Options Alert
I rarely do this but I'm going to blog actual contracts ahead of time to the masses. This is usually a service reserved for Emerald Chasers out there who have taken the course. I know I have some new students out there as we recently visited Raleigh, NC to conduct the Basic Options Course and while they are in their infancy of trading I'm embedding this video to reinforce what they have just learned in their paper account. So feel free to paper trade these names along with us. (if trading TWTR go by the strikes I have listed below not those stated in the video.
I'm bullish on TWTR, JBLU, JNPR, and XLE (in order of bullish sentiment)...this is how I'm playing them:
TWTR buy +3 contracts of the 22 Sep (weeklys) $15.5/19 calls @ 1.13
(this means I'm buying the $15.5 strike and selling the $19 strike)
JBLU buy +1 contract of the 15 Sep $21/24 calls @ 1.48
(this means I'm buying the $21 strike and selling the $24 strike)
JNPR buy +2 contracts of the 22 Sep (weeklys) $27.5/30 calls @.95
(this means I'm buying the $27.5 strike and selling the $30 strike)
XLE buy +1 contract of the 22 Sep (weeklys) $65/68 call @ 1.29
(this means I'm buying the $65 strike and selling the $68 strike)
I want to paint an example of my short hand way which is most common on how to depict this order:
buy +1 TWTR 22 Sep 15.5/19 call @ 1.13 (this says everything I stated above)
When it's a monthly we don't state the date such as 15 Sep:
buy +1 JBLU Sep 21/24 call @ 1.48
If you are not yet approved for tier 2 standard margin with your broker and you wish to make a real money trade then I would play TWTR as such:
buy +2 TWTR 22 Sep 16.5 call @.83
If yet and still this is all jibberish to you please do not trade real money! Take our Basic Options Course so it makes sense and hopefully makes money.
As always thanks for following and paper trade, paper trade, paper trade!
