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$AMT Announces Pricing of Public Offering of Common StockApplied Molecular Transport Announces Proposed Public Offering of Common Stock AMT announced that it has commenced an underwritten public offering of 2,500,000 shares of its common stock. All of the shares in the proposed offering will be sold by AMT. In addition, AMT expects to grant the underwriters a 30-day option to purchase up to an additional 375,000 shares of its common stock in the offering. Applied Molecular Transport Announces Pricing of Public Offering of Common Stock AMT today announced the pricing of an underwritten public offering of 2,500,000 shares of its common stock at a public offering price of $42.00 per share.
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by AlenCiken
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$Uxin Entry into a Binding Term Sheet with Potential InvestorsUxin Announces Entry into a Binding Term Sheet with Potential Investors $UXIN, a leading nationwide online used car dealer in China, today announced that it has entered into a binding term sheet with two established Asian funds on April 1, 2021, pursuant to which the potential investors have agreed to negotiate and potentially enter into definitive agreements with the Company for the subscription of senior convertible preferred shares. The potential transaction has an aggregate investment amount of potentially up to US$300 million. The completion of the potential transaction is subject to the parties’ execution of definitive agreements and customary closing conditions to be stipulated therein. finance.yahoo.com
NASDAQ:UXIN
by AlenCiken
Why Options Are DangerousIn today’s article, I want to answer a few questions about why options can be dangerous. What are the risks of trading options? Are puts or calls riskier? Why is option selling risky? We’ll also talk about the safest options trading strategy. So let’s get started and let’s jump right in. Buying Calls & Puts First of all, you need to understand that there are different types of options. There are call options and put options. So calls versus puts, which one is riskier? Some people think that trading puts are riskier, while some people might think that trading calls are riskier, but this is not the case at all. The key question is that you should ask yourself is, are you BUYING options or are you SELLING options? There’s a huge difference between buying and selling, as well as different levels of risk involved between the two. So when you’re buying options, the maximum amount you can lose is the premium you paid. So let talk about a very specific example. Let’s look at a trade I took with TSLA and let’s say that we want to trade a call. So let’s maybe say a 700 call and right now the price is $700. What is the maximum that you can lose? Let’s say that we are bullish on Tesla and we believe that Tesla might go above $750, and we want to buy a call with a strike price of 750. So a 750 strike call expiring next week costs around $1.70 (at the time of writing this article on March 19th, 2021). Now options come in 100 packs, so this means that you’re paying $170 for this option. So in this case, if TSLA does not go above 170 by next Friday, you would lose the $170. So this is very easy, the maximum amount that you can lose is the premium that you paid. On the other hand, you are bearish on Tesla. You believe that it might actually go down to $560 so you’re thinking about a put option with a strike price of 560 that expires next week. A put with a 560 strike price expiring next week is $4.50 so a little bit more, pricier here. Again, since options come in 100 packs, this means that your total risk here is $450 per option traded. It’s the same risk here because it doesn’t really matter whether you’re buying calls or you’re buying puts. The maximum amount that you can lose is the premium. Now, on the other hand, there are SELLING options, and when you’re selling options, this is when your risk is almost unlimited. When you’re buying options, and let’s just say you want to buy a call, this means that you want the stock to go up. So going back to our TSLA example, if we would buy a call 750, that it is expiring next week for $170, if Tesla goes above 750, we make money. If Tesla goes below 750 or stays at 750, we lose the premium or $170. So not really a big deal. Now, how much money could we make on this one? Well, if we buy a call for 750, we have the right to buy 100 shares of Tesla for $750. So let’s say that Tesla closes at $800. So in this case, our profit is $800, minus the $750 that we bought Tesla for, which is $50 per share. Since options come in 100 packs, this means that we would make $5,000 in profits. This is why people love trading options. Because if you think about it, we’re risking $170 and can potentially make $5,000 if Tesla would go up to $800. Now, let’s quickly do an example here for buying a put. So buying a put and in this case, you want the stock to go down. Using our example for TSLA again, we will buy a put with the strike price of 560 for $4.50. So our total risk here is $450. So now if Tesla goes below $560, the strike price here, we make money. Now, if Tesla stays above 560, we lose the premium. But that is the maximum that we can lose. So even if Tesla rallies right now to 800, we would only lose $450. So that is pretty cool, right? Let’s say Tesla goes to $500. So we were able to sell the shares for $560, now we can buy it back for 500. So this would be $60 per share. Since one option equals 100 shares, it means that we would make $6,000 in profits. So as you can see, with options, you can benefit from a stock going up, as well as a stock going down, and the really cool thing is that you can risk a little to make a whole lot. Now, here’s the challenge with this. If you buy a call, you only make money if TSLA is really going above $750. So if it stays below, that’s not enough for the buyer of an option to make money. If Tesla goes sideways well, same here, right? Then you not only won’t benefit from it, but you also lose the premium. If Tesla goes down, you also lose the premium. So if you think about it, there are actually three ways how you can lose money and only one way how you can make money, and this is if Tesla really shoots up. This is why many people, including myself, are interested in SELLING options. Selling Calls & Puts What are the pros of selling options? The first pro is that you don’t need to be right about the direction of a stock to make money. Here is an example I’m in right now (at the time of this writing on March 19th, 2021) with LL Lumber Liquidators. So right here, Lumber Liquidators, I actually sold a put with a strike price of 22. When does the buyer of a put make money? Well, the buyer of a put makes money if it goes below $22. For me, the seller of a put, I make money if Lumber Liquidators goes up, it goes sideways, or it goes down. It can go down all the way to 22. This is a drop of a little over 10%. So if you think about it, if LL can go down by 10% and I am still making money and this is why again, this is why selling options is so fascinating. So you don’t need to be right about the direction and you can keep the premium. So here’s