For only the 4th time this year, 13 weeks, the market has managed to stay inside the weekly expected move. We don't think this means volatility is over. In this crucial weekend video newsletter update we look at how you can prepare for the upcoming volatility. Watch this video right now to find out what stocks and ETFs present the best opportunity both long and short...
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3 Comments
Sarah Cecil
March 31, 2018Hello, I am still trying to understand trade language, specifically "short" and "long". I took notes from Dons 3/30 weekend edition, which I have listened to twice and hoping someone can answer this slew of questions:
"Im going to be maintaining some short positions". Does that mean he is going to maintain some put options? call options?
How is "buying an ITM put" getting short? I thought buying was long?
How does buying ITM put stimulate owning a stock?
What does a short delta bias mean?
What does "ready to re-up and put some short positions on and will use in/out spreads and let the volatility crush the market" mean? When he said "i am waiting for the next bounce to reload and short" does that mean sell calls? Thank you so much for your help! Sarah
Fred Page
March 31, 2018Greart wrap-up whether you are correct or not. Thanks fred
Josh
April 1, 2018Hi Sarah - I am not answering all of your questions here, but hopefully this helps.
Trading Term Definition: Long and Short. ... A long trade is initiated by buying with the expectation to sell at a higher price in the future and realize a profit. A short trade is initiated by selling, before buying, with the intent to buy the stock back at a lower price and realize a profit.
"i am waiting for the next bounce to reload and short" does that mean sell calls? Thank you so much for your help! Sarah
(no, he could do many things but buying calls is not one of them. He may either buy puts or short the stock when he feels the the stock has gone up high enough with an anticipation the surge in the stock price is short lived.
my understanding of Delta is how much the option will move up or down based on the movement in the stock price.
A delta of 1.00 ..then you expect your option to move $1 up if the stock goes up a $1 or ($1) down one dollar if the stock moves down a dollar.
or Delta of .20 then expect a 20 dollar movement in your option based on the stock moving up a $1 or down a ($1) ..( not always perfect)
great questions
Thanks,
Josh