THE SYSTEM is infallible - THE SYSTEM is 6-0 Buying Options.
And what makes it so pure is I do not understand options. I really don't. Why some go up and some go down i have no idea.
What I recognize as a stock sharp is the over reaction in options both ways. And that's what finally drew me in.
Every option guy I know is a complete piker. They have no money. This is why they like to take risks with small amounts the average lay on these options is usually $5K at the most. It's the folks you see at the slot machines in the casinos, the low hanging fruit.
The truly large option users are using them to enhance positions they hold , drive them up or make bets against as insurance or a hundred complex stops in between.
But for the average dude reading this it's a different story.
What I noticed is large REDUCTIONS on option pricing on days that the market is not cooperating. Too large.
So each weekend I make my list of ideas to pursue... This past one I actually laid them all out here in real time to se if you liked it that way....no response.
So I'll skip that- it's a lot of work. But I come up with a game plan and it has certain ideas of the moment and they are about certain companies. And that was enough.
Have some idea ahead of time, place abet and then become more famous.
Be the Best stock picker on Elite Trader which I am.
That should of been enough. but in college I had a gambling problem.
And lets just say their was a period of time when the Coke I was drinking was not in liquid form... There is a pattern of extreme behavior that had me completely blow up in the days of the Internet Stocks.
I guess they call it addiction. But that's such a weak ass word-- it's more than that: I am a sky diver who is afraid of heights. You go through lows, periods of distress... 08' I was on the ropes... I didn't tell you all but was..
That why I am careful and try to buy only the best ideas. TSCO not HD etc...
Everything was fine, settled down.
And at some point I said lets check what their options are doing.
And i was surprised. You can buy these things 30% on sale.. in a day 30% what a joke.
Just because the DOW is down 300?
So I started melding my STOCKS TO WATCH with the Options... and looking for names I thought would have some good news coming but suddenly their option chain were way on Sale.
It's never chasing. in fact GBA'S 1 Option loss on ISRG THERE WAS NO DISCOUNT. We were chasing up.
SO STICK TO
THE SYSTEM: