All the traders pouring into the same option at the same time spikes the price. The guy who got in first and gets out first gets the best gain. Then when everyone is trying to sell the bottom falls out and there's a group of bag holders who lose money.
We had some posts that were very critical of this point a few days ago, I went back and looked at several trades posted here on CBOE.com to see if there was what I would consider a “pump” on the contract price timing with the recommendation, and if so is it reasonable that a person would have time to get in, and the subsequent appreciation correlated with the underlying equity price... I didn’t see anything fishy, we are trading large cap liquid options with high open interest, yes premiums are j*cked up but that is the f*cked up market with the fed up its you know what. I’ve been party to pumps in mining and crypto, and I just don’t see it here. Maybe I’m blind... I would challenge any critic to post the option contract and subsequent price action that concerns them so we can all do are own research, unless of course you don’t really care about anyone, or you are a troll...
ya it really does not make any sense. And why would Greg try and make money off of those tiny fluctuations in msft, apple from any supposed pump when those stocks fluctuate by several percentage points during the day without him. these aren't penny stocks! These are the absolute biggest companies in the world. If he wanted to do that he would be buying small, small companies with low option prices to get as many people in as possible- lets face it a lot of these options he buys are expensive and not many of us can buy more than 1 at a time-some cannot afford them at all.
There's logic to this, some will say is pump and dump. but i would argue that Greg does this. His trades are mostly Large Cap it will take tons of money to move the needle on his trades. Im thinking only Institutions and Hedge Funds and BIG money makers move this, we are the little guys,retail traders. We just ride the coat tails of the RICH. Also you can wait and buy cheaper i often do this i buy @ the Bid or 5 cents lower and i get filled minutes before day closes.
Absolutely right Greg. One of my friends who isn't a trader always said to me that the best time to shoot a rabbit is when it's Infront of you. I personally don't like shooting rabbits but I use that analogy in my trading. Go for the low hanging fruit and repeat.
This is something I have noticed from the very beginning that you pulled your games and you didn't wait for big profits at the beginning I asked why to myself then I waited a couple more times then I figured out what you were doing you take small profits and also I knew by this about a week ago after I've been watching you for a while he's teaching people how to take a small game not to get greedy and you continue to make more and more and more but you always make more I knew that you were teaching everybody I told myself this guy is teaching people they might not know it but that's exactly what he's doing teaching they have to pay attention to what you're saying what you're doing while you're repeating things over and over and especially how you pull your profits I noticed that you go to 11%, 9%, 8%, you don't get greedy and wait for the 15 and 20 and 30% you even do a lot more shorter ones you're a good teacher keep up the good work
Thanks for the tips, but your trading alerts have got me in the red. I think it's super helpful if you post your buy price since you are wanting to help, you should realize this important.
I don't think he is going to start doing that.just try and buy within 3 minutes of receiving the e-mail and you should do fine. If you miss the e-mail then check what the stock was trading around at the time he sent it and if the stock has already made a big move up then pass on it or wait until it falls and then buy. This is how I have done it and I have not had any issues. I set my e-mail up so that is sends an alert to my Apple Watch right away so that I get the email right away. I literally bought the watch for that reason- and working out. but mostly so that I stop missing the emails
Thanks for the advice, Greg from a newbie to the game. I've been stuck for awhile now on some positions I'm holding. Just seeing my $$ roller coaster waiting for that 20%-30% gains. Smaller gains do add up.
I've been sitting on a stock for about 2 months now and looking at a 172% return so far. I think it will continue to rise, but I don't want to be greedy and potentially lose.
That's my problem. I sell to early. It ensures a profit, but then the next day I see it up high.
Take MSFT for instance. I got 6% on it yesterday and sold. Today it's up another 8%.
I like the long dated options, but sometimes I wonder how much they'd rise if I waited until the option date. I might take a few smaller options and let them ride to test.
Excellent advice. I’ve been doing this in my short-selling of over-bought stocks, 6 to 8% profit level for each trade usually day or overnight. Also, happily have noticed I’ve been doing what you mentioned successful traders always do- that is, sell too soon or in my case, buy-to-cover, too soon. Small consistent gains add up.
All the traders pouring into the same option at the same time spikes the price. The guy who got in first and gets out first gets the best gain. Then when everyone is trying to sell the bottom falls out and there's a group of bag holders who lose money.
