That's why I focus on tickers around $1 where I'm seling larg amount of contarcts, but on strike 1 or 0.5.... My risk is when the share price go negative...Opportunities are not all the time, but there are...pretty often
Mark, thanks for sharing. I’m doing the wheel trades. Have been since July of this year. To minimize risk I only trade dividend contenders and aristocrats. I try to go 10% below the current underlying price at time of entry and get a minimum of 12% AROI. so far it is working well. I’ve been put on one trade and I’m selling calls to reduce cost basis. Have a couple more that I’ve rolled out to new expiration... I believe it’s a good strategy. Like you said all trades have risk. With closed trades I’m at 23.6% AROI since I started.
@@markjackson4085 I agree. I was strictly talking about trading volatile stocks. I am in a collar trade with Tesla. My own opinion is I don't trade penny stocks or any other volatile stock without owning a put strategy.
I made the same trade lol CRBP was and still is a highly speculative stock. Reason being is their entire drug line up is all about trying to use CBD as a drug therapy for some rare diseases. They originally had 3 stage 3 clinical trial drugs they were waiting to report results on (which is why the premiums were so high). The first drug had the most commercial promise but study results showed it was a dud, so it dropped like a rock to $2. The second drug also turned out to be a dud, and it dropped like a rock again. Now the only promise the company has is this 3rd drug. It's highly likely this 3rd drug will also be a dud and there's a big chance the company won't be around next year since they've been burning cash.
Sorry for your loss, Mark! What about you go far out, let's say a year, and sell a more "expensive" call with the strike price that you bought the shares with or a bit more and just forget about them?
Ouch. Sounds like the stock you choose is pretty volatile, especially if they are dependent on a vaccine. I mainly sell covered calls on well established companies that preferably have a dividend. What is your process for picking stocks?
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That's why I focus on tickers around $1 where I'm seling larg amount of contarcts, but on strike 1 or 0.5.... My risk is when the share price go negative...Opportunities are not all the time, but there are...pretty often
...great video anyway
Hi Mark.
Now is Nov of 2021 and if you'd kept turning the wheel, you would have had a good profit now... Maybe :)
Mark, thanks for sharing. I’m doing the wheel trades. Have been since July of this year. To minimize risk I only trade dividend contenders and aristocrats. I try to go 10% below the current underlying price at time of entry and get a minimum of 12% AROI. so far it is working well. I’ve been put on one trade and I’m selling calls to reduce cost basis. Have a couple more that I’ve rolled out to new expiration... I believe it’s a good strategy. Like you said all trades have risk. With closed trades I’m at 23.6% AROI since I started.
Mark
Thought about this same subject with Tesla going into earrings. Had to buy a put.
Tesla would be quite risky for this kind of strategy. Good luck.
@@markjackson4085 I agree. I was strictly talking about trading volatile stocks. I am in a collar trade with Tesla. My own opinion is I don't trade penny stocks or any other volatile stock without owning a put strategy.
Best strategy is strangle in indexes ,if it goes wrong : exit , adjustment or stop loss 2x take profit.take profit 50% of max profit.
Sounds good
I made the same trade lol CRBP was and still is a highly speculative stock. Reason being is their entire drug line up is all about trying to use CBD as a drug therapy for some rare diseases. They originally had 3 stage 3 clinical trial drugs they were waiting to report results on (which is why the premiums were so high). The first drug had the most commercial promise but study results showed it was a dud, so it dropped like a rock to $2. The second drug also turned out to be a dud, and it dropped like a rock again. Now the only promise the company has is this 3rd drug. It's highly likely this 3rd drug will also be a dud and there's a big chance the company won't be around next year since they've been burning cash.
Sorry for your loss, Mark!
What about you go far out, let's say a year, and sell a more "expensive" call with the strike price that you bought the shares with or a bit more and just forget about them?
Probably a good way to go.
Ouch. Sounds like the stock you choose is pretty volatile, especially if they are dependent on a vaccine. I mainly sell covered calls on well established companies that preferably have a dividend. What is your process for picking stocks?
I choose options with high IV and keep my risk under 2%. I plan to do a video in the future sometime soon.