volatility you can truly see where the rubber meets the road.

#2: Market Volatility Is Your Friend

The most important trend for options traders is volatility — the splashing in the pool, if you will. Yes, volatility — the very thing that many long stock investors fear — is exactly what we thrive upon!

Volatility can happen when a stock receives an analyst upgrade/downgrade or when a major hedge fund or institutional trading group decides to pile into/out of a stock, which oftentimes leads many individual traders to follow suit.

The trick here is to be positioned before such a move takes place, because the payoff can be incredible when it happens! Yes, the ride may be a little quicker than you're accustomed to with straight stock investing, but if you're ready for the ride of your life, sign up for your risk-free subscription to my Fast Options Profits trading service, and you’ll be perfectly positioned to ride any volatility the stock market throws your way.

#3: Look for Momentum

Boring stocks are for buy-and-hold investors. When you're buying options, you want stocks with some serious 'get up and go!

In fact, I select the stocks with the most momentum — to the upside or downside; it doesn't matter, just as long as they're on the move. Then I pour over their option chains. If the options look overvalued (that is, they don't have much room in them to make a move), I immediately disqualify them from my short list of potential trades to recommend to my Fast Options Profits subscribers. Unless there's that magical combination of a low price and big potential movement, I'm not interested!

One Trade to Get You Started

You may be wondering what stocks I'm looking at, at any given time. All of them, really, but I give special emphasis to those that are breaking out of tight trading ranges.

 If a stock has seemingly been stuck for a while but is starting to climb to new levels, it's worth a second or even a third glance from me. One that I just recommended to my Fast Options Profits subscribers is Fairchild Semiconductor (FCS). FCS rallied strongly off of a “saucer bottom,” and then pulled back to support at its 50-day moving average. I expect it to bounce higher if the market keeps its act together and continues to rally.

I'm the first to admit that the road to big wealth is not easy. If it were, we'd all live like the Rockefellers! But with options trading, you’ll have an additional bullet in your gun arsenal to make more money even in hard times. Once you learn, you’ll realize, it’s really it's not that hard!

Free up your investing capital and your peace of mind with a trial subscription to Ken Trester's options trading service, Fast Options Profits. With two trade recommendations every week that you can get into for less than $2 apiece, Ken aims to take the stress and the guesswork out of options trading. Start your RISK-FREE trial subscription to Ken Trester's Fast Options Profits today!