When MSFT falls, buy some more. This is why it is recommended that you have additional capital to use (dry powder) to average down...like entry you paid $5.00 per contract. Next group you paid when things dropped for like $4.50 per contract. Average cost between the two are $4.75....repeat this and the cost is averaged.
I bought more after it dropped, lowering my average cost per option. Greg said he was adding to all of his positions at one point, and I believe that's when I bought more. It's not always the right thing to do, but it worked for me in this situation.
Oh. So when you add to your positions it averages down. Now when you add to your positions, do you add for the same call or putt that you originally did? And when you do it that way, that’s the average down?
I add to the same put/call when I'm following Greg's trades if I want to average down, but I'm a noob, so take what I do with a grain of salt. Technically you could buy at a different strike price than your first one if the price drops, and you would still be averaging down in a way. You're basically betting on the stock to go back up, just getting in at a cheaper price than originally.
Other things to consider when averaging down are how big of a position to take when you are averaging down. Greg doesn't tell you how big his original, and followup positions are, so that's something you have to decide on your own. It's all a big game, and there are big risks, so be careful out there.
Got out here as well, with the same 2.5% gain. If you are still red, you probably didn't average down when Greg did.
Average down? How do you do that? I didn’t have msft this round. But I missed this average down thing. What is it, and how do you do it?
When MSFT falls, buy some more. This is why it is recommended that you have additional capital to use (dry powder) to average down...like entry you paid $5.00 per contract. Next group you paid when things dropped for like $4.50 per contract. Average cost between the two are $4.75....repeat this and the cost is averaged.
I bought more after it dropped, lowering my average cost per option. Greg said he was adding to all of his positions at one point, and I believe that's when I bought more. It's not always the right thing to do, but it worked for me in this situation.
Oh. So when you add to your positions it averages down. Now when you add to your positions, do you add for the same call or putt that you originally did? And when you do it that way, that’s the average down?
I add to the same put/call when I'm following Greg's trades if I want to average down, but I'm a noob, so take what I do with a grain of salt. Technically you could buy at a different strike price than your first one if the price drops, and you would still be averaging down in a way. You're basically betting on the stock to go back up, just getting in at a cheaper price than originally.
Other things to consider when averaging down are how big of a position to take when you are averaging down. Greg doesn't tell you how big his original, and followup positions are, so that's something you have to decide on your own. It's all a big game, and there are big risks, so be careful out there.
That helps a bunch. Thank you very much.
im almost there need just a little more....
Was going to average down on the first strong notch higher yesterday and didn’t, slight loss on this one is on me : S
I thought I bought it low when you did and I’m still in the red
Just wait. Will make profit. Bit more down before? Not nice but no prob i think. Covfefe.
Pulled an 11% profit from that one. Whew! Thanks bud!
Out too!
I was happy to get out of that trade.
Nice! Thanks Gregory.
GREAT! Not easy in this market.
Took half out at %7, keeping the rest for tomorrow. Thanks again greg!!!
Going to be disappointed...might get to even if savvy though