Merv's Trades
Option Trade Alerts are reports about my trades so you can compare your analysis of what happened with my analysis. I will then give you my suggestions about what changes if any should be made in the options positions.
Once you've gone through this first training session, become familiar with the terminology, have your online portfolio up and running, and have watched one trading strategy for a two-week period, we will begin to accelerate the learning process. First we will manipulate the original options positions (covered call writing) if appropriate, and then, two-weeks later, we'll began to test out other option strategies.
The examples that I'm going to give you deal with 1000 shares of stock and 10 options. 10 options is the equivalent of 1000 shares of stock. But when you are actually trading for yourself, you can deal with as few as 100 shares of stock (one option) or any increment of one hundred. And of course, you can deal with more than 10 options at a time.
Once you log in to Portfolio Monitor, you would be able to watch Merv\'s portfolio and see his trades.
Please check some of Merv's positions below:
WHEN ALL THE PREMIUM IS “SUCKED OUT” OF A SHORT POSITION, IT TURNS GREEN, WHICH ALERTS YOU TO THE FACT THAT YOU PROBABLY SHOULD BUY BACK THE SHORT POSITION AND SELL A NEW CALL. WHEN THE POSITION IS ABOUT TO EXPIRE IT TURNS RED. AND IF A POSITION GOES IN THE MONEY, IT TURNS ORANGE. This color coding makes option writing much easier to track.
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