Lions.. How Can I Possibly Make This Simpler For You?
Lions…. below is an email I just got..
Greg, would you consider mentioning specifically which dates/strike puts you are selling in your trades? It would be great if you would include those in the emails touting your trades each time.
HOW CAN I POSSIBLY MAKE THIS ANY SIMPLER FOR YOU?
I suggest selling puts as close to 20% OTM as you can get and as close to 2 weeks out as you can get… this is VERY simple stuff. Once the trade you are in ends, you allow the option to expire, you rotate back into another position.
If you are new to trading PAPER TRADE FIRST for several months.
*BELOW IS EXACTLY HOW I SUGGEST PLAYING A TRADE.
ALL MY LATEST STOCK PICKS ARE POSTED ON MY WEBSITE- CLICK HERE: https://traderschoice.net/about-traders-choice/
I STRONGLY advise you to learn how to SELL puts/options and set up credit spreads. There is MUCH more to successful trading than just buying calls and or puts.
When you BUY an option, time decay immediately starts working against you. When you SELL an option, time decay immediately begins working FOR YOU…
3 ways to play this.
#1. You can buy just ITM calls which expire out 6 months. This strategy carries the most risk, but also has the highest profit potential. -I WOULD DISCOURAGE YOU FROM UTILIZING THIS STRATEGY! A LOT OF RISK HERE. IF YOU DO CHOOSE TO BUY CALLS, CONSIDER HEDGING THEM USING ONE OF THE TWO STRATEGIES BELOW.
long Strangle
The long options strangle is an unlimited profit, limited risk strategy. This strategy is utilized when the trader/investor believes that the underlying stock will encounter high volatility in the near term. Significant gains are attainable when the underlying asset price makes an especially strong move either upwards or downwards.
To set up a long strangle strategy, the trader/investor will purchase an out-of-the-money call option and an out-of-the-money put option simultaneously, on the same underlying asset with the same expiration date.
Long Straddle
The long straddle options strategy offers unlimited profit, while limiting risk. This strategy is used when the trader/investor believes that the underlying asset will experience considerable volatility in the near term.
A long straddle strategy can be set up as follows. The investor/trader simultaneously purchases a call and put option on the same underlying asset with the same strike price and expiration date.
***AGAIN I DO NOT RECOMMEND BUYING OPTIONS UNLESS YOU ARE EXCEPTIONALLY SKILLED AT DOING SO.
#2. A BETTER STRATEGY IS THIS: Sell WAY OUT OF THE MONEY, at least 20% OTM, puts which expire out 2 weeks. This strategy carries less risk.
#3. THE BEST STRATEGY IS THIS: The least risky strategy is to set up a credit spread- and there are many ways to do this easily- I explain how to set up credit spreads in my book, *** link below.
I PERSONALLY LIKE TO UTILIZE EITHER SELLING PUTS, OR SETTING UP CREDIT SPREADS TO TRADE- 99% OF THE TIME I AM A NET SELLER OF OPTIONS WHEN I TRADE.
*** I cover each of the above strategies/how to set them up plus MUCH MORE in my book A (NOT) So Random Walk On Wall Street.
GM
Trading involves financial risk.
Greg, love your work, but don't love when you gaslight. You know exactly why BB King asked, and most of us know the answer, and why you won't answer... you're probably selling options for pennies, but can afford to risk a lot more if the option dips below the strike price than most of us. BB King, here is your answer... XOM is $55.61 now, selling a Sept 24th $45 put (19% of $55.61 and 2-weeks out) would net you $4.00 per option (before fees), but put you on the hook for roughly $4,500.00 if the option dips below $45 at closing and you don't buy to close. If you sold 10 options, you could net $40.00, but would need the $45K in your account, otherwise most brokerage firms won't allow the trade. Unless I'm corrected, you need at least $100K in your account, and put all at risk, to make any real money. Greg, if you're clear on what you're trading, you may lose some subs since they can't play the same game, but you would have a better quality sub list, and it would grow from there, with the right people.
Greg, quit thinking like a trump-voter. This is what they said....
"Greg, would you consider mentioning specifically which dates/strike puts you are selling in your trades? It would be great if you would include those in the emails touting your trades each time."
So....give them what they asked for. <<<would you consider mentioning specifically which dates/strike puts you are selling in your trades?>>>
Mention SPECIFICALLY which dates/strike puts YOU are selling in YOUR trades. They don't know if they should have a $5.00 wide spread $10 wide spread or whatever. If YOU tell them EXACTLY what EXACT options YOU are selling then they don't have to engage in any guesswork. And yes, I understand THEY may NOT be able to afford the options YOU are selling, but hey...you don't know their budget and are therefore NOT liable for them getting into heavy positions too large for their account size. Maybe they ARE able to go in as heavy as you do for their account size. Right now you have to assume they have the cash to cover their arse. Just make sure you have disclaimers everywhere otherwise you might have another "Roundhead" on your hands trolling you all over YouTube. Hahahahahahahahahahaaaaaaaaa! Eeeeeeeeeeeeeeheheheheheheeee! 😃 🤣 😂
Give...them....what....they.....asked.....fooooooor Gregory Mannarino.