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Orange County 2021
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Mentor Mike
2:57
You can't use an IRA unfortunately... you can't use any margin on an IRA account
Guest
2:57
Can you do this in an IRA?
Mentor Mike
2:56
We call it our "portfolio margin trade" or a "dynamic collar"
Guest
2:56
what do you call this kind of trade?
Nathan D.
2:54
Preston has officially blown my mind!
Mentor Mike
2:54
Yes exactly!  But if you roll the sold weekly call each Friday you rarely will get your stock position called away
wesley
2:53
If you are called out in a week, do you just rebuy the shares next week?
Mentor Mike
2:52
Good question!  You need to get a special margin account called Portfolio Margin that your broker usually has you apply for.  When you have this type of account, they identify the protection and your available buying power only gets impacted by that amount he is showing
Steve
2:51
What would the sequence be that the broker recognizes to activate margin and recognize the amount needed? Buy puts first then stock?
Mentor Mike
2:49
Yes correct!  We buy puts 3-6 months out and then sell the weekly calls.  Similar to the mindset of a Money Press
Lu
2:49
on his MRK example he bought a PUT but sell weekly CALLS?  is that right?
Mentor Mike
2:45
That is a pretty low/competitive rate... anything around 4% to 6% is about what we've been seeing lately
Guest
2:44
What is a decent Margin rate? I recently reduced it from 8 to 4.25
Mentor Mike
2:44
I said you only pay interest when you USE margin... so if you invest your funded 100k you don't pay interest on that.  If you invest 150k, 50k over your funds, you'd pay interest on that 50k
danpeterson3305@me.com
2:43
can't hear Mike's comments
Mentor Mike
2:43
Good question!  WIth this approach, you get the leverage of buying the call without some of the downsides (time decay on the call, delta, etc.)
Guest
2:42
Since a call = stock + put, how is this better than just owning a call and selling weekly calls against it? Is the only real benefit to collect the dividends, or is there something else?
Mentor Mike
2:27
We are now live!  If your feed isn't coming through, try refreshing your screen!
2:26
We are about to get started again!
2:04
If you check out MaggieMastermindProject.com you can see her service that is part of Traders Edge Network
Bill Ikard
2:03
How can I get in touch with Maggie...does she have a service i can subscribe to
Mentor Mike
2:00
Yep that should work!  When clicking on "Call Spread" it should give you a Buy to Open leg and a Sell to Open leg to enter both at the same time!
Bill Ikard
2:00
When I use Street Smart by Schwab do i click on the Call Spread to do the Microsoft trade of buying a long call and selling a weekly?
Mentor Mike
1:18
We got a little off on the agenda, but just about to break for lunch!  We start back up again at 1:15 pm
1:00
He will lay out the trade now as an example
Guest
12:59
MSFT August 260 calls
12:58
sell next weeks 265 or 267.50 calls
Mentor Mike
12:57
The Small Account Mastery Series (SAMS) is something we do once a year... we just started this one about 6 weeks ago.  So we are more than half way through, but next year we will email all of you about when we start the next series!
Guest
12:56
Is the small account shown on the website? How can we follow it?
Mentor Mike
12:54
Yes!  If you aren't a WOW Insider member, we are teaching/talking more about that approach in the updates, Friday webinars, etc.
dario
12:54
do you  recomend any traing similar to the money press for selling call options
Christopher
12:54
Ha Ha Preston cracks me up!
Mentor Mike
12:42
It is also influenced by market conditions... more volatility leads to more explosive moves that favors the call buy/call spread approach over the Money Press.  Other times we get in a nice steady trend and we'd favor the Money Press.
Guest
12:41
While short term it is very bullish, sounds better
Mentor Mike
12:38
Yes definitely!  The main difference is if we think the stock is really bullish and might make a strong push higher in a short period of time, then we look at the call buy approach.  (MP is for more slightly bullish/neutral stocks)
Guest
12:36
I'm having some trouble determining what the line is between using MP vs. buying longer term calls. Will there be any explanation/clarification on that topic?
Mentor Mike
12:23
No we don't really look at it
Dave
12:23
On Yahoo's site, does Preston ever pay attention to the Fair Value gauge? I've never heard him mention it.
Mentor Mike
12:20
On PINS, we bought a long call out in time to catch the upside appreciation if the stock moves higher.  Then we will look to sell calls for a little income/to hedge a sideways or down week from time to time.  We should discuss this a little more throughout the event today/tomorrow
CARLOS
12:17
Preston mentioned the PINS call spread. Is he going to explain it? if not can you? upside / downside scenarios. Tks
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