GET OUT WHEN YOU’RE HAPPY
I know this sounds ambiguous but it’s important to realize that there is not just one time to get out. If you have invested $2,000 in ten contracts of a $2 option and one hour later it shoots up to $3...
View ArticleThe Strategy
Okay, here we go. A stock is at $13.50. You really like the company. You think this stock could easily go to $18 or $20. You think this because: 1. The stock is rolling between $13 and $20, and has...
View ArticleStock Low—Going Up
Sell Put—Buy Call If you sold the put for $2.50 ($2,500) and bought the call for 25*2 ($250), you would have a net in of $2,250. Now, as the stock increases, you can either buy back the put or just let...
View ArticleOther Buy-Back Strategies
Long before we purchase the stock, and along the way as it is rising, there are still other things we can do to take advantage of the “magnified movement” in the option price. As the stock rises and...
View ArticleStock High— Coming Down
Sell Call—Buy Put Sell the call for $1.50 ($1,500 if you purchased ten contracts) buy the put for 25tf. Capitalize on each—depending on the time left before expiration—at the optimum time. Buy back...
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