Ripping The Face Off The Stock Market. By Gregory Mannarino

in money •  8 years ago 

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In the past two weeks alone, if you are one of the many thousands of people who follow my stock picks which I post (for free) on my website TradersChoice.net frankly you have ripped the face off of the stock market.

Last week, in fact the day before the 370 point drop in the Dow Jones industrial average I had suggested people enter a straddle position on ticker SPY. If you had entered that position at the time I posted it, watched for a clear sign of direction at the market open the next day and closed the call side of the straddle-to say the least you made yourself a very nice profit.

This past week, in fact at the market open (the very day) that both crude oil and the energy sector plunged I had suggested (posted to my website TradersChoice.net) taking up a straddle position on ticker USO and ticker XLE.
Here again, if you had entered these positions, watched for direction, and closed the call side of the straddle you would've made huge profit as crude oil fell 5%, in the energy sector fell over 2 1/2%.

The reason why I am outlining all of this for you is simple.
There seems to be many of you who do not believe in opening your positions with a straddle. I am writing this article specifically to show you how powerful opening every single one of your positions can be using a straddle.

Here is another article I wrote which outlines further how to profit by using a straddle strategy when entering positions.
Click here: https://steemit.com/money/@marketreport/the-best-and-most-profitable-stock-trading-tip-you-will-ever-get-by-gregory-mannarino

Here is also a link to my website TradersChoice.net where you can follow my free stock picks.
I post new positions on this page the moment I enter the position myself.
Click here: https://traderschoice.net/The-Equity-Lists.html

If you are interested in learning more about how to rip the face off this market, check out my other publications, click here: http://www.lulu.com/spotlight/thegameisrigged

In summary.
Opening a position using a straddle is one of the best ways a trader can capitalize on the price action of an equity.

Gregory Mannarino
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I'm still a little confused here.
Let's say I bought the straddle position on SPY.
The market dives 2%. Thus, I sell my call position at a loss, but I hold my put, which is making money.
A few days later my put position is back where it started. It's still open and I'm now at risk if the market continues to go up. How does this make me money? In the mean time I'm dealing with time decay on my open position.

I buy calls and then sell calls to hedge. You collect the decay. If I thought the market was going down, I'd buy puts and sell puts. I can collect the decay, and if the market turns against me my "short positions" the sold call or put will increase in price. When the market starts going my way, I cover or buy back my shorts and apply that to the long side. If you buy a call and a put, I usually just hold on to both until I know the market is going my direction. If you had a call and a put and the market goes down, the profit from the put would eventually be greater than the total invested in the call. So I will let the call expire worthless instead of selling, because it might rally back up before expiration.

Great explanation. Do you have resources or more comments like this? Write more. I must learn.

That's interesting....however, I think it would depend on how far the price fell for the Put to be worth more than the Call, right? (I need to think more on that one.) But I appreciate your other advice as well. I can't believe I never thought of that. Buy puts AND sell puts. That definitely catches my interest. Needless to say, I've only been dabbling in Options for about a year. I wish I had learned more about them 20 years ago. Certainly saves me headaches and stress.

For trading calls on silver, please check my blog guys :)

Joined by advice of Greg.

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Greg, totally agree, straddles are a really great way to profit from volatile markets especially if one is not sure of which direction the market is headed.

Gregory sure can come up with some great titles...
If you get a chance, read a few of my Blogs concerning Pocket Change... Thanks...
@pocketechange

You have some articles of interest to me I will go thru, just followed you as well, best of luck going forward!

Greg did I just missed it or did you take a day off yesterday? Good for you if you did! You always come to the forefront with postive moves and suggestion. Again thanks for what you do my friend

Very wise and sound advice. What usually takes years to learn from experience you give away for free. Keep up the great work!

In another day, I have had the market rip my face off with unexpected moves up and down. Your strategy is fine if you have the time to watch the markets closely.

Great pics Greg and good info as always! Thanks for all that you do. Upvote and resteem. jbcoin

Little concerned here Greg. I haven't seen you in a few days now. Hope everything is ok? I may have to bit the bullet and go to YouTube and see what's happening with you. DR

Hey Gregory, hope you're doing well. Haven't heard anything in a while so just hope you had a great Memorial weekend and that everything is going alright. take care!!

missed you yesterday...

What! No comments on crypto and silver or gold???? 😂
Yeah missed you yesterday, that's not like you. But like the thousand other followers, enjoy the post and videos.

HI Greg, thanks for the updates!!

Very nice and thank you so much for helping out the common folk. This world is full of takers. It's nice to see a modern day Robin Hood! Preeeeesh!

When do we get the taken items from prince john stillE? ha

Listening to your videos and reading your steemit posts helps to educate. Thanks for the knowledge. I missed you Friday. I was there and I did not see you. Sad. Continue teaching the lion ways.

Hi Greg, isn't it the same if you just wait to see what direction the trade is going instead of placing a straddle? Because both ways you'd come down to the same amount of profits, correct?

Where are you Greg? I hope all is ok?

I was wondering the same thing....

Hes back, have you seen his latest vid?

Looking forward to your return, hopefully everything's ok over there man. Hope you're not pregnant or something. 🤔 Also would like to hear your thoughts on the article i just posted. Probably the most interesting one i've read in a week!

Greg is always on time thank you for being engaged and helping alot of people ive been following you since 2011.

I need a different trading platform. I'm using Scottrade now. Scottrade doesn't allow Uncovered Calls. I would need to buy 100 shares of the underlying equity before purchasing one contract. What's a better trading platform, particularly that allows me to trade when out of the USA?
Because of the Patriot Act Bravo Sierra, if I live out of the U.S. for more than 6 months I'm not allowed to trade with Scottrade anyway.

  ·  8 years ago (edited)

Rock On

There is usually a harsh learning curve starting out. That's okay as long as we learn from our mistakes, and press on. Thankfully Gregory can shorten that curve. Good on him!

Thanx... re-steemed

LOVE THE UPDATE

upvoted i also follow you my friend i like your articles
how long you been here ?

  ·  8 years ago (edited)

Greg gives you excellent advice. Sometimes I think he has a crystal ball!

OK I'll go to the dentist tomorrow and post my letter to Questrade's head office in Toronto if he wants to sign my this paper. People here are afraid they think it's fraud. I went to pharma walmart and she said she's not interested into signing my paper. Wish me luck for tomorrow! Thank you

Nice use of straddling.

Hi Gregory, Thanks so much for sharing this information with the masses. I am up voting and following!

steem it is badd ass you tube poo tube

Greg, I am concerned that I am no longer receiving your feed as a follower and advocate. Can you check this please and thank you good sir!

But, but, but why not just WAIT until you see the market direction, anyway, and THEN buy/sell? What is the advantage of a straddle? Just make one strong definite decision, not sitting on the fence.

Greg where are you ??? Did you quit .......

He went out to buy pants. :)
I am worried though, he never skips days like this and is completely absent from steemit as well.

Haha, hope hes having a good rest up pants or not, I have also been wondering where he's at. I did come across a post where it was said an email was sent to him and also that he is unwell atm

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