sell

When To Sell An Options Contract

[Music]

all right what's going on guys so today

I'm gonna talk about the best time to

buy or sell an option I guess mainly

we're gonna focus on selling and show

you guys two plays that I pulled off

this week and I want to talk about it

because this is something we got a

question in the chat somebody was

talking to me about it and you know I

think it brought up some good things we

need to discuss as well as I even had

somebody messaged me and they're saying

well you know the course was great the

free three-day course was great and you

guys could check that out too if you

have into the description and they were

saying it was good but now they're like

okay I want to learn the next steps like

how do I know when to buy when to sell

and really what my response to them was

is that that's not really how options

trading works yes that's part of it and

timing is very very crucial but it's not

only just okay this is the step or this

is the indicator I use you guys see

through even the videos I post it's

about understanding the dynamics of how

these operate how the contract works

knowing what you're buying and there's a

lot of things that come into it there's

no such thing as a real indicator but

there are stuff you could look at just

like that looking at the change clothes

and even what I'm gonna tell you guys

today there's certain scenarios and

factors you need to know how to respond

to certain situations and that's what

gets created by this stuff we look at it

kind of lets you know this is a better

time to sell versus the best but there's

no such thing as looking at an indicator

and really the big thing that's gonna

happen for you guys is spending time

understanding how these contracts work

and understanding the dynamic of what it

is so then you know when you know it's

not this tells me it's a good time but

you're gonna have data and evidence

supporting it so that being said I want

to talk about it I'm gonna show place on

Google I've to here you know and this is

from August 30th till today September

5th I have multiple plays and it's crazy

because I want to show you guys what I

did with my strategy selling them and

you could even see I guess the good and

bad that I did because I netted it over

here $2,100 a profit but after doing

math like at the real top end I probably

could have made about five or six grands

so I did leave money on the table but

I'm always cool with that again you know

you walk away with 2,000 bucks off of I

think my total investment was 560 bucks

to walk away with two grand you know not

bad but you do want to maximize your

efforts and get into you know selling at

the right time he's gonna get important

for you you know I'll leave money on the

table but I guess you know the rebuttal

that that's crucial and options how much

you're making because you're not always

gonna get wins so if you you know I take

a lot of losses and the thing is though

one or two winners can make up for that

so if you are able to secure good wins

you know you could just hit three trades

like this if I netted $5,000 that would

give me a lot more wiggle room than the

two thousand so I'm gonna take that into

consideration but I'm gonna look at that

play and then also I played a

booking.com or a Priceline and you know

that one was a quick you know six

hundred dollar profit and I want to

explain you know why I want to bring

this one up is just looking at the

contract looking at both the expiration

of these and then looking at these

contracts themselves to see when you

know why I sold at those given times and

I showed that with that Google last week

if you guys remember I tell you the

calls but now let's look at the first

these are the 11 80s I bought these ones

and now these ones I bought for 59 cents

and I sold for 208 dollars you know and

that sucks because you look at him now

they were trading for $1,200 $1,400

earlier today now they're at 400 so I

left a lot of money on the table but why

I had other exposure to stuff and you

know for me the fact I said hey I could

sell it at what 205 I think I sold him

more on the low end but for me you know

really what I could said I said hey you

know if I could get it around 200 bucks

I'll take that considering it was 60

cents you know a few days earlier when I

bought it

and now it's already went up four or

five hundred percent for me coming in to

Tuesday said you know it's a short week

Google didn't move that much this

contracts up that one's gonna be further

for me to reach on the money because if

you notice here I have two of these

conch

I have 1184 this week and then 1194 next

week and I had two of those so I said

you know I could take out that money

sell that that pace for one trade and

then the day before I already sold out

of one of these to make this a free

trade which I'll talk about but now let

me answer the main thing with the video

when is the best time to buy or sell a

call when it comes to buying we looked

at the change clothes you want to buy

when the option is cheap when you're not

spending too much obviously you got to

look at the stock itself but if you look

at the eye you know you could put the

odds in your favor just with the option

you know somebody asked in the chat

today they said what about what play was

that that they played I'm trying to

think it was down totally blanking on it

but the stock dropped and it's been

holding there for the last two days and

you know they said I bought options

calls on this

I said regardless of what I don't I

don't know much about the stock I'm not

looking at it right now but the fact

that the stock has been down you know

ten percent in a few days and then held

that low for two three days that's gonna

be a good buy on the calls because the

