I’m practicing to nail my entries even better… if target hits I will take a position.
Looks like a really beautiful upside here.
If there's any ticker symbol you'd like me to determine a good entry price just comment below and I'll do as many as time permits. Some days I have lots of time and other’s not so much but as I can I’ll do them (and If I have enough charts left)
selling contracts is short volatility. selling also benefits from time decay. when you sell contracts, you want them to go to zero. so I just sold a put at $10, if it trades sideways or only goes up a little bit, that is the best scenario because then I keep the premium and can sell another contract next month for a nice premium. if it goes down a little bit (below 10) then I get exercised (forced to buy 100 shares at 10) but I still make money because the premium out ways the loss from it going below 10. if it goes down a lot then I get left holding a bag. say it is at $6 on expiry, my gain is -400+premium collected. in addition If i try to sell a call at $10 with the 100 shares I had to buy, the premium on the call may not be so high because the price went down so much. the other bad scenario would be if it went all the way up to $15. in this case I only made $150 premium and would have been better off simply purchasing shares at ten. this doesnt scare me because I am already holding too many shares and this will be an opportunity to sell calls at 20, 17.5, and 15