Aswath Damodaran — a NY Stern professor no less, who shares his valuation and corporate finance classes online. Because I’m apparently a finance nerd now, and I find this super cool, but also because it enables very interesting trading strategies. Stock prices are swingy and hard to predict, but I find it much easier to find conservative bounds for the price movement (especially on the down side). Most economic historians would find this argument provocative, to say the least, but Frank makes a compelling case for rethinking the early modern Asian economy. In that case you make a double profit: the premium which is yours no matter what, plus the difference between the price at which you bought the shares and the strike price. Even in case of loss, you will lose as much as the stock lost, minus all the premium you collected. Because of that, I can afford to pick a lower strike price (hence also a lower premium) and still make a respectable profit. Well, anyone really. Anyone that can buy options can also sell options. Note that OTM options are not worthless (before expiring) — they represent the potential for the stock price to move in desired direction until the expiration date.
It’s even possible to make money by trading OTM options that have never been ITM: it suffices to buy an OTM option, and sell it when the stock price has moved in the right direction (up for call, down for put) — so when the option is «less OTM». The experts say that with the right training, micromanagement can be avoided. You can only lose money in this strategy if the stock loses value. So the wheel strategy is sort of my base plan. Another difference from the wheel strategy is that my puts are not all cash-secured (this is only possible if you trade on margin). However, I must be wary of a particular risk: if the market turns and goes into a downtrend, I could potential be facing assignment on many/most of my puts, which would «blow my account» (since this is more money than I have because the puts are not cash-secured).
You sell cash-secured puts on the stocks you identified. Since my puts mostly don’t get called, this is fine. You get to keep the premium. In particular, I mostly sell puts, and I rarely get assigned. If the stock price is under the strike price, you can buy the stock and sell it (through the put option) for an instant markup. Beginners and advanced traders can improve their strategies without risk. The app also has a new mode, Trader’s Way, that submerges traders in the workings of a stock market. Users can easily start trading in financial market. You can re-start the process and again sell some puts on the stock (or on another stock if you prefer). I’m actively monitoring for such a risk — it can be avoided by buying back the puts while there is still time (which isn’t necessarily easy to do — trading psychology is fascinating and would probably deserve a blog post, a book review, or both).
You can insert a limit order where you want to automatically close the trade when you made a loss or profit. Even better, this has the magical property of letting you profit after a stock has run up in price. Jun Hao from the videos I linked before recommends a minimum of 2%. That comes up to a 24% of profit a year, which is fairly reasonable. Growing Wealth — the source of the videos linked before. Available as a browser extension and as a mobile app, MetaMask equips you with a key vault, secure login, token wallet, and token exchange-everything you need to manage your digital assets. This is why institutional investors and hedge funds keep their black box trading programs under lock and key. olymp trade deposit bonus promo code [recommended] Trade does not charge any fees for deposits, withdrawals, and trading fixed-time trades. What modes does olymp trade trading platform has? The platform has gained immense popularity and so did its currency, Ether. Full time day trading, and helping out with Olymp Trade wiki in my spare time to create an awesome platform for beginners. At the moment, Olymp Trade is one of the best Online Brokers for private trading.
