Hey AI Option Gurus,
Welcome to my Sep 2024 AI Options newsletter!
I hope your trading journey is going strong and your weekly/monthly income is rolling in. Let me help you maximize your option premiums and ensure you’re trading smartly and efficiently.
Let’s dive in!
Remember: Keep it Simple
Yes, options trading has a lot of moving parts, strategies, and nuances. But here’s my best advice: Keep your trading principles simple. Don’t overcomplicate things!
Here's the golden rule to follow:
🛑 Red Days = Sell Puts and Buy Calls
✅ Green Days = Buy back sold Puts, Sell Calls, and Sell to close bought Calls
Understanding Delta: Use it to maximize your income
Let’s talk ∂ (delta). Delta measures how much an option’s price will change with a $1 move in the underlying stock. Delta values range from -1 to +1.
For example, if a call option has a delta of 0.50 (or 50 delta), and the stock price increases by $1, the option’s price will increase by 50 cents. Delta is crucial in your trading toolkit, so make sure you’re familiar with it.
It is also coincidentally the "probability" of the strike price being met on the expiry date.
So if a strike price of $95 for Oct 18 has a delta of 15, that means there is an approximate 15% chance that on Oct 18 the stock will be at $95 price.
The delta also decides how much premium you can earn.
Use ∂ delta to manage your risk and maximize your income!
Options trading can seem complex at times, but when you break it down and stick to simple rules, you’ll find that it’s a fantastic way to generate consistent income. Keep an eye on market conditions, know when to strike, and most importantly, follow the principles we’ve covered.
If you want to review your trades and get real-time ideas for new option trades then join me weekly on Tuesdays and Thursdays at 7.30 am PST for the 30-minute Weekly Option Review (WOR) session.
You can sign up and book your weekly classes here: www.appmosis.com/subscribe
Stay disciplined and keep learning & earning—you’re doing great!
Happy Trading!
Gautam GodseFollow me on X/Twitter at @aioptionsguru
Appmosis Investing – Options Trading for Regular Income
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