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Industry Expert Predicts 100 Point Moves in the Stock Market May Become the Norm

San Francisco, CA (PRWEB) August 13, 2007 -- As the stock market's unpredictability increases losing becomes a much greater risk, and one that many experts think few should take. Floyd E, lead trader at OEX Options, believes that market gyrations like this could become the norm, and not the exception, making it almost impossible for anyone but astute day and option traders to make money. To combat the recent trend in trading, Floyd suggests index options trading as a safer alternative and yet still effective way to make money.

Massive moves typically do not occur more than 18 times in a year, and in the past these have been 100 point moves. Floyd E, lead trader at OEXOptions.com, comments: "When the market has 100+ moves in a day, and loses 2% of its value quickly, we've hit a level where few investors can make money. YTD in 2007 the S and P 500 has only returned .30%. Keeping money in a mattress might be better." However, rather than actually stashing your money away under your bed, Floyd presents the idea of trading cash index options.

Index option trading (http://www.oexoptions.com) can be a safe and profitable alternative to stock investing, and can be done in retirement and regular accounts. The OEX is the stock symbol for the cash index of the S and P 100 stocks. This means that the trader, unlike with most options, does not gain the right to exercise the option, but to merely "play the market" on the moves within the OEX.

For example, if a trader believes the OEX will move to 660 they would buy a call option for this, and the profits or losses would take place on the movement of the actual index. OEXOptions.com offers daily trading signals for the OEX as part of their subscription service. Each signal has clear buy/sell guidelines, and the service teaches traders how to study support and resistance lines and projects the Dow over a 21 day period. Traders have found that investing in puts and calls on the OEX can provide 20-40% returns DAILY, with over a 78% win ratio. This is a way, says Floyd at OEX, to "trade the market gyrations, and not CARE which direction the market moves".

About OEXOptions.com:

We are an OEX online stock options trading (http://www.oexoptions.com) company. Learn OEX options trading (http://www.oexoptions.com) with our exclusive OEX mentoring system. Our index options trading resource provides intraday options trading strategies on blue chip stocks.

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