{"id":14390,"date":"2024-06-20T13:03:34","date_gmt":"2024-06-20T17:03:34","guid":{"rendered":"https:\/\/www.mainstbeatswallst.com\/?page_id=14390"},"modified":"2024-06-20T13:03:34","modified_gmt":"2024-06-20T17:03:34","slug":"out-of-my-dell-call","status":"publish","type":"page","link":"https:\/\/www.mainstbeatswallst.com\/?page_id=14390","title":{"rendered":"Out of My Dell Call"},"content":{"rendered":"

On Tuesday I bought 1 contract of a Dell option. When I posted that position I said I wanted to grab a $500 profit from this trade, and I said, “hopefully by the end of the day.” I also said that would be doubtful. Today, the next trading day with yesterday being a holiday, I just sold that position with the $500 profit I was hoping for.<\/p>\n

 <\/p>\n

6\/18\/24 – Buy to Open 1 DELL 1\/17\/25 $145.00 C @ $26.00<\/strong><\/p>\n

6\/20\/24 – Sell to Close 1 DELL 1\/17\/24 $145.00 C @ $31.00<\/strong><\/p>\n

Profit +$500<\/strong><\/span><\/h4>\n

 <\/p>\n

Investing $2600 with a $500 profit is a 19.2% gain. Not bad for a 1 day position.<\/p>\n

I didn’t have to invest $2600 but I did because I had an Expiration Date of January 2025. I don’t like to buy options but if I do I buy with a lot of time protection. If the stock takes a dip I have plenty of time for the stock to recover. I could have bought a 1 month option which would have cost me about $900. I would have made the same money, $500, and the Return on Investment would have been 55%.<\/p>\n

When reading your options books do not fall for the high percentages they preach. Short term options are very dangerous. If the stock takes a dip there is not enough time for the stock to recover and Time Decay<\/a> <\/span>kills your premium. And if there is only a few weeks for the option to expire, Time Decay is very quick. The value of the option melts away very fast. The only time I buy short term options is with my Stock Split Strategy.<\/p>\n

If you have any questions on Time Decay send me an email.<\/p>\n

 <\/p>\n

Successful trading,<\/p>\n

Steve<\/p>\n

The Options Coach<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

On Tuesday I bought 1 contract of a Dell option. When I posted that position I said I wanted to grab a $500 profit from this trade, and I said, “hopefully by the end of the day.” I also said that would be doubtful. Today, the next trading day with yesterday being a holiday, I […]<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"class_list":["post-14390","page","type-page","status-publish","hentry"],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/P75MP0-3K6","jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/pages\/14390","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=14390"}],"version-history":[{"count":1,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/pages\/14390\/revisions"}],"predecessor-version":[{"id":14393,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/pages\/14390\/revisions\/14393"}],"wp:attachment":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=14390"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}