the deal, the premium that you receive is exactly what the buyer is giving you. So the premium is rather small, right? So the cons are the premium is rather small, and this is where your risk is almost unlimited. So back to our example here with Lumber Liquidators. I sold a 45 of the 22 puts, and I received $0.20 per share, so $20 per put option. $20 multiplied by the 45 options means that I’m making $900. So this is the premium that I receive. However, here’s the deal. The buyer of a put has the right to sell 100 shares at the strike price. So what does it mean for me? So the seller, which is me, has to buy LL at $22, and again, this is where one option means 100 shares. So for me here, since I’m having 45 options, this means that I would have to buy 4,500 shares. Because this is where we get to the risks of this strategy here. Now, again, Lumber Liquidators can drop more than 10% and I will be just fine. But what happens if it drops below, let’s say to $20 from $22. OK? So I would have to buy Lumber Liquidators at $22, and therefore I would lose $2 per share. Here, in this case, I have 4,500 shares times $2, this means that I would lose $9,000. Now you get the idea of why selling options is fairly risky, because I’m receiving $900, but if it only goes down by $2, I’m already losing $9,000. But what if it gets worse? What if LL drops to, let’s say, $15, right? Again, I have to buy LL at 22, so I would lose $22 minus $15, $7 per share. Since I have 4,500 shares, time $7, this is where I would lose $31,500. OK. So as you can see, it is super risky if you don’t know what you’re doing. Now, I have been doing this for a long time here, selling premium, and I’ve been doing really, really well. Analyzing Risk With RIDE Let talk about a particular trade that I made with RIDE . I sold the 21.50 put and RIDE dropped. I sold 47 contracts, 47 contracts, which means that I own 4,700 shares at a price of 21.50. RIDE right now (March 19th, 2021) is trading at $13.50. So right now, RIDE is at 13.50. So this means that I lose (21.50, minus 13.50) $8. So I’m losing $8 per share and I’m having 4,700 shares, bringing me down to a total of $37,600. Now, let’s talk about it. How much money did I make selling premium on RIDE? Just on RIDE here. I sold the puts initially, then I sold calls, I sold calls, and I just sold a few more puts. In total on RIDE, thus far, I collected $4,935 in premium, but I also have an unrealized loss of $37,600. So it’s super important that you understand that there is risk involved. Now I know my way out of this. I know how I can trade my way out of this if needed. So I collected $4,900, but right now I’m down that amount. However, this means that my net loss is if I would close it right now, which I’m not intending to do, would be $37,000 minus the $4,935, let’s just say $5,000 to make the math easy, is $32,600. That would be a real loss. This is why it’s super important that you understand the risks when you’re trading options. Safest Options Trading Strategy Now, one of the questions that I receive all the time is, “what is the safest options trading strategy?” The safest options trading strategy is covered calls, and here’s why. When you are trading covered calls, it means you own the stock, and now you are selling calls against it. So what does it mean when you are selling calls? When you are selling calls, it means you have to sell the stock at a certain price. Back to my example with RIDE I own 4,700 shares, and I own those at $21.50. So this is where if I sell calls at 22.50, so this means that I have to sell RIDE shares at $22.50. So how much money do I make? So I bought at $21.50, and I sell at $22.50, so this means that I’m making a dollar profit, $1 profit per share. And since I have 4,700 shares I would make $4,700 plus the premium I receive for selling the call. OK. So this is in addition, and therefore, covered calls are by far the safest options trading strategy. The only way how you can lose with this strategy is when the stock goes down. This is where you already own the stock, and therefore, if you want to sell calls against it, it is the safest option trading strategy, at least based on my experience and my opinion.
REducation
by rockwelltrading
1
Why 90 Percent Of Traders Lose MoneyYou might have heard this, “90% of traders lose 90% of their money in the first 90 days of trading.” This is known as the 90/90/90 rule. I don’t even know if this is true, but it seems that a lot of traders are losing money. So this is why today, we’re going to talk about what causes most traders to lose money. Then I’ll give you practical tips on how to avoid it so that you can be part of the few that actually make money with trading. What Do You Need To Become A Successful Trader? There are three things that you need to really become a successful trader. If you’re missing even one of these things, you already have a big problem. So let’s start, with the first thing you need. This is the most important thing that a trader needs and this is a trading strategy. Now, there are traders out there who are trading without a strategy, and the number one reason that I see traders fail is they don’t have a trading strategy. A trading strategy tells you what to trade, when to enter, and when to exit. So as you can see, a trading strategy doesn’t have to be super complicated, but you need to know what to trade. Here is what I see many traders doing since they don’t have a trading strategy. They are going for the flavor of the day, and the flavor of the day might be something that Jim Cramer is saying, something that Cathie Wood, the famous, or infamous hedge fund manager of Ark Investments is saying, or maybe something that they read in the news. This is the worst thing you can do. I’ve been talking a lot to traders, or not really traders, but people who are getting started in the market, and I ask them, “what are you trading right now?” They usually just name the most popular stocks that are being traded. These are stocks like TSLA , AAPL , AMZN , and NFLX . Then recently, as you know, with the GME hype, the GameStop hype, a lot came up there. But you see, if you’re not trading with a strategy, you are not a trader, you are a gambler. Now the second important piece that you need as a trader is that you need to have the right tools, and I can’t stress this enough. Here’s the deal, if you want to compete in what they call the game of games, if you want to really make it as a trader, you need to have professional tools. Think about it this way, if you only have a strategy without a tool, it’s like trying to win NASCAR riding on a lama, right? I mean, it doesn’t work this way. So it is super important that you have the right tools. You can’t win a car race on a lama or on a donkey, you get the idea, right? The third thing you need to be a successful trader is having the mindset. So you see, you can have the best strategy, you can have the best tools, but if you don’t have the right mindset, you will lose money. You see, in fact, I see it all over. Sometimes people think all they need is the right tool, and they will be successful traders. Or they think all they need is a trading strategy and they will be a successful trader, but that’s not the case. The