Trade Findings & Adjustments 05-04-2023
Thoughts on “trading” in today’s market
First – Instant Gratification = Day Trading/Gambling
NOT an “investment process” = Means it will take some time to achieve the desired results
Biggest mistakes are not waiting long enough
Sometimes our research is way before the move, news, earnings, war, elections, weather, upgrades/downgrades
OUR MARKETS ARE MANIPULATED – Fed, institutional trader, companies, brokerage firms
Second – FOMC market meaning = raised 0.25% or 25 basis points
Probably another couple of ¼ rate hikes BUT they are closer to the end than they were yesterday
That pause will be our catalyst into the future BUT the fed aways over shoots
They will NOT plan on cutting rates in 2023
Third – what can make money? = Companies that don’t need to borrow or companies that make money off of borrowing money = Banks, Credit card companies, Big Tech who has huge cash piles
IF it were me I think we need time into next year and I also would want a hedge
Leap Bull Call positions
Leap bull calls = Long call = right to buy the stock at a certain price for a certain period of time
Short call which is obligation to sell a stock at a certain price for a certain period of time
Meta Jun 2024 240/300
Between now and June 2024 Right to Buy Meta @ $240
Between now and June 2024 we could be obligated to sell @ $300
Max profit from buy/sell price is what = $60
In real life you have to take out the cost basis 55.45-33.05=22.40
Real max profit 60-22.40 = 37.60 / 22.50 ROI 167%
