Hey Greg and lions, how does stop-loss work in this strategy?
For example, if I make a trade and it give me a 5% profit, then I make another trade and it is not going in favor of my direction (let's say the market crashes), in this case wouldn't my loss be much bigger than any possible profit? As options lose their value as they approach expiration (I know expiration for these trades should be almost a year away, but still...) Therefore, do I need to use a stop-loss?
I know I should not put much of my total % in the same trade, but in this case if I'm positioned in many different trades (as Greg occasionally is), in an eventual huge stock drop, I would be burned to the ground... so, should I use a stop-loss?
I am a rookie and trying to learn. Thank you for everything!
If you ask me you should never open a position without a stop-loss /in mind/. I think you should know before what to do not to think about it when a position is in a loss. It's easy to open a position. The difficulty is - in any case - to close it. With loss OR profit.
Thanks Zio I absolutely agree with that! I'm just not sure yet what would be a good strategy for a stop-loss in case of trading options... as far as I could watch, these options are extremely volatile, so their price may be in a huge loss and soon after back to profit again. I'm confused about it, sorry.
I was thinking about two targets for stop-gain (when it hits 5% and 10%), but not sure about stop-loss, since any value above 5% or 10% for a loss doesn't seem to make sense to me (because I would not be mathematically well positioned) - also, they seem to be too low in such a way that any swing down in price would hit these stops...
I never use a stop loss because the sell trigger will always sell and give you a bunch of losses, because option trading is all about chance, so I would suggest growing some BALLS and be willing to lose it all on every option trade!!! But there is a little trick that Greg has taught me, and that is when an options trade move against you, just buy more options to lower the price of the option, and say you bought a call option for 10.50 and It drops, just buy more of the same call that went down and you will own 4 contracts for 4.75, and If it drops some more buy more call options and now you own 7 call contracts for 2.15 each!!! once the stock price goes up you will make a profit!!! If you use A STOP LOSS and take a loss every time the stock goes down from having a stop loss because you are scared, you will ALWAYS LOSE YOUR A$$!!!
Options swing Up and down, so if you have a stop loss you wouldn't have an option left on your option trade monitor in two days, and all would sell for a loss!!! Add to the position if it moves away from you and get ready to do this on almost every option, so keep some dry powder always!!!
Not True Sir, Greg's trades will sometimes pull back some before they go up to cash in for a Profit, so Greg always says to keep some DRY POWDER ready to add to your positions if the trade moves away from you. That is the trick that help sell faster with a PROFIT should an option move against you, or else you have to sit and wait longer for the option to begin to gain value and show a PROFIT.
Not True Sir, Greg's trades will sometimes pull back some before they go up to cash in for a Profit, so Greg always says to keep some DRY POWDER ready to add to your positions if the trade moves away from you. That is the trick that help sell faster with a PROFIT should an option move against you, or else you have to sit and wait longer for the option to begin to gain value and show a PROFIT.
This trade is looking good so far. I was kind of hesitant getting into it since I already have quite a bit of money tied up in financials in the form of XLF which also holds quite a bit of JPM already.
All of this is WAY over my head I’d like to learn more but does it work okay just to buy and sell too? Like when you say the call option to I take that as a buy ?
Options losses/gains change much more dramatically than the stocks they are based on. When we buy these long options it is to sell when the hype for a stock is peaking. A 1.5% increase in a stock price, like this JPM trade did, will sometimes yield a 10,15, even 20% gain on the long options because the stock outlook is looking positive. In my opinion, just start with the cheaper options that GM posts that he doesn't label highly speculative and don't panic when it pulls back, just buy more to average down. Of course it's situational.
I'm waiting for a pullback and buying a lot of SLV and GLD calls, and I already sold SLV calls this week at its all time high for a nice profit, so let them pull back some and Buy back in because GLD and SLV are going to the moon!!!
“So I have a lot of enemies out there. >>>This may be the last time you’ll see me for a while.<<< A lot of very, very rich enemies, but they are not happy with what I’m doing,” said Trump.
So XLF looks to be a good option,(no pun intended). I can't buy JPMs calls since I don't have a stock position in JPM in my IRA portfolio, at least that what Ameritrade told me.
Hey Greg and lions, how does stop-loss work in this strategy?
For example, if I make a trade and it give me a 5% profit, then I make another trade and it is not going in favor of my direction (let's say the market crashes), in this case wouldn't my loss be much bigger than any possible profit? As options lose their value as they approach expiration (I know expiration for these trades should be almost a year away, but still...) Therefore, do I need to use a stop-loss?
I know I should not put much of my total % in the same trade, but in this case if I'm positioned in many different trades (as Greg occasionally is), in an eventual huge stock drop, I would be burned to the ground... so, should I use a stop-loss?
