Adam Warner’s backing up the truck.
Off The Lows!
So what can we do when Ben and Hank run out of bullets? Which appears to have happened some time between yesterday and mid-August.
Well, Bubblevision has found a way to get some buying interest. Maria and Erin have agreed to "resolve their differences" whatever that means, after the close today, provided we’re up on the day.
OK, just kidding. The real plan is to make everyone open this Rally Monkey video and leave it running with the sound on until you start buying stock. I tried it and within a minute I said "make it stop" and just backed up the truck.
Getting more questions lately regarding specific trades/ideas/positions et. al. And I’m happy to answer them as best I can. But just want to emphasize, everybody’s goals and parameters and risk tolerance and whatnot are very different, so the correct answer for someone may be utterly terrible advice for another.
There are some principles that should apply to all though. The higher the volatility, the smaller and wider you need to trade, be it options or stock or both. If you are going to buy options (which will remain the right play until we actually see something resembling a rally imho) allocate it as if you bought (or sold) that share equivalence of stock. In other words, if let’s say it’s an $80 stock and you buy 10 calls with a delta of 50 and a strike price of 8, don’t look at it like you’re allocating $8000, convert it to how much stock it equates to. In this example, that’s $40,000. The options now effectively become a long with a stop, as opposed to a potential 100% wipeout.
