Back at it.
Hi All! :
Most of you know that I suspended my newsletter services earlier this year. After living in the same house for 16 years, we finally sold it! That was the good news. The bad news was that our buyer only gave us 30 days to get out! We did it, and then came the process of getting settled and reorganized, along with all of life’s other responsibilities and a couple of major projects – I did not have the time to put out quality ideas and lessons.
Now, I am finally in a place where I can spend time at Deep Pocket Options again.
So, without wasting any more of your time – here goes:
I trade a lot of positions with underlying stocks/ETF’s priced from $2.50 all the way up to $600 a share. I absolutely do not recommend this – so, please don’t spread yourself out like that. If you have the experience to handle the immensely different challenges presented by those extremes – you will know it and probably not have any need for me.
It is important for you, as a trader developing your skills, to focus on one thing at a time. There are so many trading services that constantly recommend something new – and it all becomes nonsense. I am focusing today on a stock in the $20 range because you don’t need a Deep Pocket to successfully trade a company like GE ($20.99). During 2012 GE has traded between 18 and 23. The options have large numbers of open contracts, so we can easily trade around the options.
GE recently moved down from 23 to 20 and now appears to be consolidating, if not recovering. It looks to be a good entry point with MACD showing a cross over. However, GE is still weak and could easily move lower. Let’s start with one contract and build a position over time, learning what we can about trade management.
I am entering an order to sell one NOV5 12 $21 put at 0.20. Translation: I am trying to sell the weekly (expiring this Friday) $21 put for 20 cents. It is priced at .17 right now.
I have no position in GE – this is an opening trade and the start of a new trade management lesson. I hope you will join me!