Trade Findings and Adjustments 03-21-2019
What is most important? – learning how to manage risk, and what the potential risks are in our current market.
If you pay attention to potential risks, options give us the ability to guess wrong.
In today’s stock market you have to be “picky” as to the positions you should be in
Winners – AAPL, MU, NVDA, DIS, UAA, BA,
Losers – Banks, Financials
The reason why I don’t just spread trade multi million dollar portfolios is because spread trading, outguessing the market, short term trades in 100% SPECULATION
Bull Call? It’s a long call that is capped by a short call. Short call is the hedging option. If the underlying stock goes down, we lessen our cost basis thanks to the short call.
Long Call? Go far out in time (1 yr or so), so that if things go the wrong way, it has time to come back. Lessen our cost basis by buying more contracts at a much lower price if it falls.
V Leap Long Calls out to Jan. 2021 $160 Strike @ $17. Gives us time that if Visa pulls back again, we can dollar cost average by buying more contracts at a lower price. When it gets back up, you have more profit and can lower your break even cost basis. If cost basis is 1,700 and V drops to $140, we can buy more contracts for more like $1000-1200.
What looks good today – Leap BA 400 Long call