FAQ

How it works

Gap Trading Strategy………..$1499.00” (learn more)

What are rolling stocks

What are the benefits of MyRS

How long have you been in business

What if I don’t find what I’m looking for on your site

How do I contact MyRS during business hours

Are rolling stocks commonly found in lower price ranges

Do lower priced stocks roll faster

Why buy options on rolling stocks

What are covered calls

What is technical analysis

What is stochastics

What is Moving Average Convergence Divergence (MACD)

How it works

Stocks that exhibit a rolling pattern are known as rolling stocks, rollers or channeling stocks. These stocks should be bought at their cyclic low and sold at their high for profit. On our site when you click on the button , you will be taken to a page which lists the stocks that are rolling. For each rolling stock listed on the site, there is a graph and a table. An example of a table is

LNCE – Lance Inc
Floor (Low) $19.80
Ceiling (High) $22
Duration 90 Days
52 Week Range $17.05 to $25.18
Avg. Volume 182,467
Market Cap $742.95 Million
PE 28.75

The objective is to buy the stock close to the Floor price and sell at the Ceiling price or as close to the ceiling as possible. Duration: This is the length of time that the stock has been rolling. 52 Week Range: This is the price range of the stock price over a 52 week period. Avg. Volume: This is the average amount of shares that trade each day. Market Cap: This market value of the company – It is the number of shares multiplied by the price of each share. PE: The PE ratio is the price of the stock divided by the earnings per share of the stock.

What is the Gap Trading Strategy?

Using empirical data over a period of 10 months, an extensive study was performed which examined stocks which gapped and their preceding price patterns. The study examined arbitrage trading of a mispriced stock when the mispricing is represented by a gap in the stock price. There is a gap threshold (inconsistencies in asset price) beyond which stock prices are expected to rebound and converge to some normal trading range. The optimal gap threshold and the probability of making a profit was determined. The determination of the threshold was based on empirical data. Once the price threshold is reached, the probability of making a profit was determined by applying “Six Sigma type” analysis to the data collected. The probability of making a profit increases linearly with the size of the gap within a defined range. The optimal trading strategy calls for investing immediately when the gap reaches the limits of the threshold. This investment strategy is less risky in the short term. The results are consistent with the belief that stock prices tend to converge to a normal trading range when stock prices suddenly deviate from a long term trend.

The strategy is based on stocks that gap. Each day there are several stocks that show a gap when the market opens. Our job is to capitalize on these mispriced stocks and gain a profit in as little as 15 minutes to 1 hour. Please note that this is a day trading strategy and is not suitable to all traders.

By buying this strategy here is what you get from us The Preparation
A complete tutorial on how the strategy works
A coach to walk you through the strategy
The Data

Each day you will get an e-mail of at least 7 stocks (average) that will be expected to gap- down when the market opens. If the stocks gap-down, and they gap down beyond the threshold set by the strategy – then we will direct you on what action to take.

By following our trading plan, you can see the following profits…….

  • 108% gains in 3 weeks
  • 288% gains in 3 weeks.
  • 312% gains in 12 days.
  • 151% gains in 3 weeks
  • 466% gains in 20 days.

The Trading Plan

The trading plan tells you when to get into a trade and give you clear instructions when it’s time to sell 6 to 7 Big Money Trades each week, on average.
Profit Updates and Alerts — we don’t just say, “Buy,” and then leave you to your own devices. We track each trade closely and give you clear instructions when it’s time to sell.

Risk-Cutting Strategies that help you avoid the big mistakes that kill other traders.

Plus more money-doublers in one year than most investors enjoy in a lifetime

If you don’t love it, we don’t want your money

As we looked at other trading strategies, we just knew we could do better for you.

And if we do better for you, you’ll stay with us, and that’ll put a few extra bucks in our pockets. So we’re eager to bring you on board on both accounts.

Give Gap Trading Strategy a fair try — invest what you’re comfortable with as you “feel us out.” Or even track our recommendations on paper to start if you prefer. Take a full ninety days to make up your mind whether to keep us or kick us to the curb.

If you’re not completely satisfied with our service, just let us know anytime in that period — even the very last day — and we’ll promptly refund every cent you paid.

So you see, you truly risk nothing by taking a look. Accept your half-price savings by going here now

Please Note: The Gap Trading Strategy is a day trading strategy and may not be suitable for all traders

What are rolling stocks?

Rolling stocks, sometimes called Bouncing stocks or Channeling stocks, are stocks that oscillate between a high price point (ceiling) and a low point (the floor) for a specific time period. Our simple but unique technique identifies these stocks. You choose your price range, rolling stock criteria and we do the rest. With our approach you have the potential to make hundreds of thousands or even millions of dollars.

What are the benefits of signing up with MyRS?

MyRS provides a list of rolling stocks that is can be sorted by time rolling and by percent variance over that time. We tell you how long a stock has been rolling and the percentage it has moved off its base for a period of time. A BIG plus to MyRS is our options advisor section. We give a weekly update of our opinion on where to make money in the options market.

When did you open / how long have you been in business?

We were founded in February of 2005, and opened our web site on October 31.

What if I don’t find what I am looking for on your site?

E-mail us and we’ll work with you to find the answers…

How do I contact optionsXpress during business hours?

You may call us at (888) xxx-xxxx, or direct at (216) 201-0956. You may e-mail us by using this form

Are rolling stocks commonly found in the lower price ranges?

Rolling stocks can occur in any price range and in any market environment.

