Shorter Term Bullish Trades | Technically Speaking: Trading Stocks & Options

[Music] all right apologies for the slight delay folks but um i'm a one-man band over here and i was just having trouble getting uh everyone in the band on the same page so this is technically speaking trading stocks and options i am filling in for the fabulous connie hill today we have actually traded places and if you haven't seen that movie in a long time it would probably be fun to go back and watch it right um but yeah connie hill is in the chat she brings a wealth of experience and for those of you who are regulars here you know just how amazing connie is so i will say no more on that she's a fellow coach so today i thought what we'd talk about is for those who are just not quite sure like the market's been so bullish and year-to-date it hasn't been behaving and kind of in a bullish way has it and we don't want to sit there with all our money in cash but what might we do if we're still not totally certain whether we're using stops or options and having a technical bias because this is technically speaking trading talk uh stocks and options so um that's what we're going to look at today what to do when from a trend perspective it's not a hundred percent maybe clear yet okay so somebody made a comment that i'm feeling better now i i'm feeling so much better than i was monday a lot better than i was tuesday um the results came back i do have coven so i will give all of you a virtual hug but i won't actually be hugging anyone for some time to come but yes i'm here so um i just want to i'd like to start by greeting everyone hello to sandeep krishna and sarah and tm and and bill and rk teddy and george and and uh sejono and walter and um the rest of the gang thank you all for being here and for being so interactive if you have any questions don't hesitate to type them into the chat if you are joining us um in the archives as the majority of people do know that you can type a question into the comment section and i do look at those at the beginning of every trading day so know that i will um i will look at that and i'll get back to you promptly um also you know both connie and i are in the world of twitter um and so you can see my handle above my head at the armstrong underscore tda connie's is at sea hill underscore tda so um yeah take advantage of that we're posting helpful content on a daily basis it is free my friends so if you're not taking advantage of it um you are missing out so we have a jam-packed agenda for you today so i i just want to get through our important information so we can get right out to um the good stuff as i like to call it okay so oops i went through that kind of quickly know that this content is intended for education and informational purposes only none of what we do as examples here is to be construed as a recommendation on the part of td ameritrade or myself know that when we look at options and we will be looking at options that they're not suitable for all investors there are special risks inherent to options trading that you know can expose investors to potentially rapid and substantial losses so you may want to grab and read a copy of the characteristics and risk of standardized options also know that all invest involves risk including the risk of loss and when we place a stop market order it's not a guarantee that we'll get out at exactly the price we have requested so if you had a stop on facebook last week and you owned the stock and it gapped down it may have triggered your stop but you would have got out somewhere probably in the neighborhood of where the stock started trading the day after the drop not where your stop was and that could have been kind of painful um but yeah that can happen okay so what are we going to talk about today well we're going to have a quick look at i referred to kind of what's been going on with the market we're going to have a quick look at the market then we're going to look at both option trades because this is technically speaking trading stocks and options so i thought we'd look at a couple of stocks and look at if you're you tend to prefer to trade and use the ownership of stock to do that how might you take advantage of something that we're seeing on the charts and then if you're comfortable using options how might you use options to do that and we're going to look at a couple of different examples so let's get out to the platform and and go to job number one which is you know what's happening in the market and if we come to the charts i i actually got this from brent moore's and um you know so school is never out for the pro right i saw him do this about a year ago and i thought it was kind of pretty cool but if we look at the last year the market this is the s p 500 has you know obviously been up trending but then we got here you know to this high at the beginning of january so you know january started it's like oh the santa claus rally is continuing and then it was like yeah jk no it's not um and if we come here do you see where it says patterns well right underneath patterns this is this there is this line i think it we're going back a long way here to calculus it looks like a sign line i think but anyway that squiggly line if you click on that you've got a drop down and it says show prices percentage and then we can also come here and we can create a year-to-date column you know if you don't have one come down to customize list and you can choose year to date and so if i look at where we're trading today we're down five percent and we're having another kind of whiplashy as i affectionately like to refer to them i say sometimes i believe so far this year the market has been sponsored by the american chiropractic association because we're all getting whiplash you know you know the market started up and then it went down and right now it's kind of gone a whole lot of nowhere but year to date we're down five percent you know and and some might say well a five percent pullback in the context of a longer term uptrend is still pretty bullish and and while one might agree with that um it still doesn't feel very good when you're in the middle