Hi Fellow Traders and Investors,
Looks like there is going to be a very interesting meeting tomorrow night if you want to see how to apply options to the CANSLIM discipline of investing. Here's the full announcement from Ken Chin, leader of Fremont Investor's Business Daily Meetup Group:
"One of our newest members, Laurence, has been using options as part of his investment strategy for the past 12-18 months and is now currently applying what he knows to the CANSLIM discipline of investing. He's calling his presentation, "Options and CANSLIM Investing: A Beginner's Perspective". I'm excited to hear what Laurence has to say because this is an area in which I am unfamiliar and for the first time in December 2014, the Level IV 'Masters' program introduced weekly options as a strategy for controlling a position in a stock prior to earnings. If earnings numbers disappoint and the stock drops, you only lose what you paid for the option since you didn't actually buy shares of the stock. But if a positive earnings report causes the stock to gap up, that purchased option gives you the right - but not the obligation - to purchase shares of that stock for a price prior to the gap up and thus realize the immediate profit without having taken the risk of buying shares before earnings . Of course, built into that profit must be considered the cost of the option. Another strategy is to sell your option to another investor at a higher premium than you paid. While you won't get all the pieces of the options investing puzzle in this introductory presentation, we will certainly expand on the topic at future meetings if interest warrants. The point is to add one more dimension to your investing knowledge. I will be sitting back, listening with much interest, and enjoying a leisurely dinner, something that I am often not able to do since I'm usually the one speaking.
The other half of the meeting will offer a discussion of what's been working for me during the latter part of the most-recent correction and into the new uptrend. (Hint: early entries using trend lines, watching for high-volume pops above the 10 and 50-DMA lines, and then waiting patiently). In this late bull market, an early trend line entry can give you a 3-8% advantage to the customary IBD pivot. You may then be able to sit tight during a 7-8% pullback while others who bought at higher, conventional pivots have to sell."
Unfortunately, I will be unable to attend this meeting. If any of you who do attend and are taking some notes, perhaps you would be willing to share some of Laurence's perspectives with InvestorsHELP.net? If so, please send to "[email protected]" so that we too can learn from Laurence.
Thank you Ken for leading this meetup group and sharing this information with us.
Trader_Joe Gruender Jr.l
InvestorsHELP.net
Looks like there is going to be a very interesting meeting tomorrow night if you want to see how to apply options to the CANSLIM discipline of investing. Here's the full announcement from Ken Chin, leader of Fremont Investor's Business Daily Meetup Group:
"One of our newest members, Laurence, has been using options as part of his investment strategy for the past 12-18 months and is now currently applying what he knows to the CANSLIM discipline of investing. He's calling his presentation, "Options and CANSLIM Investing: A Beginner's Perspective". I'm excited to hear what Laurence has to say because this is an area in which I am unfamiliar and for the first time in December 2014, the Level IV 'Masters' program introduced weekly options as a strategy for controlling a position in a stock prior to earnings. If earnings numbers disappoint and the stock drops, you only lose what you paid for the option since you didn't actually buy shares of the stock. But if a positive earnings report causes the stock to gap up, that purchased option gives you the right - but not the obligation - to purchase shares of that stock for a price prior to the gap up and thus realize the immediate profit without having taken the risk of buying shares before earnings . Of course, built into that profit must be considered the cost of the option. Another strategy is to sell your option to another investor at a higher premium than you paid. While you won't get all the pieces of the options investing puzzle in this introductory presentation, we will certainly expand on the topic at future meetings if interest warrants. The point is to add one more dimension to your investing knowledge. I will be sitting back, listening with much interest, and enjoying a leisurely dinner, something that I am often not able to do since I'm usually the one speaking.
The other half of the meeting will offer a discussion of what's been working for me during the latter part of the most-recent correction and into the new uptrend. (Hint: early entries using trend lines, watching for high-volume pops above the 10 and 50-DMA lines, and then waiting patiently). In this late bull market, an early trend line entry can give you a 3-8% advantage to the customary IBD pivot. You may then be able to sit tight during a 7-8% pullback while others who bought at higher, conventional pivots have to sell."
Unfortunately, I will be unable to attend this meeting. If any of you who do attend and are taking some notes, perhaps you would be willing to share some of Laurence's perspectives with InvestorsHELP.net? If so, please send to "[email protected]" so that we too can learn from Laurence.
Thank you Ken for leading this meetup group and sharing this information with us.
Trader_Joe Gruender Jr.l
InvestorsHELP.net
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