As someone who can only buy stocks, not options, I believe I'm getting the hang of this. Facebook went down today because of bad regulatory news (for Facebook, not for the people) so it was a good time to predict that the stock would rise again in the future. It was a perfect time to buy call options, because people were selling them, fearful that Facebook would fall. When Facebook gets over this little hurdle and rises, FB calls will be wanted again, and Greg will sell them for a profit. For someone like me, the play is to wait for the dip he's predicting. In essence, to walk a step or two behind him. Sounds about right?
I need to start taking my own advice and selling contracts when everybody else is buying LOL
As someone who can only buy stocks, not options, I believe I'm getting the hang of this. Facebook went down today because of bad regulatory news (for Facebook, not for the people) so it was a good time to predict that the stock would rise again in the future. It was a perfect time to buy call options, because people were selling them, fearful that Facebook would fall. When Facebook gets over this little hurdle and rises, FB calls will be wanted again, and Greg will sell them for a profit. For someone like me, the play is to wait for the dip he's predicting. In essence, to walk a step or two behind him. Sounds about right?