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RE: For New Lions! A Video Series On Options Trading Basics. By Gregory Mannarino
Just watch the "In the money" and "Out of the money". Great video.
What I find the hardest with options is the time issue, I can usually pick the right moves, but I was too greedy and bought shorter time options. I believe you buy mostly 3 month options, right?
Yes.
got it
Actually, upon checking the price of your Sept SLV $14 calls the bid is now at 1.92, which we both "know" is right around the price you paid for that trade wehn you posted it to your blog. So I apologize for saying you have a loss. You are "break even" right now at a market order to sell. No trades as of yet as of right now...10:25 AM EST. So we know you didn't sell...as of yet. :-)
Also, I am only providing my commentary on how options "actually" work because you personally invited me here during our one on one discussion this past weekend as you promised to show me "how it's done." in the options trading world. So far you have been a man of your word and allowed my spews to be viewed. I think others can see what I am spewing anyhoo, unlike over at Utube. :-)
Yep. The time decay factor of a bad entry is THE killer of any options trade. Your Ty Ming must be very precise. The good news is that "if" you can become precise you can then lower the amount of your wager. The SLV trade I outlined at my blog, which I took profits in yesterday, generated over $150 in profits on a $140 and a $180 wager, plus I got my initial bankroll back. The GDX trade I still left open was a $180 bet initially...and I have until 7/21 until expiry. Of course I was in both bets a day or 2 before Greg posted his long in SLV and GLD. The time premium of those 2 days are the difference between a losing bet like Greg is holding...and a winning bet. So please learn the importance of Ty Ming when you trade options. It is the most important factor.
Using fibs can greatly improve your odds on targets and time analysis. Knowing theta, OI, gamma, Delta and IV are important as well. If you don't understand these, options will be very difficult for max profitability. GL