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Option Profits From Apple Iphone Event

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Manage episode 166614105 series 1063725
Content provided by Joshua Belanger. All podcast content including episodes, graphics, and podcast descriptions are uploaded and provided directly by Joshua Belanger or their podcast platform partner. If you believe someone is using your copyrighted work without your permission, you can follow the process outlined here https://ro.player.fm/legal.
Today was the day the iPhone 7 was unveiled to the world. I admit, I watched most of on my iPhone 6s Plus using Google's free internet at Starbucks during my mid-day break. While I walked upstairs to sit outside and drink my coffee while I streamed it, I noticed a dozen people watching the event on their devices as well. There's a lot of excitement about these events with Apple. These are binary events, and when there's uncertainty, there's opportunity. Looking at the options that expire this Friday, the market was pricing a $2.30 range with prices closing at $107.70, yesterday. Because the market knew this event was coming, the shorter dated options had more priced in risk. This is the #1 reason why so many lose money trading options. Some may buy a call because they think the iPhone 7 is going to blow everyone's mind, while others may think Apple's run is over and purchase a put. Either way, they are choosing a direction and buying option premium before this event which implied volatility is elevated. Long-term success with options isn't based on picking price direction. With stock, it's a 50/50 coin flip. With buying options the way most do, the probabilities will decrease against you. With prices closing at $107.70 in Apple last night, selling to open the 108/107 straddle, (technically a strangle because they're no half point strike options) would have brought in around $2.60 per transaction. The probabilities of this trade working were greater than picking a direction. With a standard margin account, it would have used around $2,000.00 of the buying power. After the dust was settled today, that 108/107 strangle closed at $2.10, which is a 20% ROI overnight. During the session, though, this position traded lower meaning it could be bought to close for more of profit. Tip: Because this was a strangle, this does carry more risk, and it's more advantageous to manage these types of positions at 25%. That means those who took the other side of buying options, most likely lost. Success with trading options works just like this over and over again. If you're still struggling to learn how to trade options and want to learn the right education and systems to become an independent money-making machine, then head over to our courses page and get started. http://www.OptionSIZZLE.com/Courses To your wealth, freedom and options! Joshua Belanger
  continue reading

59 episoade

Artwork
iconDistribuie
 
Manage episode 166614105 series 1063725
Content provided by Joshua Belanger. All podcast content including episodes, graphics, and podcast descriptions are uploaded and provided directly by Joshua Belanger or their podcast platform partner. If you believe someone is using your copyrighted work without your permission, you can follow the process outlined here https://ro.player.fm/legal.
Today was the day the iPhone 7 was unveiled to the world. I admit, I watched most of on my iPhone 6s Plus using Google's free internet at Starbucks during my mid-day break. While I walked upstairs to sit outside and drink my coffee while I streamed it, I noticed a dozen people watching the event on their devices as well. There's a lot of excitement about these events with Apple. These are binary events, and when there's uncertainty, there's opportunity. Looking at the options that expire this Friday, the market was pricing a $2.30 range with prices closing at $107.70, yesterday. Because the market knew this event was coming, the shorter dated options had more priced in risk. This is the #1 reason why so many lose money trading options. Some may buy a call because they think the iPhone 7 is going to blow everyone's mind, while others may think Apple's run is over and purchase a put. Either way, they are choosing a direction and buying option premium before this event which implied volatility is elevated. Long-term success with options isn't based on picking price direction. With stock, it's a 50/50 coin flip. With buying options the way most do, the probabilities will decrease against you. With prices closing at $107.70 in Apple last night, selling to open the 108/107 straddle, (technically a strangle because they're no half point strike options) would have brought in around $2.60 per transaction. The probabilities of this trade working were greater than picking a direction. With a standard margin account, it would have used around $2,000.00 of the buying power. After the dust was settled today, that 108/107 strangle closed at $2.10, which is a 20% ROI overnight. During the session, though, this position traded lower meaning it could be bought to close for more of profit. Tip: Because this was a strangle, this does carry more risk, and it's more advantageous to manage these types of positions at 25%. That means those who took the other side of buying options, most likely lost. Success with trading options works just like this over and over again. If you're still struggling to learn how to trade options and want to learn the right education and systems to become an independent money-making machine, then head over to our courses page and get started. http://www.OptionSIZZLE.com/Courses To your wealth, freedom and options! Joshua Belanger
  continue reading

59 episoade

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