New Trade/Position With Play Suggestion(s).

From Greg M

JPM is a buy here.

READ THIS IN ITS ENTIRETY.

ALL MY LATEST STOCK PICKS ARE POSTED ON MY WEBSITE- CLICK HERE: https://traderschoice.net/about-traders-choice/

I STRONGLY advise you to learn how to SELL puts/options and set up credit spreads. There is MUCH more to successful trading than just buying calls and or puts.

When you BUY an option, time decay immediately starts working against you. When you SELL an option, time decay immediately begins working FOR YOU…

3 ways to play this.

#1. You can buy just ITM calls which expire out 6 months. This strategy carries the most risk, but also has the highest profit potential. -I WOULD DISCOURAGE YOU FROM UTILIZING THIS STRATEGY! A LOT OF RISK HERE. IF YOU DO CHOOSE TO BUY CALLS, CONSIDER HEDGING THEM USING ONE OF THE TWO STRATEGIES BELOW.

long Strangle

The long options strangle is an unlimited profit, limited risk strategy. This strategy is utilized when the trader/investor believes that the underlying stock will encounter high volatility in the near term. Significant gains are attainable when the underlying asset price makes an especially strong move either upwards or downwards.

To set up a long strangle strategy, the trader/investor will purchase an out-of-the-money call option and an out-of-the-money put option simultaneously, on the same underlying asset with the same expiration date.

Long Straddle

The long straddle options strategy offers unlimited profit, while limiting risk. This strategy is used when the trader/investor believes that the underlying asset will experience considerable volatility in the near term.

A long straddle strategy can be set up as follows. The investor/trader simultaneously purchases a call and put option on the same underlying asset with the same strike price and expiration date.

***AGAIN I DO NOT RECOMMEND BUYING OPTIONS UNLESS YOU ARE EXCEPTIONALLY SKILLED AT DOING SO.

#2. A BETTER STRATEGY IS THIS: Sell WAY OUT OF THE MONEY, 20% OTM, puts which expire out 2 weeks. This strategy carries less risk. You can also play this in other ways. For example, sell puts 25 to 30% OTM which expire out 1 month.

#3. THE BEST STRATEGY IS THIS: The least risky strategy is to set up a credit spread- and there are many ways to do this easily- I explain how to set up credit spreads in my book, *** link below.

I PERSONALLY LIKE TO UTILIZE EITHER SELLING PUTS, OR SETTING UP CREDIT SPREADS TO TRADE- 99% OF THE TIME I AM A NET SELLER OF OPTIONS WHEN I TRADE.

*** I cover each of the above strategies/how to set them up plus MUCH MORE in my book A (NOT) So Random Walk On Wall Street.

GM

Trading involves financial risk.