I am a rookie and trying to learn. Thank you for everything!
If you ask me you should never open a position without a stop-loss /in mind/. I think you should know before what to do not to think about it when a position is in a loss. It's easy to open a position. The difficulty is - in any case - to close it. With loss OR profit.
Thanks Zio I absolutely agree with that! I'm just not sure yet what would be a good strategy for a stop-loss in case of trading options... as far as I could watch, these options are extremely volatile, so their price may be in a huge loss and soon after back to profit again. I'm confused about it, sorry.
I was thinking about two targets for stop-gain (when it hits 5% and 10%), but not sure about stop-loss, since any value above 5% or 10% for a loss doesn't seem to make sense to me (because I would not be mathematically well positioned) - also, they seem to be too low in such a way that any swing down in price would hit these stops...
I never use a stop loss because the sell trigger will always sell and give you a bunch of losses, because option trading is all about chance, so I would suggest growing some BALLS and be willing to lose it all on every option trade!!! But there is a little trick that Greg has taught me, and that is when an options trade move against you, just buy more options to lower the price of the option, and say you bought a call option for 10.50 and It drops, just buy more of the same call that went down and you will own 4 contracts for 4.75, and If it drops some more buy more call options and now you own 7 call contracts for 2.15 each!!! once the stock price goes up you will make a profit!!! If you use A STOP LOSS and take a loss every time the stock goes down from having a stop loss because you are scared, you will ALWAYS LOSE YOUR A$$!!!
Options swing Up and down, so if you have a stop loss you wouldn't have an option left on your option trade monitor in two days, and all would sell for a loss!!! Add to the position if it moves away from you and get ready to do this on almost every option, so keep some dry powder always!!!
Greg’s trades never go down. No need to worry. Just fire your Benjamin’s with confidence. Scared money doesn’t make money. 💰💰💰💰
Not True Sir, Greg's trades will sometimes pull back some before they go up to cash in for a Profit, so Greg always says to keep some DRY POWDER ready to add to your positions if the trade moves away from you. That is the trick that help sell faster with a PROFIT should an option move against you, or else you have to sit and wait longer for the option to begin to gain value and show a PROFIT.
Greg’s trades never go down. No need to worry. Just fire your Benjamin’s with confidence. Scared money doesn’t make money. 💰💰💰💰
Not True Sir, Greg's trades will sometimes pull back some before they go up to cash in for a Profit, so Greg always says to keep some DRY POWDER ready to add to your positions if the trade moves away from you. That is the trick that help sell faster with a PROFIT should an option move against you, or else you have to sit and wait longer for the option to begin to gain value and show a PROFIT.
This trade is looking good so far. I was kind of hesitant getting into it since I already have quite a bit of money tied up in financials in the form of XLF which also holds quite a bit of JPM already.
I'm up 13% in under an hour. I'd say it's looking good, yes.
Dang the instant gains on this trade GM....you a bad bad boy 🥰
All of this is WAY over my head I’d like to learn more but does it work okay just to buy and sell too? Like when you say the call option to I take that as a buy ?
Options losses/gains change much more dramatically than the stocks they are based on. When we buy these long options it is to sell when the hype for a stock is peaking. A 1.5% increase in a stock price, like this JPM trade did, will sometimes yield a 10,15, even 20% gain on the long options because the stock outlook is looking positive. In my opinion, just start with the cheaper options that GM posts that he doesn't label highly speculative and don't panic when it pulls back, just buy more to average down. Of course it's situational.
Anybody pick up GDX and GLD call options?
I'm waiting for a pullback and buying a lot of SLV and GLD calls, and I already sold SLV calls this week at its all time high for a nice profit, so let them pull back some and Buy back in because GLD and SLV are going to the moon!!!
ah cool. btw, any thoughts on NVDA going into earnings next week? the stock looked quite bullish so far.
Not to familiar with NVDA sorry.
somethin' in the air?
“So I have a lot of enemies out there. >>>This may be the last time you’ll see me for a while.<<< A lot of very, very rich enemies, but they are not happy with what I’m doing,” said Trump.
I got on this one shortly after you called it.
Thanks Greg!
Thanks G, Looking forward to kicking a little back upstairs ;-)
Thank you Gregory.
Thanks Greg!!! Checking it out now.
I only know basics of buying and selling. Thanks for the tip on doing limit order than market order I didn’t even know that Lions I am a cub LOL
I took your advice and got in just in time and the thing took off like a rocket ship 🚀!! 🤑
So XLF looks to be a good option,(no pun intended). I can't buy JPMs calls since I don't have a stock position in JPM in my IRA portfolio, at least that what Ameritrade told me.