Maximize Your Profit this Quarter
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.
There’s more info on options right here.
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,
Mark Sebastian
Comments
3 responses to “Maximize Your Profit this Quarter”
Leave a Reply
October 20 2022
I bought puts, 10 that expire tomorrow 10/21/22
I don’t know why? I’m still learning. When options expire. Does that mean at the closing bell? I’m down 10 bucks. What would you recommend? Thanks Mark. I appreciate your advice.
Thank you very much for the recap. I really appreciate you for taking the time to keep my mind on track. I really means alot!
Thank you for that very clear and no fluff explanation. I NEED to have things explained to me like I’m in kindergarten. It’s those first concepts that I connect everything else to, so I need to truly understand them, ( Not just hear them often!) For me, it’s like hearing the wrong lyrics to a song…I’ll remember it wrong forever till I’m corrected (seven seagulls, fishmaster!) lmfao!
So often I feel like people want to impress and sound really smart, so they make things sound more complicated or complex than they actually are. For those of us who are just learning, it becomes a problem because we are already confused and over complicating things in our head because we are not a custom to the language. Then somebody goes and adds a bunch of unnecessary fluff and be, making it seem ever so much more complex than it is/needs to be! It’s like they may as well be speaking Japanese to me, someone who isn’t fluid in the vernacular of trading. I think teaching is an art in of itself and not everyone has the patience or the empathy to put themselves in the mind of somebody who is starting at complete zero after having already mastered something well enough to teach it. So, Thank you
And I look forward to more definitions so that I can build on the knowledge they have. It all fascinates me I’m obsessed with it right now and I hope to become a full-time trainer soon. It’s one of always wanted and I’m finally giving myself permission. I know I’m gonna be good I’ve been fallowing the stock market all my life.