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Using Options in Trend Continuation Strategies
Specs: 33 mins, 26 secs | 15.3 MB
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AJ Brown is a full-time options trader in his late 30's who first investigated trading after a financial planner churned his account with numerous transactions and had very little to show for it except a big commissions bill. Here we talk about how he uses option spread strategies to capitalize on what he calls "trend continuation after a burp." We discuss the types of options he buys and sells, what expiration month he uses and how he decides what strike prices to buy and sell. We then talk about the things he uses for confirmation of his "time to trade" moment - a specific crossover of moving averages and specific numbers on both Williams % R and slow stochastics. We then discuss why he focuses exclusively on options as his trading vehicle of choice and how he determines what stocks and options go on his watch list.

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Using Options in Trend Continuation Strategies


TraderInterviews.com: Hello everybody, welcome back to TraderInterviews.com. Thanks very much for joining us on the show again today. We're going to be speaking with A.J. Brown. He's an options trader. He is going to talk to us about how he got started in trading options, and some strategies maybe that he uses to find opportunities in the markets everyday, so, A.J., thanks very much for joining us on the show.

AJ Brown: Hey, I really appreciate you having me, thank you.

TraderInterviews.com: Well, talk about how you got started in the business. What led you down the road to trading options?

AJ Brown: Well, to give you a quick short answer, the thing that led me into taking control of my own trading practice was an experience with a financial planner that kind of did me wrong. Basically, what I had done is I had been groomed to come up through, I guess, the way that society gets people prepared for a career, and next thing you know, I wound up as an engineer after graduating through college at a top Silicon Valley computer company, and if I told the name, it would be something very familiar to you. And as most engineers do during their day, they hang around the water cooler, and that's where I found myself right out of college hanging around the water cooler. And we were talking about what to do with our paycheck, how to invest it, and we were talking about our different financial planners. Well, that was both kind of a godsend and something that was a little bit on the evil side, and that's just because I learned right away that financial planners may not have your best interest in mind. For my particular case, I was brought in when I first had some money to invest. I was brought into a big conference room. A gentleman with a three-piece suit that maybe after the three or four years that I was working with him maybe I saw twice. He came in to this big kind of...

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