Investment Categories

Category One

Low Risk

Part of this category is the use of options to protect our long stock position, the green boxes represent where we sold covered calls for residual income and protection.

 

On May 12th, we sold a covered call at the $190 strike for May 15th expiration. We sold it for a net credit of $2.70. We bought it back the same day with a net debit of $1.00. For a 62% gain in one day.

 

On June 10th, we sold a covered call at the $192.50 strike for June 12th expiration. We sold it for a net credit of $6.00. We bought it back the next day at the open with a net debit of $2.39. For a 60% gain in one day.

These Investments are for longer term traders with a heavy emphasis on areas that would be traded by banks and institutions.

This is an example trade taken from this category. Entry at 167, stop at 162, and our target was at 202. This was a 21% rise in the stock price. 

 

These settings are used to take the options in this category as well.

 

On April 21st 2020 we bought a $170 strike call and sold a $200 strike call. For a net debit of $9.83 and a net credit of $25.75. For a 162%, gain in 8 weeks.

Category Two

Moderate Risk

These Investments are made to be held for 6-10 days with a key focus on quality supply and demand zones.

In this example we took an option trade to capitalize on price action.

On June 15th 2020, we were long K (Kellogg) at 62.50 strike calls for September 18th 2020. For a net debit of $3.95 which equates to $395 a contract.

We sold the $62.50 strike calls for September 18th 2020. For a net debit of $6.70 on June 17th 2020.

Which was a percent gain of 69.6% in two days.

Category Three

High Risk

These Investments are made to be held for 1-2 days with a key focus on momentum.

On June 24th 2020, we bought a put on WYNN (Wynn Resorts) for $10.18. This would’ve a net debit of $1018 per contract. We sold the put the next day for $14.95. For a net gain of 47% in one day.

Category Four

High Risk

These investment ideas are held for 1-3 days. The nickname is called Lotto play. This Category has a key focus of investing a smaller amount of capital for a huge rate of returns. We call it Lotto play because they are considered high risk and you can potentially lose most to all of your initial investment capital if the idea does not work. The position size is overall the smallest compared to the other categories.

These investment ideas are held for 1-3 days. The nickname is called Lotto play. This Category has a key focus of investing a smaller amount of capital for a huge rate of returns. We call it Lotto play because they are considered high risk and you can potentially lose most to all of your initial investment capital if the idea does not work. The position size is overall the smallest compared to the other categories.