reason why traders fail is not having the right mindset is because they let emotions get the best of them. The two main emotions that we have as traders are greed and fear. I mean, obviously, we are greedy. We want to make money this is why we get into this game of trading in the first place, at least that’s why I started trading. But then there’s also the fear, the fear of losing money, but you got to be able to control these emotions. We will talk about losses in a moment, but one of the challenges, because of greed, traders will often trade too often, meaning that they are overtrading. Have you ever been guilting overtrading? It happened to me at the beginning of my trading career. I remember when I was still a young trader and new to the whole trading game somebody told me, “if you want to make it as a trader, you have to take at least 100 trades a day.” This person was probably a broker because I tried this, and it is impossible. I traded on a one-minute chart, tried to make 100 trades a day, and I found it just didn’t work this way. Then there is revenge trading. Revenge trading is something that I did in the beginning because I thought, after I took a loss was the time for me to make back the money that I lost. Something important that you need to understand is that the market doesn’t owe you anything. Sometimes the markets give, and sometimes the markets take away. So this is why revenge trading is something that you need to avoid at all costs. The good news is in the long run, usually, the market likes to give, at least to those who are serious. You must understand that losses are part of our business as traders, and it is sometimes really easy to become overconfident. However, whenever you think that you have the markets figured out, is when the market is going to throw you a curveball. There will be always surprises and situations that you have never encountered. Some call these black swan events. Often what I see is that many traders who are new to trading simply focus on the wrong things. Most young or new traders focus mostly on the entry. They think if they can just time the entry, this is when they’ve figured it all out. Well news flash, money is made and lost when you exit a trade. So timing the exits is almost more important than timing the entries. Sometimes traders focus on just having a strategy with a high winning percentage, but this is another mistake. You don’t need a high winning percentage. In fact, you can make money with trading even if you’re wrong half of the time. The magic happens actually when all three things are coming together. So how can you do this? I want to share a little bit with you about what I am doing. Well, first of all, let’s talk about trading strategies. The Trading Strategies First of all, what you need to understand is that there is no “best” trading strategy. It amuses me actually when people argue with me about this. People will ask me what will you do if this or that happens. Well, you see this is where I’m not saying that you should trade my trading strategies. I show you what I personally do, and how I’m making enough money to trade for income to trade for a living, and let you make the decision if it’s right for you. I can’t tell you if my strategies are right for you or not, but I can tell you there is no “best” trading strategy. Either a trading strategy is making money or it doesn’t, right? So if a strategy is making someone money, I would never, ever criticize anybody who is making money with that strategy. Who am I to say you’re doing it wrong? When it comes to the strategies I use, sometimes people ask me, “why do you do it this way? Why don’t you do it the other way?” and I’ll be happy to explain to you why I do certain things. It’s always interesting to see that some people feel that I need to become a better trader, and I appreciate your concern for me, but I’m actually doing pretty good. A trading strategy must fit YOU. It must fit you in terms of capital requirements. There are some trading strategies that you can start with as little as $5,000. There are other trading strategies that require more money. So you need to make sure do you have enough money for this particular trading strategy. The other thing might be time requirements. Some trading strategies require you to sit in front of the computer all day long. Now, this is not for me. I personally like to watch the markets for 10 or 15 minutes before they open, and then for 30 minutes after they open. So personally my own trading is usually just 45 minutes in the morning. Now, fortunately, I don’t have a job, I have nothing else to do but watching the markets, this is why I do it. However, some of the trading strategies that I trade, actually don’t require you to watch the markets at all. So there are time requirements to consider, there are capital requirements to consider, but then also possible drawdowns you need to keep in mind. Without risk, there’s no return. No risk, no reward. See, if you don’t want to take any risks at all, and make sure that you never, ever lose any money, then you should put your money into a savings account. In a savings account your money will be safe, right? But it also earns only about a quarter percent right now. So if you want to make more money with trading, then you have to risk some money. So there’s a fine line regarding the risk and rewards ratio. So you need to be aware of the risk, and the more risks you’re willing to take, the higher the rewards will be. But keep this in mind when you’re looking at a trading strategy, there are a few things where it might make sense for you to trade the strategy or it might not make sense for you to trade the strategy. The PowerX Strategy There are two trading strategies that I like to trade, and the first strategy is the PowerX strategy. Now, for the PowerX strategy, there are a few criteria here according to whether or not it's the “best” strategy. So, first of all, the PowerX strategy is great for a trending market, and it doesn’t really matter if the market is trending up or down as long as it trends. It does not perform well in a sideways or in a choppy market. This is what we are having right now, and this is why right now I am not trading the PowerX strategy as much as I used to last year when we did have trending markets. Now, trading with the PowerX strategy requires a minimum of $5,000. So if you have five to $10,000, that’s actually perfect to get started with the strategy. If you have less than this, I don’t think that this strategy is for you. Honestly, I don’t know a trading strategy that you could trade with less than $5,000. This is where I’m not claiming that I have the best trading strategies. I have trading strategies that I personally have traded for many, many, many years that have stood the test of time and that are proven to make money, at least for me. Now the PowerX Strategy is perfect for growing a small account, and here is why. With the PowerX strategy, you can apply money management, and money management is the turbo boost in your account. It can help you to take your trading to the next level. Now in terms of time requirements, when we talk about this, it takes around 15 minutes per day and you can do this absolutely while the