Why You Shouldn't Summarily Dismiss My "Unofficial" Investment Opportunities
As both are up huge already in a few days
For those of you that traded the two “unofficial” investment opportunities I discussed a few days ago, both of which were put option strategies, you will be sitting on very significant profits at market open today. This is precisely why I stated in that post, that even though both stocks had not reached the personal minimum price levels I had set for myself to enter these two specific trades, I was discussing them as “unofficial” trades for those that possessed a higher risk tolerance willing to execute investment strategies that, in my opinion, presented a “medium risk, medium reward” entry point. My “unofficial” investment strategies are strategies that I believe have a high probability of a profitable payoff, but contain more risk that I desire, but yet still can be very appropriate for those with higher risk tolerances.
Though I always state that I only personally like to enter option trades that I feel are “low, risk, high reward” strategies, as indicated here by results posted in this article , occasionally I will post “unofficial” investment opportunities for those that have higher risk tolerances than mine, as my risk tolerance is very conservative. And for these “unofficial” opportunities, I rarely post exact buying parameters, for if I do, then they would be in my eyes, “official”, not “unofficial” opportunities. But let’s observe what has happened since I published that post, and why I stated my “unofficial” investment opportunities should not be hastily dismissed by all, especially by those with a higher-than-average risk tolerance.
In that post, I stated that one stock I had been tracking for months had already entered the price zone for which the option strategy could be executed for those with higher risk tolerances. Furthermore, the other stock was just pennies per share away from the minimum share price I had targeted for a put option strategy. However, I stated that personally, due to my low risk tolerance when executing options strategies, I desired higher share prices for both stocks than the ones that existed at the time were I to execute these strategies myself.
Consequently, I specifically listed the share prices for these two stocks that I felt would convert put option strategies on both stocks from a “medium risk, medium reward” opportunity to my desired “low risk, high reward” opportunity. Unfortunately, for me, both stocks moved respectively to eighty cents a share away from my price target to less than two dollars a share away from my price target, but they did not hit them. Thus, I refrained from executing these strategies, while a handful of you with higher risk tolerances wrote me emails stating that the set up was decent enough for you to enter my discussed strategies, as you agreed with the merits of the setup.
Let’s discuss what has happened since then. Of the two stocks for which I discussed execution of put options just a few days ago, one stock has already plummeted by 12.67% already in just a few days of trading and is down an additional 4.67% pre-market this morning for a total collapse of 17.34% in shareprice. The second stock has since fallen 8.03% in share price in just a few days, and is down another 6.19% pre-market this morning at 9:17AM EST, for a total fall in share price of 14.22%. Thus. by market open this morning in New York, many congratulations to those that decided to execute this trade, as you should be sitting very pretty right now after market open this morning on these two “unofficial” trades, no matter the strike prices and expiration dates at which you executed these options trades.
So, for the handful of more risk tolerant that subscribe here, always remember, protect your profits moving forward, and I hope that your profits continue to grow even greater before you divest of these two option plays. For those that did not enter these options trades but want to know of the setups I discussed, you may review these setups here. The two put options strategies I discussed involved shorting Microstrategy (NASDAQ: MSTR) when MSTR was trading at $289.06 per share and shorting Digital Marathon Holdings (NASDAQ: MARA) when MARA was trading at $13.25 a share. MSTR was trading pre-market this morning at $246.55 per share while MARA was trading at $11.09 a share pre-market.
UPDATE: These two option strategies are even more profitable at 10AM EST today, with MARA trading at $10.61, now down 19.92% and MSTR trading at $244.89, now down 15.28% since I discussed these strategies.
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