01-04-2021, 08:09 PM
(01-04-2021, 02:24 PM)john Wrote: I guess for better or worse I have started to Look at each "trade" as a "deal" rather then an "investment"Good because I hope I never discourage anyone here by being overly critical. Nobody is ever going to go to the poor house because they missed a 100 share T entry or exit by a buck.
The above potential monthly returns are what prompted me to do it.
Would there have been other, better ways to trade this? Sure, possibly
I am here to serve as an example time will tell if its good or bad.
I enjoy the friendly back and forth
IMO T is a good conservative stock to learn options. You won't get bit very hard at the correct end of the trading range. I have about ten conservative tickers on the radar at all times and I try to wait for a few to be in the prime zone so I can pounce with a bigger bet. When in a doubt a small bet and stay a little farther out of the money. Paul mentioned in another thread he is very conservative by nature. That's OK, he can enter mostly very conservative options, but you have to know when it's time to step it up a bit and take a bit of a chance. KO drops well under $50, you gotta know when it's time to make some folding money while the risk reward is there. I strongly prefer to sell some of my options close to the money. The premiums are much larger when you are actual risk of being assigned. You can do that and still keep an overall conservative bias in your trades. I also sell a few options on lower dollar stocks and get a 5% option return some months. You have to be very willing to own those stocks. I've successfully sold options 5-10 times on some tickers with good premiums. The market will make you own them or take a loss on your option eventually.
After all this said, forcing a trade is trouble sooner rather than later. When I am looking to be conservative, I am usually selling options on a day when the premium is going up. Like you said John, you meant to do this last week when it was a better bet.