markets are closed. So if you have a demanding daytime job that doesn’t allow you to step away and look at the markets, then actually The PowerX strategy is perfect for you. Again, it does have some limitations so it doesn’t work all the time. So you need to know when to use this strategy. The Wheel Strategy The other trading strategy that I like to trade is The Wheel Strategy. So the Wheel Strategy is perfect for a market that going up, going sideways, even when it is choppy, or when the market is slightly going down. It is not good for a bear market where the market is going down. So you need to know when to apply what strategy. This is where, in the same way as you have multiple tools to fix the home, you need to have multiple trading strategies. So here, when you’re trading The Wheel Strategy, it is an options trading strategy only. Here specifically, you are selling premium. So this is where you could have a large drawdown, which is possible if you’re stuck in a position, as I am right now. I am stuck actually in two positions. So let me show you the two positions that I’m stuck in. One of them is AAPL , I bought it at 133. Right now, it is trading at 120, so I’m losing $13 per share that I own and I own 800 shares. So the question is, are we in a bear market? No, we are not in a bear market right now. Not at all. We are somewhat in correction territory, and correction territory is when a market is going from the top from the recent high to down more than 10%. That is how a correction is defined. According to the Nasdaq, we’re clearly in a choppy market. Since the beginning of the year, we have been grinding higher, coming back, going up, going sideways. In fact, year to date, the Nasdaq is down .37%. So pretty much haven’t moved since the beginning of the year, but we are not in a bear market. So you could have a large drawdown while you’re stuck in a position. Let’s talk about the other position that I’m in. The other position that I’m in is RIDE , and RIDE is not doing well at all. So I’m flying a rescue mission here right now. I bought RIDE at 21.50, and right now it is trading at half of what I bought it for. So obviously that’s not good at all, right? So what I need to do right now, is work my breakeven all the way down by actually doing dollar-cost averaging. Right now, I sold some more puts trying to bring down my cost basis from 21.50 to 18.70, then to 16. What I’m hoping for, and this is part of this strategy, is that I am getting a quick bounce. Now, absolute full disclaimer. What happened here with RIDE, to be honest, why I got into this is because I was getting greedy. This is where trust me, I’ve been trading now for more than 20 years, even after this, I love money. I saw a lot of premium on RIDE and I got blinded by the premium. This could be the one trade out of, I believe, now close to 150 trades where I have to take a loss. So it happens. Losses, as I said, losses are part of the business, and never let greed get into your way. So you could have a large drawdown. So here with this strategy, you need a minimum of, I would say, $10,000 in cash and you have to put it into a margin account so that you get $20,000 in buying power. If you’re trading an IRA, you need at least $20,000 in your IRA because in an IRA you don’t get any buying power. Time requirements for this strategy also require about 15 to 30 minutes per day. I think the best time to trade this strategy is during the open. So this means from 9:30 to 10 a.m. Eastern Time. If you have been following me for a while, then you know, I’m not standing here and telling you, “You have to trade this way. My trading strategies are the best.” I would never do it because they may, or may not fit your style, which is absolutely fine. The Best Trading Tool, The PowerX Optimizer However, if you choose to trade these trading strategies, this is where I believe that I have the best tool in the world for trading the strategies. I’m absolutely biased, but the tool that I have here is the PowerX Optimizer. Here is why I think that this is the absolute best tool for it because this software has been programmed for these two strategies specifically. Now, if you look at any other tools, for example, like TradingView, it is software with which you can do some backtesting and has a bunch of indicators built-in. So first of all, this software, I feel is very complex to learn because you have multiple functions. And it basically allows you to trade any trading strategy whether you use a moving average strategy, you can trade with it, or you’re using a MACD strategy, you can trade with it, or you’re using Bollinger bands, you can trade it with it. But you see, especially with the PowerX Optimizer, it has been designed to support the PowerX and the Wheel Strategies. This is where it shows you exactly the three things that you need to know when you have a strategy. It tells you exactly what to trade, it tells you exactly when to enter, and it tells you exactly when to exit. I’m using this tool every day, and I wouldn’t want to trade without it. I want to be absolutely honest. If you would take PowerX Optimizer away from me, even though I know these two trading strategies inside out, it would be super difficult to find the best stocks to trade. The other super important thing that PowerX Optimizer does is that it actually tells me what would have happened in the past if I had traded this particular stock group on here for example, according to the rules of the PowerX Strategy. This is important to me because it gives me more confidence. The trading report basically tells you if you had followed the rules of the PowerX Strategy, what would have happened over the past year if you had traded a stock. The summary it shows me actually the ROI, it shows me how many winning trades and losing trades I would have had, what is the winning percentage, the profit factor, the average win, and the average loss. This here is based on a $10,000 account. So see if you have a $10,000 account, and your average loss is $122, I mean you’ll be fine, right? You’re not wiping out your account. What is important to me in a tool? So first of all, what I want to have is a powerful scanner, because what the scanner does, a scanner tells me what to trade. Now, the second thing is I want to see what would have happened if I traded this stock with this strategy. This for me is super important. Then, of course, I want to get all the important data for trading. This means I want to know how many stocks or options should I trade, when to enter, and when to exit. So these are the important things. This is, of course, combined with what can I expect from this trade. It’s so important that I also see the risk and reward ratio. So here, for Groupon, I can expect to risk a dollar and trying to make $2.33. Now let me ask you, does this sound good? It sounds pretty good to me. With the PowerX Optimizer, I also have The Wheel Calculator and The Wheel Scanner. The Wheel Scanner shows me what are the best candidates for The Wheel right now. I’m actually super excited because we are about to release version 2.0 of The PowerX Optimizer. Within the software with the new update, we distinguish between the PowerX Strategy and The Wheel Strategy.
