Options

Call

Put

A contract betwee two parties to exchange a stock at a "strike" price by a predetermined date.

The buyer

has the right to buy the stock at the strike price by the future date

The seller

has the obligation to sell the stock to the buyer at the strike price if the buyer exercises the option

Insurance

A contract to exchange a stock at a "strike" price, by a predetermined date

The buyer

has the right to sell the stock at the strike price by the future date

The seller

Has the obligation to buy the stock from the buyer at the strike price if the buyer exercises the option

gain

exercising the option when it is deep in the money

going to the market and taking the opposite position

or waiting until expiry and collecting the difference between the asset price and the strike price

the amount of gain (or loss) is marked to market (i.e. credited or debited) in the investor's account at the end of each trading day

Strategies

Call

Put

Look for Opportunities

when the market falls strongly

throw short puts

stay 150 points away on the put side

use up to 50%-70% of your assets, keep the rest as cash

hedge 20%-25% on futures

Several Small Trades

Max Risk per trade

2% of your account size

Don't worry about trying to save on commissions

Steps

Volatility & Strategy: understand where implied volatility is on a particular stock and select the right strategy

Wait for profits

If volatility is extremely high, you shouldn't be buying options, but selling them

Options Volatility

exit the trade only when it makes 40-60% of the total possible profit

routine

2 times a day, morning & afternoon, once a week

links

gráficos

on liquid stocks with a high chance of success

schedule

small trades

stacking

5 rules

5 rules

schedule

Current strategy = stacking