Daily Chedda Podcast

Texas, California, and New York re closing due to rising Corona cases spells a big down week in the markets this week.  

Day Trading strategies. 

In by 9.30 out by 4.00

Making money investing is less about being right and more about how many thousands of shares you own.

This is the profit breakdown per share to make real money investing in stocks. 

Another market direction bet similar to SQQQ is the QID ultra short ETF.

10,000 contracts controls 1,000,000 shares and $1,000,000 per point.

The Oct 9 puts are way out of the money but you've got until October 2020.

Take a million dollar bet on 10,000 long puts of SQQQ Ultra Short ETF for only $20,000 or $50,000 at the market.

You control 1,000,000 shares of SQQQ for only $20,000 plus commissions.

A one point move by September 18 will pay $1,000,000.

A smaller bet of 1,000 long puts of SQQQ for $2,000 or $5,000 at the market

gives you control of 100,000 shares and $100,000 per point.

These options are way out of the money so the risk is running out of time by September 18.

A safer bet is a long SQQQ Straddle

B 100 Long Sept 18 SQQQ Calls @ 1.55

B 100 Long Sept 18 SQQQ Puts @ 1.50

At SQQQ 4 you'll make $10,000 per point or $40,000

At SQQQ 12 you'll make $10,000 per point or $40,000

Take a million dollar bet on 1000 long puts of SQQQ Ultra Short ETF for only $2000 or $5000 at the market.

You control 1,000,000 shares of SQQQ for only $2000 plus commissions.

A one point move by September 18 will pay $1,000,000.

These options are way out of the money so the risk is running out of time by September 18.

CORRECTION

Computation error.

1000 contracts will only enable control 100,000 shares of SQQQ not 1,000,000 for $2,000.

*Purchasing 10,000 contracts will allow control of 1,000,000 shares and net $1,000,000 per point

at a cost of $20,000 not $2,000. 

A safer bet is a long SQQQ Straddle

B 100 Long Sept 18 SQQQ Calls @ 1.55

B 100 Long Sept 18 SQQQ Puts @ 1.50

At SQQQ 4 you'll make $10,000 per point or $40,000

At SQQQ 12 you'll make $10,000 per point or $40,000

In order to get into the big tech names, you have to grossly overpay. 

Gone are fairly priced $0.25 or $0.50 premiums for TSLA and NFLX replaced by greed filled sellers 

with $80 premiums for options expiring in a week

Insanity rules.

The number one reason investors buy stocks or stock options is to make money now or in the future.

Fractional shares will not bring you close to accomplishing your goal of making money in the markets.

By definition a fraction is less that 1, so fractional shares means that you own 1/1000th, 1/100th, 1/10th, 1/8th, 1/4, or 1/2 of one share of stock.  

You'll never make any real money.

Here's the math - 

A $5 fractional share of AMZN @ $5/2616 = a 1/530 stake. 

At .0019 cent per point even If a AMZN goes to $20,000 you'll be 99 before you make $100.

Buying at the right price is very important. But it is the art of selling your investment that is the most important part of maximizing profit that most investors lack.

Covid-19 and George Floyd protests markets are narrow in market breath.  Big techs are the only stocks that make sense to buy for options investing.