TVC:NDQEducation
by rockwelltrading
1
When To Take Profits on Options I’m Markus Heitkoetter and I’ve been an active trader for over 20 years. I often see people who start trading and expect their accounts to explode, based on promises and hype they see in ads and e-mails. They start trading and realize it doesn’t work this way. The purpose of these articles is to show you the trading strategies and tools that I personally use to trade my own account so that you can grow your own account systematically. Real money…real trades. Options trading is really fascinating, and it’s a great way to make money, and I think it is very important to know when to take profits, especially if you like trading The Wheel as I do. So the question is, when should you take profits when trading options? How exactly do you figure this out, is there a formula for it? In this article, I’ll share some guidelines for how and when you should take profits on an option trade. We will answer the question of whether you should let options expire or take profits early. I will show you some very specific examples of two trades that I have going on right now (at the time of this writing on March 17th, 2021). One of them, I took profits today, and the other one I’m still holding on and I will show you exactly why. ]How To Calculate Profits On Options Firstly, let’s talk about how to calculate profits on options. In order to address this, there are two types of options traders. One type of options trader are ones that are buying options, and the other, which I feel is very lucrative, and this is what I’ve been doing for a long time, is selling options and collecting premium. I want to actually talk about selling options and receiving premium, because this is, as I said, what I’ve been focusing on recently with trading The Wheel Strategy. My year-to-date profits on this account so far are more than $54,000 selling premium on options, and I’ll show you exactly how to do this. So when selling options, you’re receiving premium, and for me, the most important metric here is the so-called premium per day or PPD. MARA Example The first example that I want to give you is my position with MARA. Looking over my transactions with MARA over the last 30 days. I sold puts at a strike price of 20, and for this, I received $0.28 in premium per option that I sold. Now options come in 100 packs, so this means that per option I made $28. Now, in this specific example, I sold 50 options total, so this means that I’m receiving a premium of $1,400. I put this trade on March 10th, and these options expired on 3/19. This is $1,400 in premium in 9 days. This comes to $155.55 in premium per day, or PPD. Now this includes weekends. My rule is I’m buying back the option when I can get 90% of the maximum profits, but there’s an exception to this rule. First, let me tell you what that means. So again, I sold each contract for $28, for $0.28. The idea is to buy back the option at $0.03, and this is exactly what I did today (March 17th). So we have another two days to expiration. So today, I bought back a total of 50 contracts at $0.03, and by doing so I made $0.25 in profits on MARA. Now, this is where again, we’re looking at 50 contracts, times $25, so this is $1,250. I was in this position for 7 days. So $1,250, divided by 7 days, means that I made $178.57 a day. Let’s just round to $179 per day. As you can see, $179 is more than the $155.55 that I planned per day. Now let’s think about it. If I would keep MARA right now, if I would keep this option until expiration, but what would happen? I would make an additional $150 in three days. This means that now my premium per day is only $50 per day. This doesn’t make sense to me because this here is actually bad, because my plan was to make $156 per day, and I was able to make $179 per day by buying the options back. If I would hold on to this trade and let it expires worthless. So this is where here, and let it expire worthless, right? This is what would happen. I would make an additional $150 in three days and the premium per day would only be $50. That does not make sense to me at all. This is why here in MARA, it made sense to buy back the put option because by doing so, it frees up buying power meaning that now I can sell more puts. So the idea here is that I’m selling more puts and making more money on the new puts than I would make holding on to MARA. DKS Example Let’s go over another example with a position I have right now with DKS . I sold the 66 strike on March 10th. I sold 15 of them and I received $75 in premium. 15 contracts times $75 comes to $1,125. So let’s do the math right now and see if it makes sense to close this trade today (March 17th) or if we should keep it, and we’re using very similar logic here. So we sold the 66 put expiring March 19th, and we received $75 per contract for it, $1,125 total. We then divide this by 9 days to get to our premium per day, which is $125. So right now, on March 17th, let’s see how much DKS is still worth. Right now, the bid/ask for DKS is $0. 05 over $0.10, and that’s really interesting because I want to buy it back at $0.07. Let’s say right now, if I would place an order right now, I could buy it back at $0.10. Should I do it? If I did this, I would make $75, minus $0.10 ($10 per contract), which is $65 per contract. For all 15 contracts, I would make $975. We find our PPD by dividing $975 by 7 days, which comes to $139. So if I really wanted to, and if I needed to free up some buying power, I could do this. But let’s see what happens if we hold this for a few more days. So if we hold DKS until expiration, we can make an additional $150. It might actually make sense to close it out because $150 over the next three days does not make a lot of sense. When I looked at the option earlier, DKS suddenly jumped from 78 to almost 79. This is a 10% jump in 30 to 45 minutes. When we opened this morning, first, we went down, and then we went a little bit up, and then we were hovering right around where we opened. Earlier this morning, the DKS put was trading at $0.25. So the question is earlier this morning, would it have made sense to close it? Earlier today on March 17th, I could have bought it back for $0.25. So that wouldn’t have made sense, right? Because then if I’m buying it back for $0.25, I would only make $0.50. So this here, $0.50, this is then $750 in seven days, and if we divide $750 by 7 days, this is $107 premium per day. As you can see, the $107 premium per day is less than what I expected. If I would hold DKS to expiration, we can make an additional $0.25, $25 times 15 contracts is $375. Now, if you take the $375 in 3 days, that would be $125 premium per day. So when I’m getting $125 premium per day, this is when it does not make sense to sell it just yet. Should You Take Profits Early? So this is the important thing because the question always is, do you take profits early, or hold until expiration? Well here’s my formula for this. So I want to give you a very specific formula that you can use if you want to. If the current realized premium is a premium per day, PPD, is larger than the planned PPD, this means close it out early. If the remaining premium per day is smaller than the planned premium per day, close it. Only if the current realized premium per day is smaller than the planned premium per day, in this case, hold it. If the remaining premium per day is larger than the planned PPD in this case, you want to hold it. Summary This is why today I wanted to show you my formula for when to take profits on options, especially when you are an options seller. You see, selling options and receiving premium is what we do with The Wheel Strategy, and the most important metric here is the premium per day (PPD). This where using the PPD, you can actually get down to a formula of when exactly you should buy or sell. This is where it’s just a good rule of thumb if you don’t want to do all these calculations. So the rule of thumb is I close a trade when I can realize 90% of the maximum profits.
NASDAQ:MARAEducation
by rockwelltrading
3
The japan titans & worldwide investors have made up their mindAnother idea on the yen which is waking up from its slumber of uncertainty, its 3 years slumber 😴. Which allows me to activate my crystal ball & predict the future. Hey I even threw an indicator in here, some nobs like them, it pops out but maybe not everyone sees it, the yen is breaking with conviction for the first time since December 2016. If you don't get what this means just keep reading. Back in 2016 the stock market was stagnating, George Soros kept shorting it, many funds were shorting it, the JPY had a major decline after a choppy uptrend then some sideways, and after the big very visually noticeable Yen decline, the US stock market had this big big rally for all of 2017 that Trump kept throwing at everyone. This should clarify things, if it doesn't well contact me to get roasted for free 😀: If you zoom in in 2016 you even get the same shadow from all the useless parasites stat-arbing this BoJ next meeting 18 or 19 March, rate going to stay the same for sure, continuing to boost the economy, really boosting the Wall Street hedge fund industry economy. As a conclusion, perma-bears are going to get laughed at again on CNBC Squawk Alley and other intelligent programs. Poor Peter Schiff. Nouriel Roubini the great nobel prize is recommending to short since 700 points LOL it's going to 5k soon. The boy that cried wolf is coming soon, no one is going to listen to any warnings, they must be sick of uncertainty & fear and more convinced than ever.
