The buy-and-hold model for stocks can’t work for you like this method can.
There’s a way to make faster profit in weeks rather than months or years… and instead of making 10% (projected stock market gains) you can make 50%, 100%, or more on your wins.
I’m not talking about day trading…
With this method, you risk a fraction of what it would cost to buy the stock outright.
Let me break down how this is even possible.
There’s a way to buy and sell contracts to control stock – these contracts are called options.
You can effectively buy and sell options to control stock without necessarily touching the stock at all.
When you buy and sell options, you place a trade based on a these factors…
- Positioning – Buy/Sell to Open/Close
When you open a basic call or put, typically, you will buy-to-open and sell-to-close. There are other ways to position trades when you get to more complex trading methods.
These terms refer to whether you are buying or selling an option and whether you are opening or closing a positon.
- Ticker Symbol
You need to make sure you are opening a contract for the correct stock symbol.
- Expiration Date
This is the date through which the option is active. The option will “expire” on the expiration date.
- Strike Price
The strike price is the price of the underlying asset or stock.
- Call vs Put
Calls are the option to buy 100 shares of stock, puts are the option to sell them.
- Limit Price
This is how much you are paying for the option.
Those are the basics of setting up your trade.
I’ll dive more into volatility and how that can impact your profit soon.
Until next time,
3 responses to “Maximize Your Profit this Quarter”
October 20 2022