of it and this black line here is a 200-day moving average so we actually back on january 20 well january 21st which was a friday we closed below the 200-day moving average which has a lot of people you know feeling not so certain about the bullish uptrend and then we stayed underneath it for a week and then crossed back above you know that's how we ended january and so far that seems to be holding it's come up re-tested and is now flirting with the 30-day moving average but the question that a technician might ask themselves is is this 30-day moving average now going to act as a potential ceiling or a resistance level and and it kind of looks like it bonked its head on it yet it yesterday and maybe pulling back now it may just be catching its breath we're not out of day yet now when we look at the nasdaq it was hit even harder so far this year you know and we're at down almost 10 year-to-date on the nasdaq so twice as much the tax stocks have been hit kind of hard and again you know unlike you know the s p which is flirting with the 30-day moving average it we've got the 200 and the 30 close to converging and it seems that the nasdaq is is wrestling with trying to kind of punch through that and so we haven't seen a definitive trend yet that says yes we're not back above that 200-day moving average and we're not back above the 30 yet either so the bulls seem to be kind of you know they're working out but sitting on the sidelines now when we look at the russell hard to believe the russell is down less than the nasdaq um because if we back the truck up a bit you know this index has been going sideways really for a year and then it looked like it was breaking out we even put a target on the chart in a fit of optimism and then it was like yeah you thought it was a breakout fake out and it came all the way back down to this support level that it had hit oh so many times over the last year and you know one two three four five it was in the hood six seven eight it was hanging out here and then it broke below and this was about 130 points right 2130 to 2360 or sorry 230 points and when it broke down you know it went down to 1932. so you know it went down about 200 points and and it went there like it took the express train and now it seems to be bouncing so the question is you know is this now this old support level that was also so strong is that now going to act as a ceiling and the jury's still out you know that we don't know yet so you know we'll just have to wait and see but when we look at where we were at the tippy top here and i just have to get rid of this drawing tool and we'll go to a thinker swim drawing tool if i go from where we are now up to the top we're still down 15 and if we go to the very bottom to the top that was you know 22 a 22 20 you know over 20 pullback that's considered you know correction territory for sure um so the small caps you know have really been beaten now the the value stocks within the small cap i think uh mike fairborne had posted something on that they have held up relatively well but a lot of the gross stocks in the small cap arena have been pummeled now the dow which is based on the price of the stock the dow 30 based on the price of the stock as opposed to the market cap of of you know the stocks within the dow 30. um it's actually been the most resilient of the bunch so when we look at where it is now and i'm sorry i've got a lot of lines on here so you know maybe we need to just clear a few of these out and my apologies if i'm coughing a little bit but that's kind of the way she goes with this thing um so if we look at this we had this previous resistance level appeared to have broken through and become new support it came back down but year to date if i go back to our year to date and we come back down here to here today this one is down the least only two and a half percent but you know down the leash they're still all down year-to-date now does that mean that every sector is down year-to-date it does not and and where i like to come to see sectors is to the td ameritrade.com platform and we can either look at the market monitor tab a really quick way to look at it though it's just we've come to research and ideas sectors and industries so we can see today oh this is three months so today what's leading energy materials financials and health care and communications but energy materials and financials even though the s p is down three quarters of one percent um these three sectors are all up well one date is not a trend make how about the last week oh technology coming back around the bend materials consumer discretionary seeming to roll back into favor all of these up over four percent but again financials in here health care in here if we go out to a month which gives us a better idea you know we've got energy financials materials and so why am i bothering to look at sectors because if you're starting out and you're going like geez i have no clue where to begin like where where do i even start i had all this stuff invested i now have a lot sitting in cash because i chose to exit many of my bullish positions when i go to get back in where do i start and and this might be how you do part of that analysis is to say well you know just because all of these major indices are in the red year to date are there sectors that are not you know and so if we look at three months energy financials materials are all still strong and there are other individual stocks that maybe aren't even in these sectors these three sectors or four sectors that are strong as well so we're gonna come back and if so if i come back and and say okay well now we have agenda item number one done you know so we can put a check beside that one so we've taken a look at kind of what's going on now you know how might we choose to you know take a look at an individual stock and then look at how we might use either stocks and or options to take advantage of that so i thought that one that we could look at was one that i posted on uh twitter something on it i think it was yesterday so on february 9th that was yesterday so i said is anyone else noted noticing either you know i spy with my little eye an inverted kind of head and shoulders pattern here on citigroup which is part of the financial sector and if you draw this diagonal line you'd say oh and it looks like it's breaking out now other people might say well barb you see an inverted an inverted head and shoulders pattern on a tilt and the idea being that if it breaks out one would expect the movement to be about the depth of the head and other people might say well i see a cup and handle and it hasn't broken out yet now this was yesterday so today it has broken above that and the technical idea would be you know if you're going from 57 to 67 you know that you'd expect about a ten dollar move to the upside you know if this is ten dollars i'll draw on my own drawing so you know if this is about a ten dollar move from 57.50