by MrRenev
4
Why Most Traders Lose Money — Here Are The Top 3 ReasonsI’m Markus Heitkoetter and I’ve been an active trader for over 20 years. I often see people who start trading and expect their accounts to explode, based on promises and hype they see in ads and e-mails. They start trading and realize it doesn’t work this way. The purpose of these articles is to show you the trading strategies and tools that I personally use to trade my own account so that you can grow your own account systematically. Real money…real trades. Anyone that has been around the markets and trading for any period of time has probably heard that most traders lose money. In fact, there’s actually an old trading adage that says: 90% of new traders will lose 90% of their account within 90 days. So after reading that, before you reach for your broker’s phone number to wire out all of your money… how about I let you in on a little secret: If you follow some simple rules and avoid these 3 mistakes, you can be in that minority of traders that actually make money consistently in the markets. And if you are currently making one or all of the mistakes, I’ll also show you exactly how to fix it. So let’s dive in! 1) Most Traders Enter A Trade Too Late The first thing on my top 3 reasons why traders lose money is: Most traders get into trades WAY too late! There are a lot of reasons this happens, but most commonly it’s because new traders are basically gambling. They’re buying stocks or options based on news, or a hot stock tip, which really isn’t what I would consider a strategy. So let me give you a great example with a company I’m sure you’ve heard of: Uber Technologies (Yes, enemy #1 for taxi drivers worldwide.) Last year UBER , known for its popular ride-sharing and food delivery services, IPO’d in May (2019). With the disruption this company caused, their IPO had a lot of hype surrounding it, bringing a lot of investors to the table. On the day of their IPO, UBER opened at $42/share and people poured into the stock. For a few weeks, the stock had a turbulent, roller coaster of a ride all the way to as high as $47.08/share, a little over a 13% increase since its IPO. And around this new high, more and more inexperienced retail traders piled in thinking that it would continue its bullish run with dollar signs in their eyes. The mainstream media was continuing to hype it and more and more and investors and traders gobbled up more of the stock. Looking at the image below, you’ll see after that high of $47 things got UGLY fast, with UBER falling day-after-day, week-after-week. It wasn’t until November of 2019, about 7 months after their IPO that UBER found a temporary bottom at $25.58, down more than 45% from its high of $47.08… and I would bet there were a LOT of people who bought near or at the highs and were still holding at that point. So what did retailer traders do when UBER made a bottom? Yes, once again most (losing) retail traders didn’t get in at, or even around the bottom… once again, they piled as UBER neared its previous highs. And as you’ll see yet again, UBER rolled over on its way to making another new all-time low this past March 2020 going all the way down to $13.71/share. That’s more than a 70% decrease from its ATH and yes, I’m sure some investors rode it all the way to the bottom. Now I want to share a second example with you, so let’s take a look at Amazon AMZN . So as you know, AMZN is a HOT STOCK and last year it has a crazy move where it crossed $2000/share…. and yes, just like our example with UBER , inexperienced retail traders piled in at the very top. Once again, in the weeks that followed, AMZN’s stock tanked leaving those who’d piled in dazed and confused, now holding onto sizable losses. So as you can see, the first of my top 3 reasons most traders are losing money is simply because they’re piling in way too late in a stock’s move, generally near a high. Now on to reason number 2: 2) Most Traders EXIT Too Late Yes, as you can imagine if people are getting in too late, well, they’re also typically getting out too late as well. So let’s talk about why this happens. Why do retail traders tend to hold onto trades way too long, either turning a small loss into a BIG loss or sometimes even more painful, turning a winner into a loser? Let’s take a look at another example with an UBER competitor, LYFT . Like UBER, LYFT also had its IPO in 2019, opening up at $87.24/share… but that didn’t last long. In less than two months, LYFT went as low as $47.17… and what do you think those who bought during the IPO are saying right about now: “Oh, I’m holding it because IT WILL TURN AROUND!” This is generally where I see traders get religious Instead of ‘taking their medicine’ and getting out when the trade moved against them, they held on and are now pleading and praying the stock will turn around. I hate to be the one to break it to you, but ‘hope’ is not a strategy… at least not one with a winning trading record. Now on to number three in our list of top reasons why most traders lose money: 3) They Don’t Have A Trading Strategy As you’ll see, I’ve saved the best for last as this one alone can help fix or eliminate the other two we just discussed. So first, let’s answer this question: What Is A Trading Strategy? Well, a trading strategy gives you three key pieces of information you need before ever entering a trade: 1) It tells you WHAT you are trading. Is it stocks, options, futures, cryptocurrencies? This is answered in your trading strategy. 2) It answers when you ENTER a trade. 3) It answers when you EXIT a trade and that’s exiting with a profit or loss. Now, let’s take a look at an example here using TSLA on how I make trading decisions. I like to look at three different indicators, that when in alignment, give me a clear signal to go long or short a stock or ETF. As you can see on the charts, back in December of last year (2019) my indicators gave us a long signal on TSLA at around $370/share. And the indicators told me we were good to go until around $850/share. All I had to do is let the indicators tell me when to get in and when to get out… no guessing, hoping or praying. Summary So as you can see, there’s actually no big secret to why most traders are losing money. It’s actually pretty simple to see and correct, but it takes a plan and a little bit of discipline. If you’re brand new and not sure where to get started, I’ve written The PowerX Strategy, a book that outlines my EXACT trading strategy for trading stocks and options.
TVC:NDQEducation
by rockwelltrading
1
$50 MILLION REGISTERED DIRECT OFFERING case study$VISL ANNOUNCES $50 MILLION REGISTERED DIRECT OFFERING PRICED AT-THE-MARKET UNDER NASDAQ RULES $VISL today announced that it has entered into a definitive agreement with institutional investors for the purchase and sale of 18,181,820 shares of its common stock and common stock warrants to purchase up to 9,090,910 shares of common stock at a combined purchase price of $2.75 per share in a registered direct offering. The common stock warrants will be immediately exercisable, have an exercise price of $3.25 per share and will expire five years from the date of issuance. The closing of the offering is expected to occur on or about February 8, 2021, subject to the satisfaction of customary closing conditions. finance.yahoo.com ANNOUNCES CLOSING OF $50 MILLION REGISTERED DIRECT OFFERING PRICED AT-THE-MARKET UNDER NASDAQ RULES finance.yahoo.com What we can learn from the registered direct offerings?
