ok, grabbed my first call on MSFT, happy at my point of entry. Paypal I have faith but I have to go on faith in GREG to add to the airline. In Greg we trust.
No you don't have to add but you will wait longer for the option to show profit, so since the price pulled back some if you can afford another contract at the lower just OTM or the same strike price if it hasn't moved to far away and the price is cheaper today than when you bought it, then buy it.
Thanks for your reply. However, I am sorry for my ignorance but if the price pulls back and I buy another contract, doesn't that make the risk HIGHER? I am trying to understand the concept! thanks for your time!
Most traders will do a credit spread where they sell and option and buy an option and that finances their trade, but if you sell an option and it ends up not working and the option expires and they exercise the option you that other trader 100 shares of what ever stock, and just say it was AAPL you would have to cough up $38,570!!! Ouch!!! I stick to covered calls or puts so I will never lose more than the cost of the option.
ok, grabbed my first call on MSFT, happy at my point of entry. Paypal I have faith but I have to go on faith in GREG to add to the airline. In Greg we trust.
DO we have to add if we do not have enough deposit will this impact us if we do not add?
No you don't have to add but you will wait longer for the option to show profit, so since the price pulled back some if you can afford another contract at the lower just OTM or the same strike price if it hasn't moved to far away and the price is cheaper today than when you bought it, then buy it.
Thanks for your reply. However, I am sorry for my ignorance but if the price pulls back and I buy another contract, doesn't that make the risk HIGHER? I am trying to understand the concept! thanks for your time!
Yes it doubles your risk if it goes down more but it gets you in a better position at a lower cost or strike price for when it goes back up.
In your experience, Do you think buying options is better than selling option? Thanks
Most traders will do a credit spread where they sell and option and buy an option and that finances their trade, but if you sell an option and it ends up not working and the option expires and they exercise the option you that other trader 100 shares of what ever stock, and just say it was AAPL you would have to cough up $38,570!!! Ouch!!! I stick to covered calls or puts so I will never lose more than the cost of the option.
So I think it better to keep following Greg's trade
Can you explain what gives you confidence in DAL and how quickly do you expect a rebound?
Ciao Gregg, a quick trading question, do you open always a similar usd position every trade? Or it can change regarding which stock you choose?
Thx
do we have to add?