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Mind Medicine (MMEDF) getting listed on NASDAQ 🚀
Getting to be almost that time with X again
Anyone starting to build a UVXY position now?
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Anyone eyeing IPoF IPOd or BFT?
SOFI a buy right now or nah?
WE’RE BACK, TO THE MOON BOYS WE GOT THIS
Sell out of the money puts.
It's generally less risky and you'll learn about strike price and expiry.
Sell an OTM put and buy a further OTM put with a lower strike as insurance. This is called a vertical spread if you google it you’ll find much better explanations than I can give here. But selling puts has theoretically infinite loss potential but your second put makes this a defined risk trade. Your profit potential is the net difference in the strikes of the puts.
Start small! Buy 1 SPY call expiring in like 1 month and see how it’s value changes compared to the index.
Read the basics, paper trade for a few months, position size and make sure you stick to your own rules. For me, that’s position size, drawing my own resistance and support lines, tracking momentum and volume. Being patient when I don’t see anything good, and not getting greedy with positions. Take profits quickly.
Read a lot before you begin. It’s a very risky game and i lost a lot in the beginning. Don’t listen to average joes for advice. Also take advantage of all the free resources on YouTube. tasty trades is a good channel well as smb capital. Again, do not watch average joes who are trying to sell you on bs
Take advantage of td ameritrade think or swim platform since it has a paper trading version for free.
Generally speaking credit spreads and condors are your safest bet in terms of options to start off. So are selling covered calls but since you’re a new trader i don’t think you have 100+ shares of a reliable stock. I like trading spreads and condors on diverse index/etfs like RUT and SPX DIA. Less risk exposure in a certain area. Nasdaq/qqq is risky since it is heavy in tech.
Visual Storyteller
1) Make sure you understand the market and it’s catalysts
2) Have a handful of stocks you know like the back of your hand
3) Understand basics of options (options playbook by Brian Overby helped me)
4) Take a screenshot of the options chain of the trades you make (entry and exit). I do this to try to understand the Greeks better. The more you do it, the more you can understand future moves
5) Have an exit strategy and always follow through on it
Read Natenberg’s book… should be all you really need to know.
Another good read is options traders hedge fund
$300 MSFT Call 9/17
Cash secured puts and covered calls. Make steady money as you learn about the Greeks. Watch YouTube channels like inthemoney and kamikase cash. Absolutely worst thing you could do is try and make a quick buck and have it blow up in your face.
Following..
Following.. any suggestions for which platform is better for option trading ? TD American or others ?
Td Ameritrade is ok…but don’t forget it also come with ThinkorSwim, separate app/website that’s specifically designed for options. It’s one of the better ones.
Start with paper money. Market is crazy today. Today is puts day:)