Recently he has closed positions within hours, but sometimes he will hold the position and buy more if it goes down in price. He hasn't made clear how much % he adds on a position that turns against us, as it seems he wants the lions to figure that sort of thing out on their own. Your one "job" if you're following his trades is to pull profit. He is a higher skilled trader than most of us so you MUST protect your own capital and finesse your own positions and basically come up with a trading strategy that works for you. You won't have pockets as deep as Greg, and you won't have the same timing, so your own skill trading options will become very relevant here especially on some of his smaller profit margin trades.
If your platform shows you the volume on these specific options he's tradnig, I can tell you him or someone else here who follows his trades have very, very, very deep pockets. Just that one SPY call is showing 3 million dollars of action. Lions roaring! 🦁
I'm not sure if you "usually 5%" is super accurate as it's a bit of a simple approach and this might mislead some lion cubs into thinking there is more wiggle room on all the trades which won't be the case. Go back and have a look at the recent posts on this blog archive, and you will see that quite often he is happy with 1% profit, 2% profit, etcetera. For example just yesterday he closed AAPL for 1% profit. This is very important to keep in mind for lion cubs following Greg's trades. Often, you will have less than 1% margin for error to stay profitable. Even if you bought and sold some of Greg's positions at the exact time you get the RSS alert from this blog, you would likely struggle to get a full 1% profit, as the volume he alone generates on the specific options he's buying will push the prices up and you won't get as good an entry. I say this not to dissuade you or other cubs reading this, but more as a warning that you absolutely must limit your risk, protect your capital, and become more skillful at options trading independently of Greg's tips, because you will need it.
It depends on your position sizing of course. And rule of risk to reward shouldn't be abandon, the same as dollar cost average. if he enters with initial 25k position and gaining 1%-5% he is making 250-1000 a day on ONE position which is way enough for average Jo. He is playing ver very safe, which limits crazy volatility and let lions to cut losses quick. You should always have RR ratio 1:2+
With the exception of a couple of his picks such as XLE (curse you, XLE!) he exclusively "swing trades" very high volume stocks. He's posted many many times, and keeps an embedded table on his website, that he uses TradingView's stock screener and looks for "strong buy/sell" recommendations in the large and mega cap stocks. It's unclear to me if this is his only picking criteria, but it would be unlikely. It appears he watches Marketwatch news feed quite closely so possibly he's getting ideas from there. He's active nearly every hour on twitter, so you can check out who he follows as this may be another source for his ideas. I keep a separate list on my own tradingview account of "GM's watchlist", but as you might suspect it's a rather large list.
There is a guy on youtube called Vic S who did a "how to" setup his quant system. I also tried to emulate his TOS Ameritrade TD setup on my TradingView charts (can't use TOS in my country, unfortunately as it's very good), and basically have found it to be quite useful to find overwhelming bull patterns, I use the following indicators from his system, and heikin ashi/candles swapping - EMA 9/close/0, Vol (default), HMA 9 close, SMAs 50/100/200, Stoch RSI 3/3/14/14 close, and UO 7/14/28
Hope that helps, it's not overly technical, I believe there are lots of systems like the above where you have three or four fairly reliable indicators that are aggregating signals and you want to watch them to see strong correlative signals from all three or four indicators. I'll give an example as to how I use the above indicator set. I'm looking for all of the indicators to "say" the same thing and "add up" to a likely predictor of the near term price action either on the upside to sell into or on the downside where we can get an entry on a stock we like.
1. if the price has broken above the 50 SMA that's bullish
plus
2. HMA is crossing through EMA
plus
3. Stoch RSI K+D has been below 30/20 and have both crossed back up through and towards 70/80
plus
4. UO has been close to or below 30 and has crossed back through as it heads towards 70/80.
That's one very simple way to use indicators to attempt future predictive price action. If you have success post in this thread, I'd be interested in your results!
Hello Lions! Need some ideas/suggestions on how to move or re-allocate my 401K investment? I 100% agree with Greg and would like to do something about it before it's too late.
Just wait until the debt market signals a eminent crash. Then take your money out and put it in bonds and real estate and hard assets like gold and silver and Bitcoin
missed it, but Greg, you may appreciate this. I was doing a wheel align on my Caddy in my drivewaY. Came perfect. I'll grab it in AM if stiull looks good
A good example of Greg's advice to be patient with our positions. I have GE options, GE tanked, I added to my position, and today options were up 80% in one day! Still underwater on some, but sold some on the way up.
in at 24.48
Got it down to 24.83
In @ 16.50 12/31
Hmm good idea
It just tanked
Anyone know how long he plans to hold these type of options?