Do lower price stocks roll faster?

Yes, lower priced stocks tend to roll faster.

Why buy options on rolling stocks

Options provide you with more leverage. If a stock trades at $40, it would take $20,000 to buy 500 shares. Using options, you can buy ten 40 call contracts at $7. Now, for just $7,000 (10 contracts x $7 x 100 shares per contract), the investor owns the rights to buy 1,000 shares of stock at $40, any time before the call options expire. If the stock price is $60 at expiration, the options will be worth $20 each ($60 – $40) or $20,000 (10 contracts x $20 x 100). The investor will have a profit of $13,000 on a $7,000 investment.

In contrast, the investor who paid $40 for 500 shares spent $20,000 to make $10,000 ($60 – $40 x 500 shares). That’s the power of leverage. However, the risks are equally high. If the stock doesn’t move, the investor who paid $7,000 for the $40 calls will lose the entire investment. Likewise, the investors who bought the stock will have lost nothing because they still own the stock. As rolling stock traders, we have a fairly good idea about where the stock will go in the near future – this fact mitigates some of the risks.

What are covered calls

An options strategy whereby an investor holds a long position in an asset and writes (sells) call options on that same asset in an attempt to generate increased income from the asset. This is often employed when an investor has a short-term neutral view on the asset and for this reason hold the asset long and simultaneously have a short position via the option to generate income from the option premium.

This is also known as a “buy-write”.

For example, let’s say that you own shares of the XYZ and like its long-term prospects as well as its share price but feel in the shorter term the stock will likely trade relatively flat, perhaps within a few dollars of its current price of, say, $25. If you sell a call option on XYZ for $26.00, you earn the premium from the option sale but cap your upside. One of three scenarios is going to play out:

a) XYZ shares trade flat (below the $26 strike price) – the option will expire worthless and you keep the premium from the option. In this case, by using the buy-write strategy you have successfully outperformed the stock.

b) XYZ shares fall – the option expires worthless, you keep the premium, and again you outperform the stock.

c) XYZ shares rise above $26 – the option is exercised, and your upside is capped at $26, plus the option premium. In this case, if the stock price goes higher than $26, plus the premium, your buy-write strategy has underperformed the XYZ shares.

What is technical analysis and fundamental analysis

The methods used to analyze securities and make investment decisions fall into two very broad categories: fundamental analysis and technical analysis

What is fundamental analysis

Fundamental analysis involves analyzing the characteristics of a company in order to estimate its value.

Technical analysis takes a completely different approach; it doesn’t care one bit about the “value” of a company or a commodity. Technicians (sometimes called chartists) are only interested in the price movements in the market.

Despite all the fancy and exotic tools it employs, technical analysis really just studies supply and demand in a market in an attempt to determine what direction, or trend, will continue in the future. In other words, technical analysis attempts to understand the emotions in the market by studying the market itself, as opposed to its components. If you understand the benefits and limitations of technical analysis, it can give you a new set of tools or skills that will enable you to be a better trader or investor.

What is Stochastics

The Stochastics indicator measures when a stock is oversold or underbought. (more on stochastics) (102)

What is MACD (Moving Average Convergence Divergence)

The MACD is a trend-following momentum indicator that shows the relationship between two moving averages of prices. The MACD is calculated by subtracting the 26-day exponential moving average (EMA) from the 12-day EMA. A nine-day EMA of the MACD, called the “signal line”, is then plotted on top of the MACD, functioning as a trigger for buy and sell signals.

Stochastics is a technical momentum indicator that compares a security’s closing price to its price range over a given time period. The oscillator’s sensitivity to market movements can be reduced by adjusting the time period or by taking a moving average of the result. This indicator is calculated with the following formula:

%K = 100[(C - L14)/(H14 - L14)]

C = the most recent closing price
L14 = the low of the 14 previous trading sessions
H14 = the highest price traded during the same 14-day period.

%D = 3-period moving average of %K

They are simply two different stochastics lines responding to interval lengths that you may specify. For instance in the Slow Stochastics indicator, SS(10,10) is the default but you can edit that (as I do) to SS(10,3). In that case, the %K line responds to the stochastics of an interval 3 units long while the %D responds to an interval 10 units long. Thus, the %K will alway respond to changes in trend ahead of the %D line.

I use the SS(10,3) as one of my technical triggers for bullish or bearish entries on stocks in my watchlists.

For a bullish entry, I want to see the 30dMA higher than the day before, the MACD higher than the day before and below 0, and the %K line on the SS(10,3) to be above the %D line while the %D is below 50.

For a bearish entry, I want to see the 30dMA lower than the day before, the MACD lower than the day before and above 0, and the %K line on the SS(10,3) to be below the %D line while the %D is above 50.

The MACD (Moving Average Convergence Divergence) was developed by Gerald Appel, and is used to determine the strength of a trend.

The MACD is constructed with two simple moving averages and one exponential moving average. The two moving averages, usually an 8-day and a 17-day, are compared to find the difference between the two. A smoothing factor is applied to the difference between the two moving averages by taking a 9-day moving average of the difference. The difference and the smoothed difference are then plotted as lines or a histogram (or both).

The MACD is usually displayed below the price portion of the chart. When the two lines separate from each other, the histogram (MACDH) gets larger and when they get closer to each other the histogram gets smaller and approaches the zero line. When the lines cross each other (or the histogram crosses the zero line), the trading signal for this indicator is given. At this junction, the MACD is interpreted to indicate increasing or declining price momentum.