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by AlenCiken
1
Roku review for February. Lets see what March will bring. Hello traders A lot of my ideas of late have been Forex based so time to show how one stock I followed performed for me in February. The stock in question is Roku and I'm working the one hour time frame here. Only two trades last month a long and short. Both trades were a 1:4 risk to reward ratio. Once the trade has played out I simply wait for the next signal alert and go again if any present this month. The purpose of this idea is to show the adaptability of our strategy on different instruments. As with all my ideas back tested data can be found at the foot of this header. Back test data is based on 10 contracts per trade with a £1000 starting capital. The back test data is from Jan 2019 to now. Quick overview of the strategy in use. The strategy is a trend based strategy. The inner workings of the strategy are 5 individual strategies rolled into one . Trades are only valid when all 5 confluences line up. At this point the trade presents on the chart. Alerts can be set and the the strategy can also be automated. No excess time spent at the charts Adaptable strategy to suit your trading style. Works on any instrument and time frame. Want too know more? Sure drop me a message and feel free to ask any questions.
NASDAQ:ROKU
by RichScott
1
How I’ve Improved Productivity in My Trading DayI’ve been trading for a long time, and over the years, I’ve learned different ways to make the most of my time. Today, I want to talk about three ways I boost productivity in my trading day: - Using my PowerX Optimizer to quickly scan for long and short trading ideas. - Using my Wheel Income Calculator to find attractive premium collecting ideas. - Having a trading plan and following that plan. In this article, I’m going to break down each one of these and explain what they are. I’ll also explain how they help me streamline my trading. This gives me more time to focus on other things I’m interested in, like my business and real estate. 3 Pillars To Trading I always say there are three pillars to trading: - You need to have a trading strategy. - You need to have the right tools. - You need to have the right mindset. For me, I trade two strategies: PowerX and the Options Wheel. And I developed my own software tools to help me trade these strategies quickly and efficiently. The PowerX Optimizer software shows me what I should trade, when I should enter, when I should exit based on my preferred criteria, and my Wheel Income Calculator tells me which option strike has the best risk/reward. If trading software doesn’t show me this, it’s not allowing me to make the best use of my time. Let’s take a closer look at these software programs, starting with the PowerX Optimizer. PowerX Optimizer With my PowerX strategy, I’m looking to buy calls on stocks trending higher or buy puts on stocks trending lower. The PowerX Optimizer is a software I programmed for myself, my head coach Mark, and my son. A few years ago, we made it available to everyone. This software answers the three questions I’m looking to have answered when I’m looking for stocks - What to trade. - When to enter. - When to exit. The PowerX Optimizer will answer all three of these questions for you. Now, I had the software programmed for myself because I wanted all my criteria in one place. With the PowerX Optimizer, I can scan for my basic criteria that I set within the software. For instance, I want to see a 60% return on investment over the past year, I also want to see stocks that are between $5 and $200, and I want a profit factor higher than 3 and a risk/reward higher than 2. This is the criteria I use for trading this strategy. Your criteria may be different. The scanner finds the best stocks and options for me based on my criteria. I certainly don’t want to just stumble across a stock or trade everyone on TV is talking about. Worst case scenario, if nothing meets my criteria, I simply move on. Every day this scanner produces a list of stocks that I potentially want to trade — in less time than it takes to make a cup of coffee! Talk about a time saver! In the beginning, I would just use charting software like TradingView, and I would go through a bunch of stocks every day to see if they met my criteria. It got to the point where I figured there had to be an easier way, which is why I had the PowerX Optimizer developed Instead of spending hours and hours sifting through charts and doing the math, I’m able to find a handful of stocks to look through every day in just minutes. This frees up my time to focus on other things. The Options Wheel Calculator With my Options Wheel strategy, the idea is to “get paid to wait until you buy the stock.” So I’m looking to sell a put and collect premium, and I want to pick a strike that coincides with the level I would feel comfortable buying the stock. Ultimately, I want to get assigned, and then I’ll look to potentially sell covered calls on the stock. The tool I use to identify stocks and options I want to trade with this strategy is the Wheel Income Calculator. The Wheel Calculator pulls up stocks and tells me the minimum option premium I need to collect to make this trade work for me, and the risk/reward setup for each strike. I have set aside $500,000 in buying power for this strategy. That’s what works for me. It does work with smaller accounts if that’s what you have to work with. That’s why I love these tools. They have made my life so much easier. I’m not just picking a trade based on a gut feeling. Instead, I’m trading with a systematic approach that’s based on data. Remember, I like to trade for SCR Profits. SRC stands for Systematic, Repeatable, and Consistent. Trading Plan And that leads me to the last thing I want to talk about today: having a trading plan. You see, having a trading plan is key to having the right mindset to trade. There are three key parts of a trading plan that I’ve already mentioned, but again, they are: - What you’re going to trade? - When you’re going to enter? - When you’re going to exit — both for a profit and a loss. This is also where those limit and stop-loss orders I mentioned earlier come in handy. Limit orders allow you to tell your broker the price you want to get filled, and if you get that price, you move on. Same with stop-loss orders. You tell your broker what point you want to get out of the trade, and if the stock hits that level, you’re out. This allows you to not be tied to your computer, watching every tick the stock makes and opens up your day to allow you to focus on other things. I cannot stress enough how important it is to be prepared when you’re trading — and to have a plan before you enter a position. So, as you can see, by defining my strategies, I developed tools like the PowerX Optimizer and Wheel Income Calculator to help me find trades quickly and efficiently that work with my rules and my plan. I hoped this helped and I’ll see you at the next one.
