Now we got a ball game!!!!

Good day in the markets today, dang darn good day
Yes, that’s something I actually say….lol….

The Dow Jones closed up 1%
The S+P 500 closed up 0.55%
And the NASDAQ closed down 0.14%
That’s a good move off of this mornings lows

Except for Big Tech today was a throw a dart at the stock board kid of day, it didn’t start off like that but sure did end that way

WMT closed up 3.05%
SFM +3.35%
JPM +1.01%

How do we spell “Happy Campers” today???? COST
😁 😁 😁 😁 😁 😁 😁 😁 😁 😁 😁 😁 


There is soooooo much to unpack here its not even funny

1st: That second alert I sent out earlier titled “Correction” was to alert everyone of the error I typed on the original COST trade from this morning
If by some 1 in a gazillion chance that you placed it “Your Welcome”
You should be up enough to buy a small pony, the field to graze him and the barn to store him in… That play was not the intended play and I doubt seriously anyone took it, the price of entry on it was well over $6,400.00 per contract

We were not directionally biased this morning, we only wanted movement in one direction or the other and we got it

2nd: I placed a couple of different Strangles on COST today
And I adjusted them as the day progressed. With the strong day today I dropped the Short strike as mentioned and rode the Long

3rd: I’m adding this pic below to show live, with real money, not just some text book definition, the actual differences in Time

THIS IS IMPORTANT IF YOU LIKE USEFUL KNOWLEDGE THAT WORKS
This may be slightly confusing since I adjusted a couple of times today
I am going to simplify this as much as I can

Yes you are reading that right, up over 134% in one day…..
We made enough to buy a small pony today too, and the field for it, maybe just not the barn yet, that’s okay, he can stay in the living room for now 🙃 


There are 2 lessons in here
1st:
Look to the far right side
You will see APR 17, 2025
And you will see APR 4, 2025 down on the 3rd line
The bottom 2 lines are both for the 930 Strike
But with the TIME differences they percentage we are up varies drastically
That is because with the APR 4’s we are taking on much more risk
That is only 5 days away
Where as the APR 17’s we bought TIME
In Options TIME is safety for buyers
But it’s not free, we pay for that TIME

2nd:
These all started as Verticals of some kind
One was a Bull Call Spread
The other two were Strangles
Once the trade started going our way we dropped the short strike on all of them and then rode the Long as mentioned up above
It doesn’t always work out for the best, it’s not always a slam dunk, but when the trade is managed properly the odds are in our favor heavily
We initiated them because we did not have a defined direction, once COST broke out we were able to capitalize off it
This strategy is well suited for times of uncertainty, we here at theoptionscoach.net foresee using it more for right now

SFM
We entered today using the Strangle strategy
We have the 140 / 150 Strangle and intend to drop the short strike and go “Blind” if it continues to rise

Tomorrow morning don’t be surprised if we have some SFM and COST both highlighted
We’ll have to wait until morning to see

The Options Coach