no actually when the stock price was at that price. when this went out it was 211. i did jan calls - couldn't afford june and i couldn't afford when it was 211.
Anyone who can explain to a European trader with no clue about options, how Greg closes some positions with 10%gain, like the JNJ yesterday, when the stocks only go up like 1-2%?
more specifically, with this trade, if you bought $10,000 of MSFT stock you could purchase 47 shares. BUT, if you purchase the options, the same $10,000 you could purchase 5 contracts which represent 500 shares. Each options contract represents 100 shares.
Big thanks for all responses. European brokers mostly don't offer such a tool, only simple leverage x5 or x10, which without a pretty tight stop loss is suicide. Thanks
"Buying options contracts allows you to control a greater amount of the underlying security, such as stocks, than you could by actually trading the stocks themselves. Put simply, if you had a certain amount of capital to invest then you can create the potential for far higher profits through buying options than you could through buying stocks..."
From Optiontradingpedia.com :
OPTIONS LEVERAGE =
(DELTA EQUIVALENT STOCK PRICE - OPTION PRICE) / OPTION PRICE
Following up from our above example: XYZ shares is trading at $50 and its $50 strike price call options has a delta value of 0.5:
Options Leverage = ([$50 x 0.5] - $2) / $2 = 11.5 times
Greg, have you ever considered using telegram for your trade alerts?
Yeah, email is slow. Telegram notificaitons would work a lot better.
in
I waited and ended up getting in @ 21.0!
same
Inn ;-)
I'm in Greg, thanks
Thanks Greg, Good call.
Seems this one is a miss ...
i got in at 208.70
20.87 rather ...
no actually when the stock price was at that price. when this went out it was 211. i did jan calls - couldn't afford june and i couldn't afford when it was 211.
You gotta realize how long this position is. The long call options don't always end up like the JPM blessing we had. It's only been 3 hours
I’m new here. Greg said in an interview that these are only day trades. If this option is to be kept after closing today, there’s no issue then.
it seems so....i'm glad I waited.
That's a lot of premium baggage to overcome. I might pass.
If your going to ride the airplane, you have to buy a ticket.
same here too expensive for me..
probably for the best, it's dropped $3 in price since this call
Anyone who can explain to a European trader with no clue about options, how Greg closes some positions with 10%gain, like the JNJ yesterday, when the stocks only go up like 1-2%?
High leverage?
Thanks
more specifically, with this trade, if you bought $10,000 of MSFT stock you could purchase 47 shares. BUT, if you purchase the options, the same $10,000 you could purchase 5 contracts which represent 500 shares. Each options contract represents 100 shares.
Thanks Chris!
Yeah since CFDs were banned here due to the 08'-09' financial crisis, option contracts have become all the rage in the trading community.
Big thanks for all responses. European brokers mostly don't offer such a tool, only simple leverage x5 or x10, which without a pretty tight stop loss is suicide. Thanks
See above comment.
from optionstrading web site...
"Buying options contracts allows you to control a greater amount of the underlying security, such as stocks, than you could by actually trading the stocks themselves. Put simply, if you had a certain amount of capital to invest then you can create the potential for far higher profits through buying options than you could through buying stocks..."
He uses options which is a leveraged investment.
Thanks!