The WalMart Trade Begins……
I have a system for entering a trade. This system has many subtle decision points and is thoroughly explained to all subscribers.
The WalMart trade begins like this:
On January 6 I sold one weekly 78 Put for 30 cents. On the same day, I also sold another for 33 cents and a third for 36 cents. The average price for selling these 3 puts was 33 cents, so I took in $99. Today, January 7, I sold another for 39 cents. Total cash taken in is now $138.
The goal for a short put options trade is to keep as much of the cash as possible, using management skills. The option contract that I sold expires in 3 days. But, for now, I am still in the position-building phase of this trade. Note that I only sold one contract at a time. I rarely sell more than one at any price point, preferring to average into a position over time, attempting to get the best possible price.
The plan for tomorrow? Most likely I’ll add to the position, but that depends. The market will open in the morning and that becomes the day’s first decision point. I will assess the market direction, analyze the market price for WMT and it’s relationship to my strike price, and then decide where to place the day’s orders.
Subscribers get all the decision-making details and learn how I trade options. It’s only $20 a month – and you will learn how to trade options profitably.