Thanks Greg, and I did a little pre planning last week because I decided to keep my call positions longer and not sell for a loss just yet, and I also added some hedge positions with PUTS so that if the market continues to go up I sell CALLS and make $$$, and if the market pulls back and goes down I will sell PUTS and also make $$$. Thanks for the update and I'm looking forward to another EXCITING WEEK!!!
William, to sell calls and puts don't you have to have that $ equivalent of 100 shares of underlying per sell of each contract? if so, this strategy is way down the line for me as i am unable to do this as i'm just starting out. i do realize I can do credit spreads, but that seems like tons of money to put in for a fractional gain...?
If I buy a PUT on a stock its because it has reached a high point and usually will pullback after reaching a high, and I don't have a CALL on the other side. I don't play CALLS and PUTS on the same stock at the same time, and when the stock drops down then I will buy a CALL on that stock and ride it up. It makes no sense to buy a CALL and PUT on the same stock at the same time because they just cancel each other out. I have CALLS on stocks I expect to go up, and I have PUTS on stocks I expect to go down, but I never have a CALL and PUT on the same stock at the same time.
You are talking about credit spreads and yes you have to cash in your account to cover the call or put that you sell, what I doing is buying a covered call and selling the call for a profit I hope, and I'm not selling the call upfront and collecting the money from the sale. I haven't ventured into credit spreads as of yet and I bought Greg's book to learn how to trade them.
Sassy, these are short term trades that I hope to sell in a few days or few weeks, and on stocks I know will go up and go down in a certain range because I watch them very close, and I some cases I will buy a CALL when its down, and Ride it up and sell for a profit, and turn right around and buy a PUT and ride it down for a day or two and sell for a profit. I usually have a lot more CALLS than puts when we are in a bull market, but I also have a few PUTS as well. These are not the same as very long term long 2 year out trades that you pick a price target and put it away and hope it hits the price target way down the road.
how do you determine if something is going to down or up? your strategy makes sense, but i keep messing up. i may sell everything today and start fresh. everything in red for too many months.
I have certain stocks on my watchlist and I track their movement so I'm very familiar with the direction they might move. I also price certain stock options through the week and watch the price so I will see when its a good opportunity to buy that option, and after a while you will become very familiar with them, and most of these stocks I trade over and over and try not to have more stocks on my watchlist than I can keep up with.
No, I only buy a covered calls and puts, and I have to pay the premium, and then I sell the call or put for a profit when I'm happy with the options gains, and sometimes you will end up selling for a loss if the stock moves away from you and never moves back in your favor so you sell for a loss before the option expires, but try to keep this to a very minimum. If you sell somebody a call or put yo get to collect the premium and if you win you get to keep it, but if you lose at expiration and If they exercise the option you owe the 100 shares of that stock at the agreed option strike price, or if they sell the option then you have to pay them for the failed option, and that is why you are required to have a margins account or have the cash on hand to cover your deal.
Anybody that wants to learn how to Option trade with Gregory Mannarino watch the video below.
https://www.youtube.com/watch?v=uVtmFrqDrDk
Welcome to the pride!! Don't forget to pay it forward!
Thank you Greg for all you do!!
Stellar job on this analysis Greg! Thank you!
I'm looking for for this week Market and what's September can bring to the market !! let's see
Thanks Greg, and I did a little pre planning last week because I decided to keep my call positions longer and not sell for a loss just yet, and I also added some hedge positions with PUTS so that if the market continues to go up I sell CALLS and make $$$, and if the market pulls back and goes down I will sell PUTS and also make $$$. Thanks for the update and I'm looking forward to another EXCITING WEEK!!!
William, to sell calls and puts don't you have to have that $ equivalent of 100 shares of underlying per sell of each contract? if so, this strategy is way down the line for me as i am unable to do this as i'm just starting out. i do realize I can do credit spreads, but that seems like tons of money to put in for a fractional gain...?
If I buy a PUT on a stock its because it has reached a high point and usually will pullback after reaching a high, and I don't have a CALL on the other side. I don't play CALLS and PUTS on the same stock at the same time, and when the stock drops down then I will buy a CALL on that stock and ride it up. It makes no sense to buy a CALL and PUT on the same stock at the same time because they just cancel each other out. I have CALLS on stocks I expect to go up, and I have PUTS on stocks I expect to go down, but I never have a CALL and PUT on the same stock at the same time.
ok thanks. but don't you need that cash equiv in your account to be able to sell one? or do you do uncovered?
You are talking about credit spreads and yes you have to cash in your account to cover the call or put that you sell, what I doing is buying a covered call and selling the call for a profit I hope, and I'm not selling the call upfront and collecting the money from the sale. I haven't ventured into credit spreads as of yet and I bought Greg's book to learn how to trade them.
Sassy, these are short term trades that I hope to sell in a few days or few weeks, and on stocks I know will go up and go down in a certain range because I watch them very close, and I some cases I will buy a CALL when its down, and Ride it up and sell for a profit, and turn right around and buy a PUT and ride it down for a day or two and sell for a profit. I usually have a lot more CALLS than puts when we are in a bull market, but I also have a few PUTS as well. These are not the same as very long term long 2 year out trades that you pick a price target and put it away and hope it hits the price target way down the road.
how do you determine if something is going to down or up? your strategy makes sense, but i keep messing up. i may sell everything today and start fresh. everything in red for too many months.
I have certain stocks on my watchlist and I track their movement so I'm very familiar with the direction they might move. I also price certain stock options through the week and watch the price so I will see when its a good opportunity to buy that option, and after a while you will become very familiar with them, and most of these stocks I trade over and over and try not to have more stocks on my watchlist than I can keep up with.
i also bought that book, but still need to watch some youtube tutorials to get more information.
thanks! but do you mean "selling" a covered call (not buying)?
also, if I sell a contract and the person I sold to sells back and doesn't exercise and it doesn't expire, do I still collect the premium?
No, I only buy a covered calls and puts, and I have to pay the premium, and then I sell the call or put for a profit when I'm happy with the options gains, and sometimes you will end up selling for a loss if the stock moves away from you and never moves back in your favor so you sell for a loss before the option expires, but try to keep this to a very minimum. If you sell somebody a call or put yo get to collect the premium and if you win you get to keep it, but if you lose at expiration and If they exercise the option you owe the 100 shares of that stock at the agreed option strike price, or if they sell the option then you have to pay them for the failed option, and that is why you are required to have a margins account or have the cash on hand to cover your deal.
good idea