Paper Trade with Me

Just closed a very nice paper trade in Abbvie Inc (ABBV) for a gain of $29,900 in almost a month. I entered the trade on 10 Jan when ABBV closed at $99.69. My strategy was: I bought the 23 Feb 99 call at $3.45. What does this last sentence even mean?

It means that I was making a bullish speculation that the stock would remain over $99 with some growth from 10 Jan 2018 through 23 Feb 2018 and my cost was $3.45 per share for this $100 stock yet I had to buy 100 shares as there are 100 shares to one contract. Well I bought 20 contracts for a risk of $6,900. Then I sold those 20 contracts moments ago for $18.40 per share times 100 shares times 20 contracts for a gross of $36,800.

Well how did I only pay $3.45 for a stock that was trading near $100? That's the power of options trading as it is a derivative of the underlying stock. What's really cool is it not only cost less to trade but you make more when you are right. Lets look at the underlying move versus the move in my position. The stock made a move from $99.69 on 10 Jan to $117.11 today when I sold; that's a 17.47% move yet my paper account made a 433.33% return! Crazy right...but that's why I'm letting you know it's out there.

Please do not trade options if you don't know what you're doing as they have many factors to them that aren't spelled out.

Did Emerald Chase inform any one of this opportunity? Heck yeah! Our emerald chasers knew...see the Options Alert via WhatsApp to Greg in Germany...