Merlin Maintains Money Minting Madness

Hey there folks.

Well I know it hasn’t been the most exciting for you day to day around here, unlike what you might have expected from an options trading website. However it has been anything but boring for the ol’ Merlin since I have joined these sacred halls to educate the masses on my money printing ways.

In fact just today, just moments ago, I sold the rest of DLPH Jan 18 $60 Calls for .65 from .20 aka 225% gains.

My previous exit on 3/4 of the position was an even juicer 275% gain.

Put that in your ‘doing fifty trades a day’ pipe and smoke it.

merlinwinsagainandagain

I have been doing this a very long time, and after a while one begins to learn that the most money is made by sitting still. “Buy right and sit tight” as the old saying goes. It may make you feel very excited to trade in and out all day over and over, but the truth is that the best opportunities come to those who wait patiently for their “fat pitch”.

When a good trade comes along, I don’t hesitate to jump on it. However I also do not go looking to throw money at something just because I want to trade, or because I have free capital. A good trader or investor almost always has free capital on hand at all times anyway, so the desire to trade just because you have proceeds from a recent sell should be recognized as a flaw and eliminated from your trading habits entirely.

I promise I wont always sound like a grumpy olde man, whilst also bragging about catching close to 3X gain on my last bit of DLPH financial chicanery. But for now this is what you get, so deal with it.

I will try my best to write the third installment of the Options education series I have been doing here, in these sacred halls, sometime today or this weekend. Because JP is all over me in the DMs.

See ya after the bell.

 

-Merin

2 thoughts on “Merlin Maintains Money Minting Madness

  1. Hello.

    Still trying to understand how options work, so apologies in advance for my noob questions.

    When you say you bought these options for “.20” on this trade, how much does that cost to buy?

    Thank you.

    • Hey there johnnywynn,

      If you were to buy 1 contract at .20 the cost would be $20 plus the cost of commissions.

      Each (standard) contract controls 100 shares and the premium paid is .20 per share = 20.00

      Got it?

Leave a Reply