Until they show profit
Sure, but like hours or weeks? I'm sure there's more a plan than "till they profit"
Recently he has closed positions within hours, but sometimes he will hold the position and buy more if it goes down in price. He hasn't made clear how much % he adds on a position that turns against us, as it seems he wants the lions to figure that sort of thing out on their own. Your one "job" if you're following his trades is to pull profit. He is a higher skilled trader than most of us so you MUST protect your own capital and finesse your own positions and basically come up with a trading strategy that works for you. You won't have pockets as deep as Greg, and you won't have the same timing, so your own skill trading options will become very relevant here especially on some of his smaller profit margin trades.
generally if he gets anything close to 10% it appears he is closing, I suspect his positions are much larger than the average here
If your platform shows you the volume on these specific options he's tradnig, I can tell you him or someone else here who follows his trades have very, very, very deep pockets. Just that one SPY call is showing 3 million dollars of action. Lions roaring! 🦁
fair point Sir, thank you kindly.
he usually pulls 5% profits
I'm not sure if you "usually 5%" is super accurate as it's a bit of a simple approach and this might mislead some lion cubs into thinking there is more wiggle room on all the trades which won't be the case. Go back and have a look at the recent posts on this blog archive, and you will see that quite often he is happy with 1% profit, 2% profit, etcetera. For example just yesterday he closed AAPL for 1% profit. This is very important to keep in mind for lion cubs following Greg's trades. Often, you will have less than 1% margin for error to stay profitable. Even if you bought and sold some of Greg's positions at the exact time you get the RSS alert from this blog, you would likely struggle to get a full 1% profit, as the volume he alone generates on the specific options he's buying will push the prices up and you won't get as good an entry. I say this not to dissuade you or other cubs reading this, but more as a warning that you absolutely must limit your risk, protect your capital, and become more skillful at options trading independently of Greg's tips, because you will need it.
It depends on your position sizing of course. And rule of risk to reward shouldn't be abandon, the same as dollar cost average. if he enters with initial 25k position and gaining 1%-5% he is making 250-1000 a day on ONE position which is way enough for average Jo. He is playing ver very safe, which limits crazy volatility and let lions to cut losses quick. You should always have RR ratio 1:2+
Hey @lionHelper - can you recommend material to watch or read how Greg scan and find stocks to trade?
With the exception of a couple of his picks such as XLE (curse you, XLE!) he exclusively "swing trades" very high volume stocks. He's posted many many times, and keeps an embedded table on his website, that he uses TradingView's stock screener and looks for "strong buy/sell" recommendations in the large and mega cap stocks. It's unclear to me if this is his only picking criteria, but it would be unlikely. It appears he watches Marketwatch news feed quite closely so possibly he's getting ideas from there. He's active nearly every hour on twitter, so you can check out who he follows as this may be another source for his ideas. I keep a separate list on my own tradingview account of "GM's watchlist", but as you might suspect it's a rather large list.
There is a guy on youtube called Vic S who did a "how to" setup his quant system. I also tried to emulate his TOS Ameritrade TD setup on my TradingView charts (can't use TOS in my country, unfortunately as it's very good), and basically have found it to be quite useful to find overwhelming bull patterns, I use the following indicators from his system, and heikin ashi/candles swapping - EMA 9/close/0, Vol (default), HMA 9 close, SMAs 50/100/200, Stoch RSI 3/3/14/14 close, and UO 7/14/28
Hope that helps, it's not overly technical, I believe there are lots of systems like the above where you have three or four fairly reliable indicators that are aggregating signals and you want to watch them to see strong correlative signals from all three or four indicators. I'll give an example as to how I use the above indicator set. I'm looking for all of the indicators to "say" the same thing and "add up" to a likely predictor of the near term price action either on the upside to sell into or on the downside where we can get an entry on a stock we like.
1. if the price has broken above the 50 SMA that's bullish
plus
2. HMA is crossing through EMA
plus
3. Stoch RSI K+D has been below 30/20 and have both crossed back up through and towards 70/80
plus
4. UO has been close to or below 30 and has crossed back through as it heads towards 70/80.
That's one very simple way to use indicators to attempt future predictive price action. If you have success post in this thread, I'd be interested in your results!
thanks much for your detailed reply - appreciate it a lot!
Not really lol! We usually profit within 8 weeks.
Thanks!
I once held it 1 minute got 5% gain
Wow talk about volatile!!! Now buy $340 calls it just dropped.
Down 200 already great lol.
Already up $100 in 30 seconds. Thanks Greg!
Contract price
wow! anyone looking at spy after hours? and then it really crashed.
another winning trade..
Hello Lions! Need some ideas/suggestions on how to move or re-allocate my 401K investment? I 100% agree with Greg and would like to do something about it before it's too late.
Just wait until the debt market signals a eminent crash. Then take your money out and put it in bonds and real estate and hard assets like gold and silver and Bitcoin
I'm looking into doing a in-service rollover to be able to put it into those assets. Thanks
missed it, but Greg, you may appreciate this. I was doing a wheel align on my Caddy in my drivewaY. Came perfect. I'll grab it in AM if stiull looks good
A good example of Greg's advice to be patient with our positions. I have GE options, GE tanked, I added to my position, and today options were up 80% in one day! Still underwater on some, but sold some on the way up.
Thanks for the heads up! Got lucky as I didn't see your post until just before the market close and got in at the end of the day near the low.
Tomorrow will be a good day ! 24.55 avg. 24.45 at close
In @ 24.68 Thanks!
In @ 25.15