Hey guys, it looks like airlines will be having another big day today. Premarket gains are near 10%. Definitely consider buying stock.
HOWEVER........
Today, let's up the ante. I want some of you to purchase your first Stock Option. Specifically, we will be buying a call. Basically, what we will be doing is saying I believe that "insert stock name here" will be going up and I want the "option" to buy it at a certain price. That certain price is called a "strike price."
Here is the play. (updated at 9:38am) 06.05.2020
- Go to your trading platform,
- Select either Delta, Sprint, or American Airlines.
- Select trade>>options.
- You want to "buy" a "call."
- Look for the expiration date of June 19 or June 26.
- If you selected Delta go with a $37.00 or $38.00 call. If you selected American Airlines go with a $22.00 or $23.00 call. If you selected Spirit go with a $25 or $26 call.
- NOTE**** Option contracts are sold y the 100's. So, if you see a call price of 73 cents. To purchase one call contract will cost you $73.00.
- Note**** Before you get started, write down your risk tolerance and your exit prices. Meaning if you spend $100.00, how much are you willing to lose before you throw in the towel. Stocks are not guaranteed. BUT, you can mitigate your loses so that you always make more than you lose. I would suggest 10% - 20%. If you need help calculating, hit me up and I will assist you.
- Note****Before you get started, know your REALISTIC profit goal. For example, if you spent $100.00 it is unrealistic to expect $1000.00. But if you spent $100.00 and you made $20 to $50 today...great. What I do is set my goal. If the stock goes over, I let it ride until I see it start to dip in ANY capacity. You can always sell and buy another. But, if you try to be greedy and hang on to it as it is falling "praying" it will go back up, you are now a gambler and not a trader.
My plays for the day:
Yesterday before closing, I bought 100 DAL $33 Call options @$1.80. Today at the opening, I will be buying 100 DAL $20 Call options @$1.35 (tentatively). The price could change at opening. I have 1 active SAVE (Spirit) Call Option which is set to expire on the 19th of June. It is a $15.00 call I bought at 74 cent. I f'd up on this one. I accidentally selected 1 instead of 100. Now the price is $6.35 which is a 758% increase. I lost out on about $6K. No worries, it happens.
I will try to update this before trading opens today which will affect the suggested option strike prices. Good luck everyone. I am hoping to hear all of you sharing that you made money today. Again, remember that none of this is guaranteed. You have to take losses to realize gains. EVERYONE sees losses at some point, do not think that you are special.