A Tuesday Trade Edition: One of the most important concepts in trading is to review your work, and learn from the good and the bad. It’s critical to identify what’s working — to do more of it. Each week, you’ll get a trade from my trading journal, in which I explain my whole thought process from start to finish. Trading is all about finding something that works, and applying it, over and over again. That’s how you find trading success. So study up on this “Tuesday Trade” and let’s get to work.
Here’s the continuation from last week’s newsletter about how to take advantage of multiple options trades on the same ticker. We’ve already looked at the butterfly portion. So now let’s dive into both the debit spread and the long call.
Trade #2: A Call Debit Spread:
This call debit spread was a 65, 75 call debit spread that I got into for only $2.53 — very low-risk. The reward isn’t as great as a butterfly, but I wanted to go ahead and demonstrate the difference between a butterfly and debit spread, as I was teaching a class on that exact thing right around this time. With the debit spread I was able to get out for a profit of about $4.00 (which is pretty good, it’s not quite a double).
Trade #3: A Long Call:
The long call is going to be the riskiest of all. It’s also going to be the most expensive. The long call was $7.70, and I got out for $11.65. So I had a really decent return on this overall, it was about 50%. That’s exactly what I want to target on a long call.
All ’n all these 3 small trades have put me up $1,000 with a very minimal amount of risk. So if you’ve ever wondered how to take advantage of multiple options trades on the same ticker… this is it.
If being able to take advantage of these different trades on the same ticker interests you, don’t forget to check out “Stacked Profits” Class here. I show you exactly how I came up with the idea, and how you can use it in your trading life.