This week besides being options expirations week, yesterday (17 Oct 07) also marks the opening of the Options Trading Championship 2007. It will take place over a duration of 3 days between 17 Oct 07 to 19 Oct 07, coinciding with the last three days of the options expirations week intentionally to allow us to buy cheaper options (time value going to zero).

I was there last year too. Make some silly mistakes and went home with US$200 down in my trading account. Oh yes! Participants are to use real money to compete. Unlike the CNBC Million Dollar Portfolio Challenge that was held some time back, competitor use paper money (or fictitious money). Of course there is a difference! When using paper money, you would not even blink an eye when dumping all your money even into just one single stock/option, like buying a lottery ticket. This is trading psychology.

What is the strategy to use during the championship? Earnings gaps. Full stop. No other strategy can allow one to make 200% profit in 3 days and over 1000% return in a trade. Check out last year’s champion Leong Wei Peng’s story. He turned US$2000 to US$3960 in 3 days! Want to know how to do it? I will slowly reveal the secret in my subsequent blog posts. Stay tuned! Subscribe to my rss feeds/email (see top right hand column) so that you wouldn’t miss it!