to 67 90s well you know 10 plus a little bit that we might expect to move a 10 move to the upside you know capisce any questions on the the logic behind that i know that so many of you are familiar faces i i know that you're seasoned veterans but if you're brand new this may be a new concept so if you have any questions there are no poor questions in my mind the only poor question is one that you didn't ask okay so we're going to come and we're going to look at citigroup and i'm going to change our time frame here let's let's bring up a nine month time frame so what we can see with citigroup is that it was kind of getting beaten up wasn't it um and it's still trading below the the 200-day moving average but what we've seen is this pattern whether you're seeing a diagonal breakout or you're looking at this cup and handle where it appears to be moving to the upside now since i looked at this we hone in you know it's come back a little bit and so we might say well if we want to err on the side of caution when we place our trade we could look at today's candle and the high of that is 68.55 so i'm going to make a note and say you know what i want to be sure that it's not going to come down and do another another a double handle on the thing so what i'm going to do is make it a conditional order if it goes above today's high then i want to get in yeah and and somebody said you know i like the chart my concern is the current market state and you know what like now we just looked at it and it just went red on the day well now it's sitting at zero well or up a penny you know so you know we're live in the market and often we're making these kinds of decisions so we can see if i'm looking at a one minute chart here here's what's happened to citibank so far today and it is pulling back excuse me so if we look at this and we say well you know that's a an absolutely legitimate concern how might we resolve that concern is to say i'm only going to enter this trade if it goes above today's high okay does that make sense so that we don't look back and we can go dang it i was looking at this last week and i saw this pattern and i thought it looked good and then i didn't take action excuse me because it wasn't appropriate to take action that day and then i went to big sky skiing for a week or you know i went and played golf in florida you know for a week or or whatever and and then i kind of missed the entry so we're going to set it up so that even if we're not paying attention um you know we can we can enter this so if we just kind of like look at this and we're saying you know when we look at the financial sector as a whole we can see that it's been strong over the last week you know and that it's one of those sectors that actually it you know has been stronger so and and it was you know again like if we look at this it has been a little bit beaten up hasn't it so if we come back and look at this and say well we're catching it perhaps you know coming out of this doldrum so if we wanted to just buy the stock and we have a let's say we have a quarter of a million dollar account and and our position size says we could have a position between say you know up to seventeen thousand dollars we might say well we'd be willing to buy um 200 shares that'd be about a you know 13 and a half thousand dollar position what about position sizing you know how much risk can we take well if we said well we'd be willing to risk and i'm i want to change accounts here we'd be willing to risk you know up to about twelve hundred dollars so if i look at this and i say okay i'm thinking it's breaking it's going to continue breaking above this 67 80 level if it doesn't and we're wrong about that if it goes three percent below that so i'm going to change my gadget to a calculator and i'm going to say 67.84 if it goes three percent below that then it's not heading in the direction i was anticipating and so i'm going to exit the trade at 65.80 so that's going to be my stop now is that does that guarantee i'd get out at exactly 65.80 it does not but it will trigger a market order if it trades at 60 580 or below and then you know we said well 67 this it was it bottomed out at 57. if we're expecting about a 10 move we could put a target in and say hey if this goes to 77 i'd like out but if we're looking at our time frame if we come in here we could see we had a previous high here around 74.50

so instead of making it 77 we we could make it 75. if we wanted to do this as a swing type trade and and recognizing that there are other areas along the way that could act as as resistance on this okay so to put that trade in we come to the trade tab we're looking at buying the stock now what's one of the advantages of buying the stock well one of the advantages is it pays a dividend of three percent so if we own this for a little bit we could end up with a dividend out of it it's also in that value category with a price earnings ratio of 6.7 and it would seem that you know value stocks seem to be rotating a little bit more into favor okay so we're going to right click on this we want to buy custom and we're putting in an oco bracket and that we're putting in both a stop and we're putting in a target and what did we say our target was going to be well we could make a target 10 above but we thought well we saw a previous resistance around that 7450 level so we're going to make it 74.50 our stop we're going to put in at 65.80 and i think it was 68.55 was today's high

