clearly details a sound options strategy, without unnecessary fluff to artificially lengthen the book. looking forward to testing it out.
December 27, 2019
Maany examples
Author included many examples for me to learn in depth. Thanks for clear and clean techniques. I would like try running same method.
Author included many examples for me to learn in depth. Thanks for clear and clean techniques. I would like try running same method.
January 31, 2020
Good book.
One of the most interesting books I read on spreads. Really informative and easy to follow. I recommend this book.
One of the most interesting books I read on spreads. Really informative and easy to follow. I recommend this book.
February 23, 2020
Interesting read
Overall an interesting read, practical and nice to have realistic examples provided. Very often this type of content is not provided.
Overall an interesting read, practical and nice to have realistic examples provided. Very often this type of content is not provided.
March 24, 2020
Good book
Great read, short and to the point. Explains the different strategy extremely well amx easily even for new traders. I am glad i read it
Great read, short and to the point. Explains the different strategy extremely well amx easily even for new traders. I am glad i read it
April 7, 2020
Informative
Learned a lot about how to approach options trading( most importantly spread options ). Thank you for writing this book. Wish if grammatical errors could be improved.
Learned a lot about how to approach options trading( most importantly spread options ). Thank you for writing this book. Wish if grammatical errors could be improved.
April 12, 2020
Good basic information
Good information to start your own system trading. Makes logical sense on how he uses options and charts to make money
Good information to start your own system trading. Makes logical sense on how he uses options and charts to make money
Displaying 1 - 30 of 41 reviews