{"id":5220,"date":"2019-07-12T15:17:32","date_gmt":"2019-07-12T19:17:32","guid":{"rendered":"http:\/\/www.mainstbeatswallst.com\/?p=5220"},"modified":"2019-08-03T11:55:21","modified_gmt":"2019-08-03T15:55:21","slug":"bought-put-position-with-square","status":"publish","type":"post","link":"https:\/\/www.mainstbeatswallst.com\/?p=5220","title":{"rendered":"Bought Put Position With Square"},"content":{"rendered":"

\"\"<\/a>This might be the 1st Put position I bought since the inception of Main Street beats Walls Street<\/strong>.<\/p>\n

I\u2019ve been trading options for close to 30 years now, and I don\u2019t know if I ever bought a Put before. Crazy! Well , there\u2019s a first time for everything. Now that I\u2019m not coaching basketball I\u2019m a full time trader again. My main strategies of selling Calls will not change, but as a long time trader I feel I should take advantage of my knowledge and, at times, use all strategies to beat Wall Street. This will include all types of Calls and Puts. I will continue to teach the strategies that I feel are the best for Grasshoppers<\/a><\/span>; strategies that will give new traders the best chance to make money and learn. I guess when it comes to Grasshoppers, I\u2019m saying \u201cdo as I say and not as I do.\u201d<\/p>\n

Today\u2019s trade was motivated by a similar reason that motivated me to get out of my NFLX LEAP position yesterday. Please take a look at yesterday\u2019s post (Out of My NFLX LEAP<\/a><\/span>) and look at the graph. If you click on the graph it will get bigger. Today NFLX is down $6.<\/p>\n

Today I see a similar situation with Square (SQ). Only this time I got into a position by buying a Put. When you buy a Put you will make money as the stock goes down. Clearly I feel SQ will be going down. Take a look at the graph in yesterday\u2019s post and take a look at the graph below. Check out the similarities.<\/p>\n

\"\"<\/a><\/p>\n

This graph covers about 8 months and the candlesticks are daily candles. I placed a line across the top of the candlesticks which I consider the resistance. Look at the 3 red arrows I placed. At those 3 points the stock went up to the line and hit resistance and the stock stopped going up. The green candlestick all the way to the right is today\u2019s candle. It went up to the resistance line and I feel the stock will pull back from here. I feel so strong that it will pull back that I bought what is possibly my first Put ever. That resistance line is at about 82.75. When I bought my Put the stock was at $82.37. I bought the 8\/16\/19 $80 Puts for a premium of $2.92. My total investment is $2920. I\u2019m hoping to make $1 with the premium. That means I\u2019d sell the option at $3.92. Let\u2019s hope so!<\/p>\n

Buy to Open 10 SQ 8\/16\/19 $80.00 P @ $2.92 ($2920)<\/h4>\n

Also, another indicator to support my prediction, check out the RSI green line graph below the candlestick graph. It is well above 70 which means the stock is in an over-bought situation. Read the RSI<\/a><\/span> page.<\/p>\n

I do feel the stock can go up a little closer to the resistance line but early next week I think it will go down a bit. Again, let\u2019s hope so!<\/p>\n

I never feel very safe buying options so I do feel some risk. Plus, this is a very hot stock and I\u2019m going against the grain. I give this trade a Risk Factor 3<\/strong>.<\/p>\n

Steve<\/p>\n

The Options Coach<\/em><\/p>\n\n\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

This might be the 1st Put position I bought since the inception of Main Street beats Walls Street. I\u2019ve been trading options for close to 30 years now, and I don\u2019t know if I ever bought a Put before. Crazy! Well , there\u2019s a first time for everything. Now that I\u2019m not coaching basketball I\u2019m […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[1],"tags":[],"class_list":["post-5220","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p75MP0-1mc","jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/5220","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"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=5220"}],"version-history":[{"count":3,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/5220\/revisions"}],"predecessor-version":[{"id":5430,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/5220\/revisions\/5430"}],"wp:attachment":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=5220"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=5220"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=5220"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}