IMPORTANT! Lions Plays On Options.
From Greg M
Lions.. I am a NET SELLER of options- most of you already know that, that is I allow time decay to work for me, not against me!
I just sold July 30 2021, $120 puts on JPM- naked. As of the time of this post, this trade has a 99.99% chance of allowing me to keep ALL of the premium. How do I know this? You can use an options calculator which you can get online for free. Also, most trading platforms offer one.
If you look at my current positions, LINK: https://traderschoice.net/about-traders-choice/ You will see several ticker symbols of which I am a net seller of options..
99% of my trades involve me selling options, NOT buying them. Buying options is a tough gig for anyone.. high potential for losses.
If you have yet to pick up a copy of my book, A (NOT) SO RANDOM WALK ON WALL STREET, I cover selling options/being a net seller of options… I would STRONGLY advise you to pick up a copy right now- its an eBook and you will get it instantly. Click HERE: https://www.lulu.com/en/us/shop/gregory-mannarino/a-not-so-random-walk-on-wall-street/ebook/product-n66ymz.html?page=1&pageSize=4
GM
Greg, help me understand this please. It would seem to make about $700 on this trade you would have to sell 100 contracts and have the capital of $1.2M to buy the underlying stock if the price goes below 120 by strike date. Do I have that right?
Cool so you're going to make a whopping $10. Really ripping the face off the market here, boss