TVC:SPXEducation
by rockwelltrading
1
$DYNT Announces Extension of Key Distribution AgreementDynatronics Corporation Announces Extension of Key Distribution Agreement Bird & Cronin Renews Group Purchasing Agreement with Intalere for Orthopedic Soft Goods and Bracing Dynatronics announced today that its wholly-owned subsidiary, Bird & Cronin, LLC, renewed its purchasing agreement with Intalere, one of the leading national group purchasing organizations in the healthcare industry. The new agreement which extends the partnership through January 2024. Intalere members will receive negotiated pricing on our full line of orthopedic bracing solutions for spine, upper and lower extremities including key products such as the Sprint® air walker boot and U2TM wrist brace. With more than 100,000 members from healthcare organizations all over the country, Intalere members make nearly $9 billion in purchases annually. finance.yahoo.com
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by AlenCiken
Apple shortThe breaking of the purple channel pushes the price down. The formation of a red channel is another sign of the strength of the sellers. The third sign is the increase in volume within the red resistance range. in return The center line of the green channel, which is orange, has usually been strong, and the Trend Magic line has sometimes been a good support line The lower shadow of the one-hour candlestick was large when hitting the resistance of the red descending channel These are also signs of the power of buyers. But the power of buyers seems to be less than that of sellers because the signs of the body are weaker. We can wait a little longer until everything is clear, but in this case we may lose a lot of profits! Apple stock prices will probably go yellow. The range of $ 100 to $ 103 is good to buy, but people who want to take the risk to buy the stock cheaper and of course they may not be able to buy! They can wait until Apple shares hit the bottom of the green channel! Also, if during the first 2 or 3 days of next week and the price manages to break the red downward channel upwards or the price manages to return completely to the purple channel, it is a good time to buy! Personally, I find the yellow route more probable. But for more investments, I am waiting for the market to determine its path better and more!
NASDAQ:AAPLShort
by AliSignals
2
Berkshire Grey Announces Business Combination with $RAAC spacBerkshire Grey, a Leader in AI-Enabled Robotics and Automation Solutions, Announces Business Combination with Revolution Acceleration Acquisition Corp Combined company to have an estimated post-transaction equity value of up to $2.7 billion Transaction expected to provide up to $413 million in cash proceeds, including a fully committed PIPE of $165 million anchored by Chamath Palihapitiya, Founder and CEO of Social Capital, Hedosophia and funds and accounts managed by BlackRock Current Berkshire Grey shareholders Khosla Ventures, New Enterprise Associates, Canaan Partners and SoftBank Group Corp. rolling 100% of their equity in the combined company Berkshire Grey expects to have $507 million cash, which will be used to fund operations and support new and existing growth initiatives, and no debt on its balance sheet following the combination. The intellectual property supporting BG’s market-leading solutions is protected by more than 300 patent filings. The intellectual property supporting BG’s market-leading solutions is protected by more than 300 patent filings. Transaction is expected to close during the second quarter of 2021 and is subject to approval by RAAC’s stockholders and other customary closing conditions. finance.yahoo.com
R
by AlenCiken
$UAMY Announces Receipt of Warning Letter from NYSE AmericanUnited States Antimony Corporation Announces Receipt of Warning Letter from NYSE American The basis for the Letter is that the Company sold shares of its common stock in a manner that violated Sections 301 and 713 of the Company Guide. Trading in the Company's common stock has been halted since before the opening of trading on Wednesday, February 17, 2021, as NYSE Regulation has assessed these rule violations. The violations relate to two non-underwritten transactions involving the sale of an aggregate of 26,290,000 shares of common stock at a discount to the market price at the time of each transaction, with the first transaction, which closed on February 3, 2021, involving the sale of 15,300,000 shares of common stock at a purchase price of $0.70 per share, and with the second transaction, which closed on February 16, 2021, involving the sale of 10,990,000 shares of common stock at a purchase price of $1.30 per share. In light of the very close proximity in time of the two transactions and the fact that both transactions involved substantially the same group of purchasers, NYSE Regulation determined that these issuances should be aggregated for purposes of Section 713 of the Company Guide. Together, the two transactions covered approximately 34.4% of the common stock outstanding. Section 301 of the Company Guide states that a listed company is not permitted to issue, or to authorize its transfer agent or registrar to issue or register, additional securities of a listed class until it has filed an application for the listing of such additional securities and received notification from the NYSE American that the securities have been approved for listing. Section 713 of the Company Guide requires shareholder approval when additional shares to be issued in connection with a transaction involve the sale, issuance, or potential issuance of common stock (or securities convertible into common stock) equal to 20% or more of presently outstanding stock for less than the greater of book or market value of the stock. As stated in the Letter, the Company failed to submit a completed listing application in advance of the February 16, 2021 transaction to obtain advance approval as required by Section 301 of the Company Guide and also did not obtain shareholder approval for the aggregate issuance of 26,290,000 shares that exceeded 20% of the common stock of the Company outstanding as required by Section 713 of the Company Guide. NYSE Regulation noted in the Letter that, after it became aware that the Company had entered into a purchase agreement in relation to the second transaction, NYSE Regulation informed representatives of the Company that it would be a violation of the applicable NYSE American rules for the Company to close the second transaction without first obtaining shareholder approval . Notwithstanding this clear guidance from NYSE Regulation, the Company went ahead with closing the transaction without notifying the Exchange. The Company has been advised by NYSE Regulation that the Company's common stock will resume trading on the NYSE American following the issuance of this press release and the filing of a Current Report on Form 8-K disclosing the receipt of the Letter, which the Company anticipates will be prior to the open of trading on Friday, February 19, 2021. finance.yahoo.com
AMEX:UAMY
by AlenCiken
KeyBanc Capital analyst Philip Gibbs raised rating- $10 target $TMST surged higher on very heavy volume, after KeyBanc Capital analyst Philip Gibbs said it's time to buy the steel maker's stock as the macro recovery is unfolding. Gibbs raised his rating to overweight, after being at sector weight since July 2018, and set a $10 target for the stock, which is 19.8% above current levels. Gibbs said his new bullish view "post due diligence" reflects the macroeconomic recovery, better contract and spot pricing and widening raw material spreads, as well as "self-help," which includes cost cuts. The latest available data showed that short interest was 9.72% of the public float.
T
by AlenCiken