Greg normally does calls 6-7 months out with the strike price just above the current market price.
My theory as to why he does this is as follows:
1. Trading options is already high risk, but when you don't trade as far out, you're more likely to lose money, because you need the market to move faster. And, if it moves in the wrong direction, it will most likely compromise your position. So not only does it need to move in the right direction, but it needs to move fast enough, so that the option doesn't fall victim to time decay.
2. If you set your strike price higher, you can afford more options and potentially have a higher gain (some options would gain a higher percentage), but there are a few problems with this:
A. You lose your security of being "in the money" (where the stock price goes above your strike price), which means that whoever buys your option might not get paid if they buy it from you, which decreases demand and widens the gap between bid price and ask price.
B. Your option now has to make moves higher for a longer amount of time (same as #1 above, but worse).
This is where I tell you to BE CAREFUL! I've lost my shirt in options multiple times, because I didn't follow these guidelines. Buying a call option with too high of a strike price or too soon of an expiration date is high risk. And to think options are risky enough when trying to pick the right stock!
Any advice for a noob to options? Been following Greg for years .And only bought some mining stocks shares . Should I dip my toes in options ? Don't 100% understand the technicals but do understand the basics .
Start really small, just buy 1 or 2 call contracts starting out. Options are leveraged investment vehicles so you can lose or gain a lot quickly so you need to get used to their movement.
Also, watch those expiration dates on them. If you're still holding them when they expire, they expire worthless. They also lose value faster as they get closer and closer to expiration so you'll also have to consider a time aspect when you're investing in them.
Thank u ..Is it safe to play in options if I work a full-time job and can't watch the market minute to minute ? I understand the call is for 2021 but like u said ,things move quickly .Thanks for helping .We are a family here and we need to win this game together lol
I work a full time job myself. What I do is set up my email to alert Greg's calls and then make the decision to play the call as Greg has or go my own way. Honestly, some of my biggest wins have been not selling when Greg did. That being said, I still am playing with small money. I usually never go above $1k on a trade.
That can make it a bit hard to do some of the things Greg likes to do. Sometimes Greg does some trades where he only scrapes off like 1-5% profit from the options trade. If you're not actively tracking your position, there's possibility you might miss a window to sell.
I was afraid of that .I'm suffering from FOMO . Watching Greg and his lions ripping the face off the market everyday ,while I'm piddling around with a couple grand in a trading account waiting for the mining stocks to take off ,is killing me .But like u said ,maybe options aren't for people who can't be watching things 24/7 .I guess I'll just keep stacking silver and hope for the day that silver reaches it's true value and mining stocks catch up .Thanks for all ur help
You'll eventually do fine with just stacking silver. There's a very high chance it'll reach at least it's all time high price which was $49.45 in 1980 though I highly suspect it's going quite above that in the future.
I agree .I think the true value well exceeds the ATH but that would require the rigging and fakery to end ,and after years of watching the illusion remain intact it's hard not to lose hope lol
Haha after this morning's video, the market had to tempt him with red numbers and made him bite 😂
Hell just froze over. Lol
LOL didn't take long!!!
A pullback in silver? OK better buy it.
Yep, very good call position!!!
I'm biting with you
YES!!!! lets go silver
Thank you
Inn :_) Thanks again BRO
Been adding to my silver positions all day!
Greg, I've been buying SLV calls too. How do you decide what strike price and how far out? I'm new to options and trying to learn.
Greg normally does calls 6-7 months out with the strike price just above the current market price.
My theory as to why he does this is as follows:
1. Trading options is already high risk, but when you don't trade as far out, you're more likely to lose money, because you need the market to move faster. And, if it moves in the wrong direction, it will most likely compromise your position. So not only does it need to move in the right direction, but it needs to move fast enough, so that the option doesn't fall victim to time decay.
2. If you set your strike price higher, you can afford more options and potentially have a higher gain (some options would gain a higher percentage), but there are a few problems with this:
A. You lose your security of being "in the money" (where the stock price goes above your strike price), which means that whoever buys your option might not get paid if they buy it from you, which decreases demand and widens the gap between bid price and ask price.
B. Your option now has to make moves higher for a longer amount of time (same as #1 above, but worse).
This is where I tell you to BE CAREFUL! I've lost my shirt in options multiple times, because I didn't follow these guidelines. Buying a call option with too high of a strike price or too soon of an expiration date is high risk. And to think options are risky enough when trying to pick the right stock!
SLV Moonshot!
Are there any rules of thumb to judge whether the option price is a bargain or is too high?
This is day three of the Derivative Wars. A coordinated attack by the world leaders and central banks to save their fiat currencies.
I am trying to buy it. It is asking me to enter a limit price. Anyone know what I put in there?
As much as you're willing to pay
Any advice for a noob to options? Been following Greg for years .And only bought some mining stocks shares . Should I dip my toes in options ? Don't 100% understand the technicals but do understand the basics .
Start really small, just buy 1 or 2 call contracts starting out. Options are leveraged investment vehicles so you can lose or gain a lot quickly so you need to get used to their movement.
Also, watch those expiration dates on them. If you're still holding them when they expire, they expire worthless. They also lose value faster as they get closer and closer to expiration so you'll also have to consider a time aspect when you're investing in them.
Thank u ..Is it safe to play in options if I work a full-time job and can't watch the market minute to minute ? I understand the call is for 2021 but like u said ,things move quickly .Thanks for helping .We are a family here and we need to win this game together lol
I work a full time job myself. What I do is set up my email to alert Greg's calls and then make the decision to play the call as Greg has or go my own way. Honestly, some of my biggest wins have been not selling when Greg did. That being said, I still am playing with small money. I usually never go above $1k on a trade.
That sounds like something I could handle .
That can make it a bit hard to do some of the things Greg likes to do. Sometimes Greg does some trades where he only scrapes off like 1-5% profit from the options trade. If you're not actively tracking your position, there's possibility you might miss a window to sell.
I was afraid of that .I'm suffering from FOMO . Watching Greg and his lions ripping the face off the market everyday ,while I'm piddling around with a couple grand in a trading account waiting for the mining stocks to take off ,is killing me .But like u said ,maybe options aren't for people who can't be watching things 24/7 .I guess I'll just keep stacking silver and hope for the day that silver reaches it's true value and mining stocks catch up .Thanks for all ur help
You'll eventually do fine with just stacking silver. There's a very high chance it'll reach at least it's all time high price which was $49.45 in 1980 though I highly suspect it's going quite above that in the future.
I agree .I think the true value well exceeds the ATH but that would require the rigging and fakery to end ,and after years of watching the illusion remain intact it's hard not to lose hope lol