BY ANDREW GIOVINAZZI
April 1, 2024
Yo Pit Crazies,
What I tell my students is do you want to be an option trader or an options investor. I think folks what to trade but really they do not want to give up the time it takes. One of my students, Hogan, spends most of this time or cruises. How is someone going to trade cruising the globe?
Yet he does pop in to get trades because Option Pit trading products make money for students while they learn to trade options.
Crazy I know.
On this Easter Sunday, I will give you my easiest trading tip.
Keep the trading and investing separate
Traders close trades and investors take delivery. I think Tesla Inc (Ticker: TSLA) will be up 20% from these levels. That is an investment thesis. I won’t make a 5 day trade because I think TSLA will be up 20% this year. That is a way to go broke.
I could get lucky! Luck is a 4 letter word and gets put in the same bucket as wish, need, hope and want. Bad w0rds as a trader. A good word in time. Good investments need time to work out. Options do not like time as they have short lifespans unless you trade for delivery. See my CBOE post from Friday.
Only make investments in the underlying you want to own. I mean really own. If trading options on an investment, still have a price to get out. I can always re enter but I cannot get $ back if they go to 0.
If my TSLA investment makes some dough, maybe I will finally do that Alaskan cruise.
Happy Easter!
To Your Trading Success,
-AG
Andrew Giovinazzi
30-Year Trading Pro
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