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Options: Your Fifth Element
I’m constantly told that life is what happens when you’re making other plans. Well, Great Ones, life happened today … and Great Stuff is taking a wee break to handle things.
It’s nothing serious, don’t worry. I don’t have the ‘rona or anything. I just seem to have misplaced my multi-pass. It happens — just ask Corbin Dallas.
Anywho, today’s issue will be brief. But first, I want to share a reader email really quick. It comes from long-time Great One Mike B.: Hey Joe!
First-time options trader, long-time reader. I have been an avid reader of your daily musings for a couple of years now. I used to look forward to receiving Great Stuff in my inbox every morning, but for some reason unknown to God or man, it stopped.
And, yes, I have re-subscribed numerous times, whitelisted GreatStuffToday@BanyanHill.com, sacrificed a chicken (well, a four-piece from KFC), but I digress. So, now, I look forward to reading yesterday’s edition first thing in the morning by visiting the website since they don’t post until the afternoon.
I have never traded options until one fine Saturday morning when I read the Great Stuff recommendation to buy the August 20/ $95 call on AMD. Your previous editions on options had piqued my interest, so when it became an official pick, I figured it would be a good time to take options for a spin.
Since I never traded in options, I had to go through a process with my online broker to prove to them that I had the financial capacity to trade on margin, and that took a pint of blood and a couple of days to process (they couldn’t just check my account?!).
Once approved, I was ready to dip my toes in the water. Since this was my first foray into the abyss, I was a bit cautious with my investment. I’m still learning about how these things work, so I bought one contract at $1.61, mostly because I wasn’t sure about my overall liability and the technical jargon posed when I went to place my order (Buy to Open vs. Buy to Close — still not 100% sure on these).
I figured that I wanted to buy to open and placed my order. And boy did this turn out! I ended up selling this week at $11.30 for a 600% profit! I’ll take that every day and twice on Sundays!
Thank you for doing what you do! Do you foresee more option recommendations forthcoming?
Mike, I’m so happy for you! Literally. No joking. Great Stuff exists for just this reason. To help you become better at trading and, of course, to help you make money!
Two things:
First, the Great Stuff customer care team is on the case with your email situation. It should be solved in short order. For the rest of you, if you are having issues and not receiving all of your Great Stuff emails, let us know at GreatStuffToday@BanyanHill.com, and we’ll get you sorted out.
Second, Mike just hit a 600% gain on a Great Stuff options recommendation! Let’s give him a big round of applause! (I can’t hear you! Clap louder!)
Now, as you can see … Mike had a few issues here and there with entering his first options trade. But he figured it out and made a 600% gain in the process! And you can too!
Don’t let those little hurdles get in the way of you raking in triple-digit gains. They happen to all of us the first time. Even I, Mr. Great Stuff himself, had issues trading options the first time way back in the day. I think they used punch cards back then…
Now, I could say, “You live, and you learn …” and while that is an excellent way to learn. It’s not the most profitable.
So, if you would like to see more in-depth options trading information here on Great Stuff … like “What are ‘buy to open’ and ‘buy to close?’” or “What are bid and ask prices?” let me know!
A quick tip for many of you starting out in options. Mike’s broker (whomever it is) required him to prove that he could trade on margin. That’s a fancy way of your broker making sure that if things go really bad on an options trade, you’ll have the money to pony up at the end.
Not every brokerage has this requirement for trading basic options, like buying puts and calls. Some brokerages require margin for all options trades some don’t. Neither is better than the other, in my opinion. Typically, proving you can trade on margin is only reserved for selling naked options. (And if you don’t know what that means, don’t do it. Please.)
Long story short — Short, he says after writing more than 1,000 words! — if you have any questions about trading options at all, write in to GreatStuffToday@BanyanHill.com, and I’ll be sure to answer in my own, unique … um … way? Informative and entertaining, I hope.
And with that, I will bid you adieu! Until tomorrow, Great Ones!
We’ll catch you on the flip side, but in the meantime, here’s where else you can keep up with us all across the digital nether world: Until next time, stay Great!
Regards,
Joseph Hargett
Editor, Great Stuff P.S. Big Tech Is Investing In THIS
Amazon, Apple, Google and even the U.S. Army are all investing in a new tech. That’s a lot of billionaires and tech companies making the same play.
But while everyone else is betting on artificial intelligence, genomics, crypto, 5G and electric vehicles, they’re missing out on this growth industry.
Watch this video to find out what it is…    Don't forget to follow us on social media! | | | Privacy Policy
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