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Inteview
with Options Expert Dale Wheatly
By Dale Wheatley
TW: What is your background?
Dale: I was a Telephone Contractor for many years, but needed an investment
vehicle that could travel with me, one that was not too complex. I studied all
about different investments such as real estate, buying discount mortgages, tax
certificates, etc as well as the stock market, but none of those things seemed
simple enough for me to control myself without a great investment of time and
money. I simply did not have much time to devote to those things since I worked
100 hour weeks and moved around the country doing storm reconstruction for
telephone companies, etc. I accidently happened across options in the mid 1980’s
and I immediately saw the advantage of the limited risk-vs-potential returns.
TW: How did you get started in trading options?
Dale: I began trading options in the mid 1980’s. I read every book I could find
about options and derivatives, as well as John Murphy’s books on Inter-Market
analysis. Later, I discovered Fundamental Analysis and Investor’s Daily and
thought there was SOMETHING to their type of approach by ranking stocks by
relative strength, etc. However, even with these insightful approaches,
something KEY was missing! HOW DO I KNOW WHEN TO BUY OPTIONS? I continued my
searching until I discovered TECHNICAL ANALYSIS, using charts and patterns to
know WHEN to buy. It took several years of losing many $$ to finally discover an
underlying pattern and single indicator, the MACD, that would CONSISTENTLY and
ACCURATELY forecast the underlying equity direction change or REVERSAL. I tested
the discovery against all of my prior trades, losers and winners, and, to my
amazement, I had found the KEY to at least ONE pattern that I could search for
and could be relatively sure of success. After many more years and sharing my
discovery with other traders, I learned by answering questions others had asked
me that I did not have good answers for, initially, but soon found credible
answers. Those answers and more questions led to my TIME FRAME ANALYSIS in
addition to just an MACD divergence.
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