Stock Option Trading Up By 35% as Investors Move Out of Real Estate

The volume of stock option trading continues to increase as investors move funds from ever declining real estate market, into equities. Research has shown that stock option trading can provide returns that exceed market averages.

Ruidoso, NM (PRWEB) May 7, 2007 -- "We have yet another record breaking month the use of stock options," 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 May's volume was up 35% over the previous year."

Investors continue to shift from the underperforming real estate market back into equities resulting in the market hitting 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 updated 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 updated a previously statistically validated method.

Used correctly, stock options can increase the trade returns while limiting loss to the premium paid for the option. Although options aren't available on every stock, the number of options that are available continue to increase as they become more popular.

"We've just updated the results through 2006," said London. "We also discovered a second approach that proved to be even more effective than the first one. And feedback from other investors using these methods 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've now incorporated the second approach and have all results through 2006. Using both methods combined produced $137,260 in total profits for 2005 and 2006," said London.

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