Good morning, In part 1, part 2, and part 3 of this 9 part series ⦠⦠I taught why [this strategy]( is better for trying to build a small account compared to penny stocks. Now letâs examine HOW it works. Options trading BLUEPRINT for traders with SMALL ACCOUNTS. HOW to get 3 ways to win on every trade. Monday TSLA was trading at $194. When a novice trader buys the $187.50 out-of-the-money put thereâs only one way to win. TSLA must fall below $187.50. This gives them low probability, letâs say 30%. That $6.37 price of the put option they bought has no true value. Itâs only made up of time. Every minute TSLA is above $187.50, that $6.37 loses time value like a leaky bucket. Time value leaks on the weekends too. Time value always heads toward $0. And it does so at its fastest rate in the final 5-7 days before expiration. Bad for the buyer. Great for the seller! Time value of the option âleaksâ faster and faster as expiration approaches. And right into the account of the seller. This is why I like to sell puts 1-2 weeks away from expiration. And I can do this with as little as a $2,000 margin account. And it's a limited risk trade with a high probability of winning. If you are new, donât sweat what the order entry image above means. Understand the concept for now. Order entry is easy and Iâll teach you that later. Bottom line. The buyer of the low probability out-of-the-money $187.50 put only has 1 way to win â TSLA falls well below $187.50. The seller has 3 ways to win: - TSLA can head lower, but as long as itâs above $187.50, the seller wins - TSLA trades sideways, the seller wins - And of course the seller wins if TSLA heads up Buying that low probability out-of-the-money put is betting TSLA will go down i.e. bearish. Which means the seller is neutral to bullish. Do this on recent earnings winners with strong guidance and probability increases more. So why on earth would anyone buy a $187.50 out-of-the-money put option on TSLA when MIT warns youâll lose money? Because most traders are not educated. But not you, youâre still reading. No option âbuyingâ in the $2,000 Small Account Journey. Time to turn the tables and start taking high probability trades. Iâll even send you my entries and exits before I get in and out of these trades. No strategy is perfect. I will have losses here. But this is the best one I know. NEW quarter 2 challenge starts Monday. Start your $2,000 Small Account Journey now and be ready to go. - Education included!Â
- Daily watchlist included! Â
- Alerts just BEFORE my entry and exit included! [Subscribe <]( Jason Bond More Great Stuff RagingBull, LLC
62 Calef Hwy. #233, Lee, NH 03861 [Manage your email subscriptions.]( DISCLAIMER: To more fully understand any Ragingbull.com, LLC ("RagingBull") subscription, website, application or other service ("Services"), please review our full disclaimer located at [(. FOR EDUCATIONAL AND INFORMATION PURPOSES ONLY; NOT INVESTMENT ADVICE. AnyRagingBull Service offered is for educational and informational purposes only and should NOT beconstrued as a securities-related offer or solicitation, or be relied upon as personalizedinvestment advice. RagingBull strongly recommends you consult a licensed or registered professional before making any investment decision. RESULTS PRESENTED NOT TYPICAL OR VERIFIED. RagingBull Services may contain information regarding the historical trading performance of RagingBull owners or employees, and/or testimonials of non-employees depicting profitability that are believed to be true based on the representations of the persons voluntarily providing the testimonial. However, subscribers' trading results have NOT been tracked or verified and past performance is not necessarily indicative of future results, and the results presented in this communication are NOT TYPICAL. Actual results will vary widely given a variety of factors such as experience, skill, risk mitigation practices, market dynamics and the amount of capital deployed. Investing in securities is speculative and carries a high degree of risk; you may lose some, all, or possibly more than your original investment. RAGINGBULL IS NOT AN INVESTMENT ADVISOR OR REGISTERED BROKER. Neither RagingBull nor any of its owners or employees is registered as a securities broker-dealer, broker, investment advisor(IA), or IA representative with the U.S. Securities and Exchange Commission, any state securitiesregulatory authority, or any self-regulatory organization. WE MAY HOLD SECURITIES DISCUSSED. RagingBull has not been paid directly or indirectly by the issuer of any security mentioned in the Services. However, Ragingbull.com, LLC, its owners, and itsemployees may purchase, sell, or hold long or short positions in securities of the companies mentioned inthis communication. If you have a current active subscription with Jason Bond Picks you will need to contact us here if you want to cancel your subscription. Opting out of emails does not remove you from your service at JasonBondPicks.com. In the event that any suit or action is instituted as a result of doing business with RagingBull.com, LLC and/or its affiliates or if any suit or action is necessary to enforce or interpret these Terms of Service, RagingBull.com, LLC shall be entitled to recover attorneysâ fees, costs and disbursements in addition to any other relief to which it may be entitled.