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Hi all,
As my previous post about a year ago, my portfolio was up over 800% - $10K to $80K at it's peak.
I shared my strategy, and alot of people had told me that it is not a sustainable strategy. My strategy that I use is typically swing trading options calls/puts 14-31 days to expiry depending on conviction and being correct two out of three times to be profitable.
Some people said to withdraw my money and start over to see if I could do it again. I am currently doing just that. I withdrew half of my money, kept some for myself to spend. (I still have 1400 shares CELH at $47, now up 18.58% at $55.85) \*\* I actually made a post on CELH at 45 not too long ago. I think it will be triple digits this year or at least touch $100.
Anyway I withdrew $5K, and deposited into my Webull Options portfolio in the beginning of January 5th week. So far I am up 162%, you can see the results below.
What I have played and IMO the EASIEST way to trade for me (Also, please note that my trading strategy is different and everybody else's is different as well):
\*This might work for you, and not for others, and vice versa\*
I wanted to be able to hedge my call options by having a put option stock, so incase market decides to turn my bearish stock would fall faster than the stock that I have calls on.
For example the stocks I have traded and the price action I have noticed:
$CVNA - absolute SCAM of a company, scam stock, scam financial reports, scam fundamentals, scam business model. If you do research you will see how suspicious of a company this really is.
CVNA is the only stock I am consistently trading puts on.
This is the price action I have studied and have been trading (some people will say this doesn't work blah blah blah like my other posts). In reality, you're either not completely desensitized of money so you get out of a trade right before the run (happens to alot of people). This is the thing, CVNA MMs push this stock 10 points+ market open every time market is green. Then after the psychological levels (470, 475, 480, 485), they drop the stock another 10 points.
IE: CVNA opens 467 --- they will push the stock to 470 then 475 if market is strong, etc. I will buy puts as volume dries, at these levels. Then after 30 minutes or so, they drop it back down 10 points, if market is red, the swings are massive which is where you can trade 25-30% in a few minutes on a 14 day expiry PUT.
Anyways, you should put CVNA on your WL. I think this company will be a non existent company in 10 years... It was $3 and on brink of bankruptcy just 2-3 years ago. Went from $3 to $500 in 2-3 years,.... think about that. As a used car sales company, does that make sense? When CARMAX and other competitors are not growing as nearly as they are?
It makes sense if you do research on how they are grabbing these numbers.
HINT\*\*\* His dad owns DriveTime, subsidiary of Carvana. His dad plead guilty to fraud in the past. The apple does not fall far from the tree.
Now for the CALLS players and people who think markets can and will only go up:
I play value stocks that have fallen from an overreaction.
META- fell to $600, undervalued compared to MAG7, underperformed all of these, AI play.
This just made sense for me to buy at $600 and swing calls -- went to $650 next day. Remember when there is selling or even buying there is a MAJOR OVERREACTION that happens every time.
Just play the overreaction and let it stabilize.
A pure example of this: NFLX
I am currently only in CELH stock, NFLX calls, and CVNA puts as hedge.
NFLX support is around 80-82. Next support can be $70. If it does go to $70 it would be time to sell everything and go all in.
Probably one of the biggest tips I can give here:
Don't buy if you are not comfortable, or if you do not have high conviction of a direction.
You will be stop lossed, you will be liquidated. MMs know where most people are buying, and selling. They can drop the price to get you out of the trade and bring it right back up. If you do not have the conviction you need for the stock, you WILL absolutely lose, this is why 90% of traders fail anyway.
Always have an exit strategy. People will tell you that you need consistent stop losses and price targets to exit to be profitable, but while I agree to some certain degree, there have been many cases where the stock price barely misses your goal and drops again.
So ask yourself, is volume drying up? How are level 2? Are the algos on your side? Is the stock price hitting VWAP or MA and being brought down? Then once something happens and it goes against what you believe, AKA price goes above VWAP and closes there. Then I will ask myself, if someone gave me $500 on the street would I take it?
The answer is probably yes if you like free money. So just close it out for $500 lol it can really be that simple.
For losses, please do not buy shitty scam stocks. Some of you guys are buying stocks that are obviously going to fail but want a 1000x stock and just burning money or even worse making your investment dead money.
Get out of that trade and start trading in higher valued stocks. Know the macros, know what sectors are hot, etc.
Right now retail is in recession, and retail will make people alot of money when it is their time. TGT, WMT, CMG, etc...
Let me know if you have any questions.
https://preview.redd.it/3asj2c2v0dfg1.jpg?width=1284&format=pjpg&auto=webp&s=d5159d763e44396dca6c34e7fce16924c6f9f9ea
https://preview.redd.it/g5z6pb2v0dfg1.jpg?width=1284&format=pjpg&auto=webp&s=6fb347a34bca06f8652294c3bf31f687d80cb161