Maybe somebody can help this proud Lion! On today's video Greg goes over the need to finesse these trades once entered in. Other then averaging down your price by buying on dips what other forms of "finessing" does Greg recommend? I'm getting hit hard on my GILD and CSCO today as my WMT too.
think you nailed it. Buy on dips. Never heard Greg buying hedges. Too complex for most people. Keep it simple if at all possible. Gregs picks are conservative blue chips. Anyone recommending puts on top of Gregs calls is over thinking it. Maybe on penny stocks and stocks under $20. I'll probably get shit for this, but thats my opinion based on a year of not missing one video, tweet or newsletter from Greg.
Never understood why i should hedge a shittrade. I ever would buy some more of it cheaper or would close the position with a loss. In my eyes hedging a shittrade is nothing else but expansive.
Hello Loins. I have a non market related question related to interest rates. I recently spoke with a mortgage broker who advised to consider refinancing. I'm 8 years into my current mortgage and would be able to pull some equity out as well. She believe I'd be saving $200-$250 per month. My concern is that if rates are heading to zero would it make sense to wait? For a 30 yr fixed I'm looking at 2.75-2.9%. My gut tells me that rates will go even lower.
That's a very good 30 year rate, The bank has to add points to make money obviously when they do a 30 year fixed but I wouldn't try to gamble it going lower to refi. That's a very good rate to refi (not all borrowers can get that rate) If it's time to refi, then I'd refi and not try guess the mortgage market future rates. 2.75-2.9 is very good for a 30 yr rate. Some people refi a year later for various reasons but that's a good rate to lock in if your going to save $200 plus a month.
Grabbed more IWM, order in lowballing WMT, looking at GILD, & CSCO if can get in at if they drop to even cheaper. Otherwise I have enough and need some dry powder for SLV
Hello Lions. I am quite new to option trading. When adding to position what are some rules or concepts to follow. Any feedback would be appreciated. Thanks so much
There is not THE concept, there are lot different concepts. You have to chose which one is best for you. Chris and Bad369 described one of them. Sometimes i did it the same way and at the end it was a good idea. IF I would teach Newbies I would tell them NEVER to act in this way, except it was your plan before you opened the first position. In general it is simple. Imagine the position you open would lose everything - 100 % loss. You have to be able to handle this case. So: Before you open a position you have to ask yourself how much loss you would accept with the trade. Than you have a Stopploss in mind. Maybe Stopploss is Zero, important is the loss in USD you would accept. Let's say you would accept a loss of 1000 USD. Than you know if it's possible to buy some more of the position that is in a loss or if it's impossible because your "new" risk in this case would be more than 1000 USD. Adding to a position that is in the profit zone always is allowed when you believe in the trade. It's difficult for me to explain in english, feel free to ask if you don't understand my explanation.
It can be tricky too if it is turning out to be a losing trade your averaging down can be a bad idea in the States the option cost itself is usually the stop loss but those of us using smaller accounts can be tricky letting it run that far. I'm trying to figure this out too.
Thanks. The responses provided were very good. Bottom line you massage a position according to how you think it's going to perform. With my CSCO trade initially I got in at a horrible level. I doubled down a coupe of times as it dropped now my average I think is pretty good. However, I know it is a risky and trade and doubling down on it made it it a very large position for my account. Its now 55% of my account. In the future I will not let this happen. Hopefully it turns out to be profitable.
I have a rule I follow (depending on how much I like the companies fundamentals). After my initial buy, I buy more if it drops 7% or more, then 20% or more. Kodak is at 60% loss right now and I don't intend to buy more as I don't think Kodak is a good company. But like JNJ and CSCO, which are more than 10% loss right now, I'll buy more every so often. If you're not able to sit on your bum and watch the magic mirror all day long, don't buy stocks like Kodak (or use limits).
No, i meant buy another call(s). Hopefully at a lower price than you first bought it for. No puts involved in my explanation. Let me know if you need more clarification.
Trying to add but Fidelity is really acting up today. I could have got in MUCH lower, had to reboot and some recovered. I still can't get the fields to show up. :(
You'd think they can do their server maintenance at night or on a test server before applying it to production servers. It worked yesterday. Not sure what causes those fields to hose up like they are.
Maybe somebody can help this proud Lion! On today's video Greg goes over the need to finesse these trades once entered in. Other then averaging down your price by buying on dips what other forms of "finessing" does Greg recommend? I'm getting hit hard on my GILD and CSCO today as my WMT too.
think you nailed it. Buy on dips. Never heard Greg buying hedges. Too complex for most people. Keep it simple if at all possible. Gregs picks are conservative blue chips. Anyone recommending puts on top of Gregs calls is over thinking it. Maybe on penny stocks and stocks under $20. I'll probably get shit for this, but thats my opinion based on a year of not missing one video, tweet or newsletter from Greg.