68 55 we're going to add 20 cents to that now you know what it we could make it 50 cents we could make it 25. i mean the one thing i encourage you to do is if you're putting in a conditional order i'll sometimes say well if it's under a hundred dollars a share i'll use 20 cents if it's over a hundred dollars a share i use 50 cents if it's over 200 a share i might use a buck but come up with something that kind of makes sense to you so we're our entry will be as if it hit 68.75 so when we come back to the trade tab so just in case this doesn't go according to plan then we won't even end up getting into the trade unless it goes up and so we can do this a couple of different ways this is just the way that um it makes the most sense to my brain is if it goes at or above 68.75 then we want to buy the stock and some of you might say like are you new like why would you want to wait and pay more well because i only want to buy it if it goes up if it doesn't go up then i was incorrect in my analysis and i'd rather wait and i can keep this one on my watch list but if it goes above 68.75

i don't want to miss the entry that's kind of the thought process behind it okay okay so there we go fire in the hole and we're not going to hear a little ping because it's not trading above 68.75 you know which is you know almost a dollar higher than where it's currently trading and so we could put that into our swing trade or you know it it's a high enough target some might even consider that a trend trade but we're going to t that one up now could we do something pretty similar with options we could so we could come out and how long do we think this might take well if we look at how long it took to come from here up to this top just the first time around that took 18 trading days it took almost a month 24 days if we look at you know how long the whole pattern took that was 50 days so we might not just want to go out until march you know we um so one of the things that we might do is say well i might want to give it you know until april so what's the diff well we're going to pay more for the option so if we look at where it's currently trading and we want to look at buying a call close to where it's currently trading you know this it's trading at almost 68 so this 67.50 would be the one that's closest the march expiration would cost us two dollars you know around 2.47 if i come out to april let me get rid of this thing at the bottom it's going to cost me almost a dollar more but i'm getting twice as much time 63 days not quite twice as much time uh 72 days it'd be twice as much but substantially more time for that dollar now what about open interest and volume you know when we look at the volume on this stock it's already traded 11 and a half million shares today so it's a pretty heavily traded stock how about the options well there are 45 000 contracts on the books at the 67.50 strike almost a thousand so we aren't the first people today to have this idea of buying or selling a call on citigroup at the 67th strike out 63 days in in april and so if we looked at this and we said well if we were willing to risk about 1200 you know how many of these could we do well how much could we lose on this well we could lose the entire amount so if we said okay we'd be willing to do four of these would be 1200 and change so let's because the change would add up to about 1300 let's look at doing three so what are we going to do we're going to kind of do this same idea now i'm just going to put it in as a buy because my exits are not going to be based on the value of the option they're going to be based on where citigroup is trading so i'm going to come to just buy single and then how do i put my exits in well i'm going to change my single order to a first trigger sequence right click and create an opposite order now i'm not going to get into this right now am i because it hasn't met that condition of trading above today's high so and right now the net change is sitting kind of right where it opened so we're going to make this a market order to enter the trade make that good till cancelled and our entry is going to be the same as it was for buying the stock which was we only want to buy it if it goes above 68.75 now how much are we going to pay for our option well we're going to pay a little bit more we could go to theo price you know and and try and figure that out um i'm not going to do that in the interest of time but one could do that but we know that we've got some wiggle room if we're willing to risk 1200 on a trade because if this one it's trading at about 330 that would be under the thousand mark so even if we have to go up a little bit more we're okay okay um yeah so i'm showing so dylan has asked can you show how to set two targets so i i'm putting in two targets in the sense that we have a a a profitable target and then an exit if it goes against us if we wanted we could say you know we could put the the trade in and then when it fills we could go in and say well we're doing three of these if it hits that when it hits the first target you know i want to exit i want to get out partially so we could do that and i'm sorry in the interest of time i'm not gonna cover that today either but it's a great question dylan and you know connie hill teaches a class on wednesdays at five o'clock eastern on the thinkorswim platform and a couple of you have asked a specific um how to use the platform questions those are great questions to bring there if i can't answer them in the context of the class um okay so oh and then we haven't put our targets in here so we're gonna make this a market order and we're gonna do exactly the same thing that we did with the last one we're gonna put in the same targets now if this gets like three quarters of the way to our target and then we get this you know an inverted hammer or a candle pattern that indicates that this uptrend may be over can we exit ahead of time absolutely absolutely um and what was our target 74.50 i think

