Hi Greg, I am a newbie in this. Trying to learn as fast as I can.
I own 4 contracts on WMT Jun 18 2021 135 Call and averaging at $1120 each. As a sample idea how can I sell puts on those so that I mitigate current liability of 2K
Its called a call spread. Need to write calls against...NOT PUTS. You are spending way too much money for not knowing. If you write puts you are increasing your exposure to the underline.
You are right Paul, I had followed a lead by Greg and bought 1 call in Nov for $1600 that was the going price in Nov. Then recently tried to inflate out of its tailspin slide with 3 more and now as I am watching the market it seems that WMT will keep sliding.
Your not, I do a lot of writing at night to prep for the next trading day. Based on your info you bought 4 Jun 135 calls. By establishing a call spread you will limit your downside. It's hard to give you examples in a comment section. What I can tell you instead of listening to Greg, please educate yourself. Options are the most complex investment instrument available to the public. They are a lure for new investors because of the leverage they provide. You can be right in the direction of the stock, but if your timing is off you can still lose due to time decay.
Greg does not provide education. He wants to sell a book. My buddy lost $12,000 listening to this guy. I'm on here just to help as much as I can. Look at today. I bet 5/1 his followers GOT roasted today. The bible for options trading is a book called: Options as a Strategic Investment, by Lawerence McMillian. He was my first boss. Think of this book as the bible. Read once ALWAYS refer back to it.
I have nothing to gain. Every bull market breeds guys like Greg. If you seem skeptical, just take your time and read his followers' comments.
thank you so very much. I hope I'd be able to finish it before all collapses :-), Do you provide comments somewhere or analysis? Is there any way I can follow you?
June 18 135 call is now worth less that $6. Some people close the position when the value of the option is down 50%. It's more of a judgement call as no one knows whether the stock continues to go down or go up the next day. Keep in mind that when you buy call or put, it is very easy to have a total lost.
Before you enter the position, determine at what percentage you will take profits and at what percentage lost you will exit the trade. If you use buy the dip strategy, stay small so that you can buy the dip and extend time. Use very small percentage of your total capital in each position so that consecutive loses won't wipe you out.
Bruce- If I am reading you correctly, it seems that you are opening new positions instead of adding to the original one. Or are you opening new positions in different stock options. Thanks!
It depends on the amount of time that I have left in the position. If the position has less than 3 months left, I would add to the position at the same strike but at a further dated expiration. If I have a spread, I would add to the position by widening the spread. They give me a better chance of profit but I also add capital/risk to the position.
Adding risk to a position can be very bad if the position continuously goes against you. Make sure you are bullish for the long term.
Thank you, Greggory, for who you are, and for all you do! You are truly a man of integrity and compassion for the little guy. God bless you, your family, and all those you love and hold dear. Blessings abound!
FYI
M2 reporting was just discontinued by the Fed. Right before it goes full hockey stick vertical.
They are changing the formula for how they report it to make it look not so horrible.
// now monthly?? //
>>> https://twitter.com/Galactic_Trader/status/1364933745162207236
Things are about to get interesting! Hahahahahahahaaaaaa!
check silver miners. there time is coming >>> /very/ soon
I have about 78 shares of ASM miner.
tomorrow Biden resigns and Trump takes office again :-)))
I got free kool-aide! Anyone need kool-aide?
indeed
Hi gm,
Took action today via SPxs x3 sp 500.
Made 2%,. However most lions are getting their " faces ripped off" on your recos. I'm a lion and lost a ton of $ today.
Earlier decisive sell signal on your part could have saved us all $$$.
Kinda trapped.
todays bottom reached.
Hi Greg, I am a newbie in this. Trying to learn as fast as I can.
I own 4 contracts on WMT Jun 18 2021 135 Call and averaging at $1120 each. As a sample idea how can I sell puts on those so that I mitigate current liability of 2K
Its called a call spread. Need to write calls against...NOT PUTS. You are spending way too much money for not knowing. If you write puts you are increasing your exposure to the underline.
Thank you for taking the time to respond and offer an advice Paul I really appreciate it being a part of this amazing pride of traders :-)
Hey man, thank you for your kind words
You are right Paul, I had followed a lead by Greg and bought 1 call in Nov for $1600 that was the going price in Nov. Then recently tried to inflate out of its tailspin slide with 3 more and now as I am watching the market it seems that WMT will keep sliding.
Hey Buddy, I DO NOT WANT to come off mean. I just want people who are new to be very careful. Please chime in if you have questions. Be safe!!!!
no worries. I know I am super green and will take any schooling I can get :-)
In my case you would write calls, is it possible to give me an example? I hope I am not taking too much of your time and being too forward
Your not, I do a lot of writing at night to prep for the next trading day. Based on your info you bought 4 Jun 135 calls. By establishing a call spread you will limit your downside. It's hard to give you examples in a comment section. What I can tell you instead of listening to Greg, please educate yourself. Options are the most complex investment instrument available to the public. They are a lure for new investors because of the leverage they provide. You can be right in the direction of the stock, but if your timing is off you can still lose due to time decay.
Greg does not provide education. He wants to sell a book. My buddy lost $12,000 listening to this guy. I'm on here just to help as much as I can. Look at today. I bet 5/1 his followers GOT roasted today. The bible for options trading is a book called: Options as a Strategic Investment, by Lawerence McMillian. He was my first boss. Think of this book as the bible. Read once ALWAYS refer back to it.
I have nothing to gain. Every bull market breeds guys like Greg. If you seem skeptical, just take your time and read his followers' comments.
Be safe my friend.
thank you so very much. I hope I'd be able to finish it before all collapses :-), Do you provide comments somewhere or analysis? Is there any way I can follow you?
Stay with 1 contract at a time while you are learning options preferably in small popular stocks.
Do not sell options until you know what can happen when the strike go into the money.
The contracts are dated June 18 th but In the above mentioned situation what would your strategy be Bruce?
June 18 135 call is now worth less that $6. Some people close the position when the value of the option is down 50%. It's more of a judgement call as no one knows whether the stock continues to go down or go up the next day. Keep in mind that when you buy call or put, it is very easy to have a total lost.
Before you enter the position, determine at what percentage you will take profits and at what percentage lost you will exit the trade. If you use buy the dip strategy, stay small so that you can buy the dip and extend time. Use very small percentage of your total capital in each position so that consecutive loses won't wipe you out.
Bruce- If I am reading you correctly, it seems that you are opening new positions instead of adding to the original one. Or are you opening new positions in different stock options. Thanks!
It depends on the amount of time that I have left in the position. If the position has less than 3 months left, I would add to the position at the same strike but at a further dated expiration. If I have a spread, I would add to the position by widening the spread. They give me a better chance of profit but I also add capital/risk to the position.
Adding risk to a position can be very bad if the position continuously goes against you. Make sure you are bullish for the long term.
Thanks much Bruce. Sounds like you really got it down to a science!
They are technically new positions but I am also buying the dip.
thank you Bruce! I really appreciate you taking the time like Paul and teaching me the ropes here
Thank you Bruce!
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Thank you, Greggory, for who you are, and for all you do! You are truly a man of integrity and compassion for the little guy. God bless you, your family, and all those you love and hold dear. Blessings abound!
🙏🏼⚓❤
Guys you should really download the app OptionStrat, it's amazing for coming up with options ideas.
Who is better then you? NO BODY!!!
Nobody Pete
Thanks Greg !
Thank you!
Thank you Gregory! Appreciate it.