Why GW is my mentor

S/O and I took GW's advanced class.

He had a trade in that class that I loved from the start.

I have practiced that trade since 2005.

I urge any of you who have taken the advanced class to pick one of those trades and practice it.

I sold 20 (20 x 100 = 2,000) LNKD Put contracts...I allowed them to expire...The percentage can't be calculated.

Yes LNKD was up and that is why this trade worked.

And IT WAS PRACTICE NOT REAL. It takes a lot of $$ to do this trade but it is what I am building my account for. BTW I have never lost on this trade since 2005.

Here's the trade...HONEST!



11/15/2013 S Sell LNKD - LINKEDIN 2000 $230.00 $14.95 $459,985.05



Edited 2 time(s). Last edit at 11/18/2013 10:35AM by Darcy2.

Darcy,
I took Gary's Advanced Class back in 2005 in VA Beach. I had never done anything with it, having spent my focus on the Basics over the past few years. I actually pulled out the Advanced manual last week and came to work on Friday ready to try one of those techniques. I actually setup the trade on LNKD. I'm guessing it was the same technique you're referring to, one which you can do on expiration Friday. I ended up not doing it when I saw how much $ was needed. Even though it would have been "virtual", I didn't do it. Nice to hear you're having great success with that particular technique. That inspires me to revisit those techniques he taught.

You won't be sorry testing and practicing this trade. When GW first mentioned it in our advanced class I blurted out "Oh my...". He immediately looked at me and said with this huge smile..."You get it." I smiled and said, "I really do."

I have practiced that trade ever since when things are lined correctly for that trade.

This is one of my goals in my trading leg. It will eventually be about the only trade I do outside of printing press.



Edited 1 time(s). Last edit at 11/18/2013 11:10AM by Darcy2.

Wow! 12X/ year. Would be nice to only have to make that few trades per year !

Traildoc,

That's right. If all a person did was 2 of these trades a year I think Hawaii and beyond looks nice. After taking Advance S/O and I went back through 1-5 for our last time. GW asked people to stand who virtualy or real made 25%, 50%, 100% etc. S/O and I were still standing because there is no way to calculate the percentage in this trade. When he asked, "Advanced Class paid off?" We had to say yes.

It is our goal. It is why I mainly work in trading. I do Printing Press with my WLT stock but I still like trading the market. I really hope all who have taken Advanced Class practice trading one of the several methods GW taught.

I haven't mentioned thisuntil now because to tell the truth the outcome is almost unbelievable.

I finally got around to making a profile here....

Could you share the approximate time you sold the puts? ...can I guess a few minutes before the market closed?

Now that there are weekly options, couldn't one do a "Free Money Friday Play" every week?

Steve C: I never sold. I let them expire. That is how this trade works.

Dash: Never thought about that but testing is worth a try.

I'm going to have to practice this one. I get how it works, but the timing of taking on/selling the phantom position is what matters. If the price would have dropped about $1 (to below $230) in the final minutes, you would have acquired 2000 shiny new shares, correct?

This is awesome to think about - I just need a "little bit more" cash to enable this one in real life.

I appreciate you sharing this gem!

Steve C If the price would have dropped about $1 (to below $230) in the final minutes, you would have acquired 2000 shiny new shares, correct?

Yep.

This trade works best with good news surrounding the move up. And because you may have to buy 2000 shares you best have that in your account to do so. I do not trade on margin. Not now not ever!

I wanna goto one of GW's classes but I work overseas and the times never match up when I'm at home. Heard the guy was a legend!

I love the "E" story about the return on selling options, but for the case of Puts, I must differ with Gary. Since your Puts have to be secured by funds in your account, the actual return on selling Puts is the money received from their sale divided by the funds required to be in your account to purchase the shares represented by your Put sale, if the Puts you sold are exercised. For example, if you got $5 per Put contract for a $100 stock, you sold one Put and had to have a 100% percent secured position, your profit percentage would be $500/$10,000 or 5%. Factoring in buying on 50% margin, which I think is required by all brokers before you can get the approval to sell options, your return would still only be 10% ($500/$5,000). By my math, the only way you could have an "E" return would be if your broker allowed you to sell naked Puts with no secured funds requirement to cover the cost of an exercise of your Puts.

Dan...

Yes in order to do this trade you better have the $'s in your account which is why I only practice this trade at the moment. The other trades GW taught in his advanced class for me is too much work. I'd rather do regular puts or calls on 3 trades than one of the naked trades taught.

I do practice this trade every month and it amazing how simple yet profitable this trade is.

JLT248....

If a person has drive, no quit attitude, and can work from a foundation, they WILL BE successful at this. If a person thinks it will be easy and looking for a fly by night-get rich quick scheme, they are in for a big suprise. If you do not have time to practice and hang in there on a daily basis, you might want to wait until you have the time.

Personally, I have recommited myself to studying and re-taking his class (2-5). I am a bit off of my goal of retiring by the time I am 50. I have not traded as well as I am accustomed. I made more money trading this past year as i did on my 9-5, so I am not complaining. I have a goal of retiring by the age of 50. As of Jan. 19, I will be 6 years away. Most of Gary's students have gone through his class several times, spend a tremendous amount of time researching stocks, and studying. After you get it, the time committment is less, but the process is the same. Good luck, and I hope you get a chance to experience the beauty of making money in the stock market.