74.50 and if the trade goes against us and it goes below 65.80 now is this a set it and forget it trade we have a target in if it goes our way and our target if it doesn't absolutely not there are some mid management strategies that you want to keep in mind even though this is a swing trade it's it's actually not i'm using swing trade loosely because we could be in this trade for several weeks so it's kind of a cross between a swing and a trend trade with an exit if you will now what's one of the differences so when we come and we look at this how much could we lose and it's assuming the price is based on today's price we could lose 950 and that number could be over a thousand but i i want to talk about because we're well i'm going to put both of these in our swing trade bucket but one of the things you might want to look for is you say well if i'm expecting this to make this move in in 30 days and it doesn't move half the distance in half the time i may want to exit this trade so that's you know one thing that we could do so i'm going to tee this up pardon me so we might say if it doesn't move half the distance in half the time we want to get out we could also say you know if it breaks that support level we don't have to wait for it to hit our stop to choose to exit um or if we have two or three down days in a row this is bullish trade so we may say you know what um this isn't going in the right direction so particularly with an option what's the difference the big difference and i know we have a really smart group here what's the big difference between the option trade in the stock trade go ahead and type it into the chat because if we come back out to the chart and let's say it breaks above as we're expecting it to do and it starts moving up and then it starts a lot like gagging yeah what if it starts lollygagging and going sideways well at the end of 60 days with our stock trade we still own the stock and you know this stock as i pointed out also pays a dividend so we might get paid a dividend and we may not have made much but we may not have lost anything where with the option if this lollygags around and doesn't go in the direction we're expecting you know this has an expiration date on it and so you know when we're looking at long options i mean it's we have to be mindful of the fact that the clock is ticking and time is not our friend time is not our friend um you know with with options but just to show you the difference and i i did want to do another example but i think this is powerful when we come to theo price we're expecting this to go up about ten dollars right and we said well you know if it goes up about eight dollars to 70 about 75 if this goes up eight dollars we'd be fine so if we come here to theo price and say well let's say you know we we were correct and this goes up by eight dollars and it hits our target currently this option you know if we were to have bought it right now we'd be buying it for about three let's just call it 3 15.

and let's say it takes until march 4th is so it takes today we're at the 10th one two it takes just over three weeks so march 4th what might this option be worth i just have to hit enter if it went up to 75 dollars well it would be worth about eight dollars and 36 cents so if we come to our calculator and you say okay eight dollars and 37 cents and this is just an approximation we we aren't taking volatility or anything else into account the fact that it could get there sooner or it could take longer if i divide that by 315 that's a 200 and some percent return 266 return and so you know you're doing the happy dance but let's say it even just goes down by a dollar in that month or it goes down by two dollars so not even eight just two dollars what would this be worth almost half as much and that's not even like that's not even enough to hit our stop well actually saying here 65 53 that would hit our stock but you know we'd be out and we'd have a 50 loss you know where if we looked at the if we looked at the stock and said that if we got out and we were out for if we got in at 68.50 so we're out three dollars if we look at three divided by 68 how much of a loss is that four point four percent versus fifty percent you know and if it went up eight dollars and we got out eight divided by 67 um or 68.50 that's an 11.7 return in about a month so you know many investors would say wow that's pretty awesome until you look at the option price and then you went wow i would have been up 267 percent if i'd bought the option yeah but you could have lost the entire amount also just by having it go a whole lot of nowhere right up until expiration so it's important that we understand the differences between trading stocks and options right right and and we could do a what's called a leap you know a longer term option we could do that as well but if we're you know remember when i started this webcast we were talking about well what do you do oh sorry i hit the wrong button there what do you do if you don't want all your money sitting in cash but you're really not so certain about just how bullish the market's going to be and so then you might not want to consider a longer term option if that's part of the uncertainty and so that's why we looked at it at a shorter time frame now if we want to look at something really short i have one other example i wanted to show you just really quickly and it's on an energy stop so if we look at apache so we can see a lot of the energy stocks have been just crushing it you know and we see here it's up it's pulled back a bull flag up again pulled back for a couple of days and today now the market seems to be selling off kind of coming into the end of the week but we've got earnings february 21st and so i thought we could look at something called a short put and a short put you know could be a way to acquire stock but it also can be a way to just generate growth or income in your account when we sell a put what we're doing is saying we're agreeing to buy the stock so if we looked at this you know we said we've got support here around you know 30 to 80-ish could we sell a put and and take advantage of the fact that earnings is coming up now some people choose to avoid trading over earnings