5 ms·
I think there is less risk. Especially with my strategy. Also you get 100x leverage. So I will give you a sample trade from today. I bought Dec04 $600 Calls f
by marketgod 6y ago
I think there is less risk. Especially with my strategy. Also you get 100x leverage. So I will give you a sample trade from today.
I bought Dec04 $600 Calls for $900 each at 9:55 am. At 1:25 I sold for $1820. So $1000 would be $2000. Now to make $1,000 in shares it would require ($1000/($25)) so I would need 40 shares (40*$550) = $22,000 risk.
Now I only buy calls or puts so my upside is always unlimited but downside is limited to the initial order.
Swing trading stocks is really hard because you have to sleep on $22,000 overnight. You can wake up with nothing in a black swan event. With options the most I will get hit on is $50-$100,000 which I have in the market at once. The rest is ready in the savings account in cash or etfs/TSLA stock.
I think options are the safest bet. Everyone starting out should look into the wheel strategy as it's basically free money for shareholders.
- icedchai 6y agoDo you do anything with longer term options? How far do you go out?
- marketgod 6y ago30-45 days max. The Teslas/Amazons I do weekly/two weeks as I am looking for trends in my calculations. I have some LEAPS on AAPL as a test but really it's because I didn't want to hold shares any longer and it was a good bet as AAPL pulled back hard.
- giantg2 6y agoI like LEAPS (1-2 years). I try to pick companies that I believe in so that I xannhold them longer if I want. For example, MSFT and DIS.
- aparsons 6y agoWith puts your upside is limited right?
- marketgod 6y agoIt is but not that much. It's limited to how far the stock falls. So if you buy a $500 contract when the share price is $95 you can still make $9500. If you had sold puts/calls then your profit is limited to the first sale you made.