I want to follow up on one more concept from the Tesla trade I mentioned in the last Market Minute. This is not financial advice, but I am here to share 28 years of knowledge and hopefully help you move forward with your education.
Think of trading options as a tool chest. In your tool chest there is a hammer, a screwdriver, maybe a small saw. You open it up and ask yourself, which tool do I need for this job? A lot of people are asking me, can I still buy that July 410 call that is trading at $30 today? And the answer requires some honest math.
My roll from the June 400 to the July 410 call was just a roll for a very tiny debit on a very powerful winning trade. That gave me an even better edge for the last one fourth of the position I was holding. That is very different from saying I am buying July 410 calls today as a new trade.
Does that mean I throw in the towel and say there is no trade here? No. It means I look through my tool chest for something that works better for where we are today.
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