The other thing you can do is you can hedge by buying puts on your positions.
Where do you recommend buying your PUTS? that's something I'm trying to figure out
Never understood why i should hedge a shittrade. I ever would buy some more of it cheaper or would close the position with a loss. In my eyes hedging a shittrade is nothing else but expansive.
managed to dump DIS at a profit 10 minutes ago! Greg, by George, you've done it again! Oh, Mannarino, you beautiful son of a.........
silver added into my positions. good luck @ all.
season: https://www.seasonalcharts.com/img/METALS-FUT/SILVER.GIF
Cisco is on the move right now.
Hello Loins. I have a non market related question related to interest rates. I recently spoke with a mortgage broker who advised to consider refinancing. I'm 8 years into my current mortgage and would be able to pull some equity out as well. She believe I'd be saving $200-$250 per month. My concern is that if rates are heading to zero would it make sense to wait? For a 30 yr fixed I'm looking at 2.75-2.9%. My gut tells me that rates will go even lower.
Any ideas thoughts would be greatly appreciated!
Ty!
That's a very good 30 year rate, The bank has to add points to make money obviously when they do a 30 year fixed but I wouldn't try to gamble it going lower to refi. That's a very good rate to refi (not all borrowers can get that rate) If it's time to refi, then I'd refi and not try guess the mortgage market future rates. 2.75-2.9 is very good for a 30 yr rate. Some people refi a year later for various reasons but that's a good rate to lock in if your going to save $200 plus a month.
Grabbed more IWM, order in lowballing WMT, looking at GILD, & CSCO if can get in at if they drop to even cheaper. Otherwise I have enough and need some dry powder for SLV
just got me some csco come on baby!
Hello Lions. I am quite new to option trading. When adding to position what are some rules or concepts to follow. Any feedback would be appreciated. Thanks so much
There is not THE concept, there are lot different concepts. You have to chose which one is best for you. Chris and Bad369 described one of them. Sometimes i did it the same way and at the end it was a good idea. IF I would teach Newbies I would tell them NEVER to act in this way, except it was your plan before you opened the first position. In general it is simple. Imagine the position you open would lose everything - 100 % loss. You have to be able to handle this case. So: Before you open a position you have to ask yourself how much loss you would accept with the trade. Than you have a Stopploss in mind. Maybe Stopploss is Zero, important is the loss in USD you would accept. Let's say you would accept a loss of 1000 USD. Than you know if it's possible to buy some more of the position that is in a loss or if it's impossible because your "new" risk in this case would be more than 1000 USD. Adding to a position that is in the profit zone always is allowed when you believe in the trade. It's difficult for me to explain in english, feel free to ask if you don't understand my explanation.
It can be tricky too if it is turning out to be a losing trade your averaging down can be a bad idea in the States the option cost itself is usually the stop loss but those of us using smaller accounts can be tricky letting it run that far. I'm trying to figure this out too.
Thanks. The responses provided were very good. Bottom line you massage a position according to how you think it's going to perform. With my CSCO trade initially I got in at a horrible level. I doubled down a coupe of times as it dropped now my average I think is pretty good. However, I know it is a risky and trade and doubling down on it made it it a very large position for my account. Its now 55% of my account. In the future I will not let this happen. Hopefully it turns out to be profitable.
I have a rule I follow (depending on how much I like the companies fundamentals). After my initial buy, I buy more if it drops 7% or more, then 20% or more. Kodak is at 60% loss right now and I don't intend to buy more as I don't think Kodak is a good company. But like JNJ and CSCO, which are more than 10% loss right now, I'll buy more every so often. If you're not able to sit on your bum and watch the magic mirror all day long, don't buy stocks like Kodak (or use limits).
buy low, sell high! Seriously? Set a limit price, buy the exact same option you have but at a lower price than your initial call.
So buy a call then sell a put for the same price? Just trying to understand.
No, i meant buy another call(s). Hopefully at a lower price than you first bought it for. No puts involved in my explanation. Let me know if you need more clarification.
Sell a call at the lower price.
Trying to add but Fidelity is really acting up today. I could have got in MUCH lower, had to reboot and some recovered. I still can't get the fields to show up. :(
Yep Fidelity is effed right now
I think it's working now. At least on Chrome. It wasn't 15 mins ago.
You'd think they can do their server maintenance at night or on a test server before applying it to production servers. It worked yesterday. Not sure what causes those fields to hose up like they are.
I'm thinking about adding to my CSCO as well here only position right now
Thanks Gregory!