WDIS: Two Yutes - Beginner Options Trading - March 5, 2021 - Profits from Down Moves
It was a wild, two-sided day in the markets today-- as volatile a day as we’ve seen in a while. Tom reminds E and Kay that some of their beloved hot shot companies have been hit hard. RIOT virtually got cut in half in market value, and THAT is why we play both sides of the market.
E and Kay realize that playing it bearish can pay off sometimes:
- E takes off the bearish PYPL position he put on on Monday (long put spread) for a profit.
- Kay takes off her bearish TWTR position (short call spread) for a profit.
Tom reminds the kids that it’s important to stay super active and have a good number of positions on--not just for the sake of learning, but also so your returns start to look like what they’re supposed to. The more you trade, the closer you’ll come to your probabilistic expectations of success.