Option Trading: I got this email today asking for a trade:
“Allen,Would you consider offering me ONE BEST OPTION STRATEGY IDEA regarding CREE ? I suppose some form of spread is what I am thinking of.If you provide one ‘reasonably good results’ strategy , protecting principal, then I will sign up with you.Thanks for any consideration.”
“Thats not how we work.
but you want a trade, ok
sell the July 60/57.5 put spread
17 days to expiration cree looks strong so you should be safe. make about 7.7%.
but if this does not work, dont come to me saying i lost you money.
entering a trade is easy. managing trades is what separates the men from the boys.”
Option Trading Insights
Did I respond properly? Or did I do him a disservice? Please let me in the comments how I should respond to other requests like this in the future because I am truly at a loss.
DISCLAIMER: I am not giving you investment advice. Do NOT place the above trade unless you accept full responsibility for your actions. I will not be placing this trade myself, nor will I monitor it or post adjustments to the blog. I do not follow this stock and an not familiar with the way it moves. Proceed at your own risk.
New to Options Trading?
If you currently limit your asset mix to traditional investments, then you’re missing out on what could be a great tool and opportunity for growing and protecting your investments and worth.
The rewards of options investing can be far greater than the potential gains of buying or selling stock. However, the risks are also greater. For those of us who love the extra challenge of option investing, it is worth every minute of time you spend.