We had some posts that were very critical of this point a few days ago, I went back and looked at several trades posted here on CBOE.com to see if there was what I would consider a “pump” on the contract price timing with the recommendation, and if so is it reasonable that a person would have time to get in, and the subsequent appreciation correlated with the underlying equity price... I didn’t see anything fishy, we are trading large cap liquid options with high open interest, yes premiums are j*cked up but that is the f*cked up market with the fed up its you know what. I’ve been party to pumps in mining and crypto, and I just don’t see it here. Maybe I’m blind... I would challenge any critic to post the option contract and subsequent price action that concerns them so we can all do are own research, unless of course you don’t really care about anyone, or you are a troll...
ya it really does not make any sense. And why would Greg try and make money off of those tiny fluctuations in msft, apple from any supposed pump when those stocks fluctuate by several percentage points during the day without him. these aren't penny stocks! These are the absolute biggest companies in the world. If he wanted to do that he would be buying small, small companies with low option prices to get as many people in as possible- lets face it a lot of these options he buys are expensive and not many of us can buy more than 1 at a time-some cannot afford them at all.
There's logic to this, some will say is pump and dump. but i would argue that Greg does this. His trades are mostly Large Cap it will take tons of money to move the needle on his trades. Im thinking only Institutions and Hedge Funds and BIG money makers move this, we are the little guys,retail traders. We just ride the coat tails of the RICH. Also you can wait and buy cheaper i often do this i buy @ the Bid or 5 cents lower and i get filled minutes before day closes.
Lower than what? The premium at the time you see the post? Most people don't post the price they paid.
Absolutely right Greg. One of my friends who isn't a trader always said to me that the best time to shoot a rabbit is when it's Infront of you. I personally don't like shooting rabbits but I use that analogy in my trading. Go for the low hanging fruit and repeat.
Greg, how do I decide when to cut losses? One big loss may take out all my gains.
5 to 7% max loss
if that's the case, why buy such long positions?
Makes it hard to avg down...?
Taxes are certainly a consideration-can you cancel out some short term cap gains w/some tax hits?
This is something I have noticed from the very beginning that you pulled your games and you didn't wait for big profits at the beginning I asked why to myself then I waited a couple more times then I figured out what you were doing you take small profits and also I knew by this about a week ago after I've been watching you for a while he's teaching people how to take a small game not to get greedy and you continue to make more and more and more but you always make more I knew that you were teaching everybody I told myself this guy is teaching people they might not know it but that's exactly what he's doing teaching they have to pay attention to what you're saying what you're doing while you're repeating things over and over and especially how you pull your profits I noticed that you go to 11%, 9%, 8%, you don't get greedy and wait for the 15 and 20 and 30% you even do a lot more shorter ones you're a good teacher keep up the good work
.
Thanks for the tips, but your trading alerts have got me in the red. I think it's super helpful if you post your buy price since you are wanting to help, you should realize this important.
I don't think he is going to start doing that.just try and buy within 3 minutes of receiving the e-mail and you should do fine. If you miss the e-mail then check what the stock was trading around at the time he sent it and if the stock has already made a big move up then pass on it or wait until it falls and then buy. This is how I have done it and I have not had any issues. I set my e-mail up so that is sends an alert to my Apple Watch right away so that I get the email right away. I literally bought the watch for that reason- and working out. but mostly so that I stop missing the emails
Thank you for the insight Gregory!
Words of wisdom!
agree
That was beautiful TY GM
Thanks Greg, very true and GREAT ADVICE!!!
Thank you .. one of my favorite posts from GM since I started following.
In retail selling we call that turnover. How many times in a year can you use the same money to make a profit.
What kinda percentages are you initial positions? Are you risking like 2% of your account per trade? Or more like 5%?
Thanks for the advice, Greg from a newbie to the game. I've been stuck for awhile now on some positions I'm holding. Just seeing my $$ roller coaster waiting for that 20%-30% gains. Smaller gains do add up.
I've been sitting on a stock for about 2 months now and looking at a 172% return so far. I think it will continue to rise, but I don't want to be greedy and potentially lose.
That's my problem. I sell to early. It ensures a profit, but then the next day I see it up high.
Take MSFT for instance. I got 6% on it yesterday and sold. Today it's up another 8%.
I like the long dated options, but sometimes I wonder how much they'd rise if I waited until the option date. I might take a few smaller options and let them ride to test.
Excellent advice. I’ve been doing this in my short-selling of over-bought stocks, 6 to 8% profit level for each trade usually day or overnight. Also, happily have noticed I’ve been doing what you mentioned successful traders always do- that is, sell too soon or in my case, buy-to-cover, too soon. Small consistent gains add up.