but what's one of the advantage advantages of selling a put before earnings is that volatility is going to be higher so if we come back to our regular thing here and say even if we just went out 36 days if we looked at the 30 strike now where's the 30 strike on the calendar or on the chart rather so i'm just going to draw a line and if you're trying to do things quickly as i often am so you can just draw a line kind of anywhere and then edit it and say okay if it came back here does it show a total change in trend well it's come back kind of to this previous resistance level but it's below where it recently traded it's below the 30-day moving average the energy sector has been crushing it um yeah so if we look at this and we said yeah you know if it came back here i'd be okay with owning it but i'd also love to just make some cash and this is i if i did this as a shorter term trade went out to march that's 36 days i'd be paid let's call it a buck and you might say well a dollar that's not going to have me sipping something interesting you know out of a glass in tahiti somewhere and while that may be true you know that's still a 3.3 potential return um you know in 36 days because this is only a 34 stock and so if we looked at that and said well if we did own the stock and had to buy it and we're willing to take a 12 000 position we could do four of these and then when we get past earnings which happens to be the day after well no it's the 21st i thought it was the 15th we could look at it and if we've experienced this volatility crush and the price has even stayed where it is we might have 50 or 60 percent of our max gain we might not but it's worth checking because right now volatility is at 63 which is high so if we look at this and say okay i'm willing to do four of these i'm gonna come out sell a single and then you might you could even say you know when i've got eighty percent of my max gain on this i wanna shut it down or you can just manage it as you go if i say okay i'm gonna sell four of these because i'd be willing why did i pick four because i'd be okay with owning twelve thousand dollars worth of apache so i'm taking position sizing into account um and when this is worth 20 cents i'd like to buy it back so this is saying now the mid and the natural is 110 so maybe we can change this oh now it's saying 99 again so it's kind of all over the place let's see if we can get an even dollar for it it has a nice ring we're going to make this one good till cancelled now when we come to our confirmation screen it's going to say we could lose 11 600 how would that happen it would happen if the stock were put to us and if it fell to zero in value you know so that's technically the risk that we're taking we're going to put this under our short put group and send it on in how much can we make the most we can make is 400 if we get filled at that price and so you know could we just go out and buy the stock we could do that as well but this is a way of putting in an order that says i'm willing to buy the stock um you may be hoping that you don't end up with the stock and you just end up with 400 or some portion thereof um but it is a way that some people will look at stock acquisition now if you wanted to be more likely to end up owning it you might have sold the 3250 or even the 35 the first strike in the money so that's a possibility as well okay so guys i think we've done what we set out to do we looked at the current market um so sorry we looked at the current market we looked at a couple of option trades and then we looked at one company we looked at citigroup and how we could you know use both the purchase of a stock or an option trade to take advantage of a potential trend so i hope that you found this helpful i know that connie is in the wings she will be back next week i'm sure that you guys all missed her i love being in the chat when connie teaches this class because i continue to learn from her each and every week myself so i want to thank her for being in the chat i want to thank all of you for your questions um if you're not following connie and i on twitter i encourage you to do that if you could hit like and if you're new to this class subscribe subscribe to this channel i think you'll be glad that you did and um yeah so just to close things out remember that um if you are new let me just show you the rest of the screen here let me change this back yeah on monday there's a getting started with technical analysis class tuesday getting started with options that's connie and i are tag teaming on that wednesdays i've already mentioned exploring think or swim portfolio management basics if you haven't had enough of me i'll be back at three o'clock eastern for that and then um you know another couple of platform classes and then friday connie teaches getting started with stock investing that's excellent as well keep in mind everything we do in this class is for education and informational purposes only none of it to be construed as a recommendation on the part of td ameritrade or myself and know that options aren't suitable for all investors there are special risks inherent to options trading that can lead to potentially rapid and substantial losses we discussed what those might be as applicable in this class also know that with the thinkorswim platform we did do a short option that can be assigned at any time and it doesn't have to be in the money to be assigned so we have to be aware that we could end up owning in our example trade today 400 shares of of apache that won't happen in paper money but it can happen in real life and have i seen it happen prior to expiration yes i have so just be aware that that's a a possibility okay and know that all investing involves risk including the risk of loss so that's a wrap for today friends thank you for joining me have an awesome rest of your day and um i'll look forward to seeing you in portfolio management basics at one o'clock today um or in trading a smaller account up next is our favorite james boyd who is talking about trading the trend take care everyone bye for now

2022-02-12 23:43

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