Here Ye, Here Ye

“Stonks” closed green today, really green
Most of the time it’s Wednesdays that I do a Special Edition
But today is far to strong to pass up

What are your Super Powers? I’ve asked before..
One of mine ( according to all of my friends ) is that I know every single word to every single great Italian Mob movie ever made
The Godfather trilogy
The Oceans trilogy
Donnie Brasco
Goodfellas
You name it, I can recite them all, word by word

In “The Godfather, Part III” Al Pacino’s “Michael Corleone” is having a “finding of conscience” and wants out as leader of the Mob
Easier said than done……

Sunday night I wrote that SFM was a hold, no new adds but don’t sell
Well today SFM closed up 5.57%
Yes, SFM up, up, up 5.57% in one day

Here’s how the rest of the team did today
AMZN +2.47%
CAT +3.20% ( meow )
SN +0.65% was down over 2% at one point but made its way back
COST +0.32%

Others we like and sometimes play
GE +2.54%
HD +2.21%
META +1.01%
TSLA -0.57% ( made a good recovery rising from being down 4% )

GE reports earnings this Thursday

Banks
Bac +0.28%
C +2.10%
JPM +1.49%
Today we added JPM with Blind Calls for MAR that were discussed in last nights edition of theoptionscoach.net 

I want to talk about a very very very HIGH RISK ADVANCED Options strategy
If a trader is not a highly advanced, there is no reason to even think, consider or anything else with this strat
This strategy is for HIGHLY EXPERIENCED, HIGHLY PROVEN, ADVANCED Options TRADERS ONLY
One should have an extremely elevated understanding and education in the mechanics and metrics of Options pricing before even ever considering this HIGH RISK strat
This strategy carries an EXTREMELY HIGH RISK OF LOSS and there can be an almost ZERO CHANCE of recovery if it goes against you
Meaning if the trade doesn’t go your way, it’s “Game Over”

It’s called a Reverse Collar
Your brokerage will determine if you are even able to place one due to capital restrictions and your Options level
That does not mean just because you're approved you should try this if you do not know how to manually price and manage Options
I.V. Rankings matter tremendously with this strategy

I did a few of those today, they work best on days like today
Lets say your stock XYZ is trading for $100.00
You could sell a Put at the 90 Strike
You could then buy a Call at the 110 Strike
At this point you are “Delta Neutral” or should be
You obviously hold an extremely bullish outlook like we had today
If your stock goes north from $100.00 you get paid
If your stock goes south from $100.00 you lose, you will lose a lot and quite possibly all of it. You could even possibly receive a “Margin Call” from your brokerage firm demanding you place additional funds into your account that day or close the trade with what ever loss you are currently down at that time… When that occurs, and it will if you don’t have the funds to cover it, you can’t ride it out to try and make it back up. At that point what ever money is gone is then gone

Saying “No Way” yet? You should be… That is why the vast majority of the trades that we do here are protected ( The Bull Call Spreads ) not only from large losses, but from other issues that could occur

Very few days are going to warrant taking that kind of risk, but today was one of them, and as “Uncle Warren” likes to say “Risk comes from not knowing what you are doing”

Options are a lot like many things in life
Are you adaptable? Willing to learn? Willing to grow?
No pun intended but we have options for our Options, and if we want to grow we should be adaptable and willing to learn every chance we get
Do you remember me making the “Uncle Rico” reference the other day 😃 
And “Napoleon Dynamite?”
Timing, I couldn’t make this up if I had to, lol
Right now there are dozens if not hundreds of GIF’s against the Kansas City Chiefs and Pat Mahomes
….
😃 
#GoChiefs!!!!!!!!!!!

The Options Coach