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Mike B
10:23
Volume over average the first hour
Mentor Mike
10:22
Close Calvin!
Calvin J
10:22
doubles in 30 min of the open
Mentor Mike
10:20
He hasn't discussed ACB yet.  He did mention he was closing out his Money Press on NVDA
Bill Doyle
10:20
I had to log back in after the break, so I missed the first few minutes. Did Preston talk about the ACB Money Press yet?
Mentor Mike
10:17
Yes on the Mini Money Press he will sell at-the-money puts and buy some protection slightly out of the money.  If he is just rolling the spread into a one week credit spread, you can still go slightly out of the money to get a little bit of cushion.
Brian
10:16
Re: Armin, If I'm not mistaken he sells his weekly puts at the money. Maybe Mike can confirm.
Mentor Mike
10:16
Yes correct.  He closed out of NVDA.
Rick Berry
10:16
So P just said he closed the NVDA MP?
Mentor Mike
10:11
Good question Armin!
10:10
We have two ways to manage a SOB that isn't cooperating.  1)  Turn it in to a one week credit spread, just roll out the spread into the next week's options.  2) Preston likes to close out half of the contracts, then turn the other half into a "mini Money Press".  (sell weekly puts against put protection a couple months out in time)
Armin
10:09
What is the best way to get out of the trade when it goes against you.
Mentor Mike
10:08
I'm having P run through the example again on MMM
john
10:07
on 3m what call sold and what call buy? i cant read his screen?
Mentor Mike
10:04
I'm not sure Rick... I'm guessing that will be different from broker to broker.  I'd just give your broker a call and they can probably help you out.
Rick Berry
10:03
What was trick on placing limit order when initially platform requires .05 or .1 cent numbers?
Mentor Mike
If it gets close to the short strike price then you can close it to be safe... we usually wait until the end of the trading day.
9:57
If the sold call (in this case, some are the sold put) is safely out of the money then you can just let it expire.
Steven B
9:56
So you would not close out of 3M today, instead just let it close or expire ?
Mentor Mike
9:53
John, the MMM trade he was discussing was the Sleepover Bandit trade he started yesterday.  It is set to expire today at the end of the day.  So you wouldn't want to do anything with that one today
john
9:52
what call strikes on 3m.  do u sell  and buy over by 5?
Mentor Mike
9:52
It might help to make the video player 'full screen' on your end to see the positions more clearly
9:25
** Taking a 15 minute break and we will be starting up again after that **
9:22
For the ROI you look at the amount you are bringing in on the short put vs. the cost of the spread.   CREDIT / MARGIN REQUIREMENT
Mark
9:20
On both of the examples you gave how would you assess the ROI
Mentor Mike
9:20
BMY
Guest
9:20
What is the chart Maggie's working with?
Mentor Mike
9:20
I'm having Maggie explain this further Cindy
cindy
9:19
what does Maggie mean 'playing the down' on BMY?
Mentor Mike
9:17
If you tighten the spread and sell the 100 put, but buy the 98 put for example, you only have a $200 margin requirement.  However the 98 put would be more expensive so your costs go up as well, but you can look at the ROI and see what makes the most sense
9:16
The risk on a spread is determined between the short and long strike price... so if you are selling the 100 put and buying the 95 put, you have a 5.00 spread where the broker wants to hold $500 in margin
Tom
9:15
so Maggie's risk is determined by the short spread.  If you have a 50k account, you can sell 20 contracts, but the long put only allows 3 contracts.  So you buy 20 puts along with your 20 shorts?
Mentor Mike
9:15
Hahah.  I started noticing and there are at least 4-5 coughers... must be cold or allergy season or something!
Tim
9:14
Sounds like our coughing prayers did not work!
Mentor Mike
8:49
Yes it should have been emailed out.  Double-check your spam/junk folder if you didn't see it.
Rose M
8:49
The Study Guide for both days was sent to me in the same Email as the Live Stream access info information. (on April 24)
Mentor Mike
(We will all have to catch that portion on the replay. Ha)
8:48
I ran out for a few minutes when we lost power in a few power strips so I missed part of that discussion...
Guest
8:47
Bill was doing long strangle and selling the short term atm straddle right?
Mentor Mike
8:45
I'm pretty sure it was long strangles... short strangles are obviously huge margin hogs (naked options on both sides) and carry some decent risk.
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