Trades

Trade Findings & Adjustments 05-04-2023

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%

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