price has diminished you know the time

premium the volatility it's really gone

down now as far as selling it's the

opposite and you know that's the best

part you want to sell into the strength

of it so let's look at now this Google

the other Google I play and what I'm

saying with that is when you wanna

there's two strategies you could see me

employment once you're up four or five

hundred percent if it's a good enough

game take your money and that's one

thing I will tell you these are options

are volatile the same contract I bought

it for $60 sold it for 200 but at the

end of the day that was just $1400 today

and now it's at 400 you know these

contracts and moves greatly in price so

you whenever you see a good sizable

profit it may not last there for a long

time take it you know you could always

buy another one you could buy something

else but you know at the end of the day

quadrupling your money making five times

your money if you could consistently do

that it's not gonna hurt you you know

and that's really if you make a point to

buy options and sell them right when

you're up you know even if you're up a

hundred two hundred percent and you're

making money and just selling them on

green if you always do that you know

it's you could get a pretty good number

up there so that's something I would

look at but now really

the next thing you want to mainly do is

you want to sell into strength and you

know I'm spacing it out I'm buying

multiple contracts and you know this is

something you guys are gonna have to be

careful of because not all of you should

be trading you know this google play I

put 500 dollars down I have money in

different stuffs different hedges you

know my portfolio is balanced to a

certain degree so you got to be careful

with that but if you could get you know

20 cents 40 cents 50 cents contracts

again it all depends on what you're

playing by those and you know really

what I do right away like this one I

only had one of it made sense you know I

already sold that one earlier but I was

holding it looking at how much time I

said I'm up it's already up a lot I

might as well just take it walk away I

still have these ones that I could play

the time factor on so that's what I did

but now when I even bought this 1190 I

bought this for 250 on August 30th and

then sold it the next day for 5:20 and

now we could look at this contract take

a look at where it's at now you know I

bought it here for what 230 is that what

I said about of that or 250 so I still

bought it kinda high but still pretty

low on the day and this is what I'm

saying when do you buy the contract you

know August 31st I'm buying here you

know I bought and it was slightly up but

at the end of the day I'm buying it

still we're a couple days ago it was

trading you know double triple and

that's what happened the next day went

up to five five why would I sell it up

five 20 so I sold it out like what five

twenty slightly high on the candle and

that was great but now looking into it

so what five twenty I think I sold it

and then it ended up you know went up

slightly higher closed down that day it

was a good sell then now the next day

shoots up to 900 bucks and now you know

I was like okay well I left money on the

table but why did I sell that the whole

point was to take my profits I bought

two of these contracts for 500 I sold

now I pretty much got one of the

contracts for free I'm holding one

contract for 260 but I already made 260

back pretty much getting my money back

not fully in profits but I minimize my

risk now I'm playing the same thing for

really 200 bucks and then will happen

today the contract you know

Google dropped I sold one of those

contracts for $2,000 and now you see

where I sold today you know I think I

sold about I think I sold around right

here I want to say and you'll notice

I'll wait till the strength comes if it

drops I'll really just sell out after

that and call it a day but now I sold

that 2,000 it's down at 1500 but what

I'm saying is you want to sell into the

strength of it pretty much the whole

idea here is sell take profits or pay

for your initial investment if you can

you don't always have to and there's

times where I left money on the table

but you really want to just sell into

the strength of that company you want to

sell when it's going in your favor and

that way you're able to maximise the

implied volatility and maximize it if

you're in the money and that's what

happened in this this scenario and you

know I could have waited and sold out

for 2,600 bucks later but at the end of

the day it made a lot more sense take

the profits secure the money now you

know even if I live 500 600 it sucks on

multiple plays that's what happens but

you got to sell it because that is just

it's taking advantage of when the stock

is at its low your option isn't strength

so another example booking I sold today

I had the September 7th 8th 80s I

believe 1880s yeah I sold these at $900

see I sold these uh at night 1888 sold

at 989 today at 1107 and you know you

see where that that is I think it's

that's right here I top ticked it you

know I sold it at one of the highest

prices because understanding this one

had little time the fact was by you know

what 11 o'clock two hours into the

market

I see the stocks hitting a low it's

coming down fast and near that and I

could get 900 bucks for it I know that's

gonna be a better pledge simply because

even though the stocks at the same price

a few hours later I know that time

factor was lower pretty much I'm pretty

sure then 1107 no no no 11:00 yeah yeah

1107 was like right here you know same

price but now I know that's gonna drop

off you know 200 bucks from the contract

I want to sell into strength so the best

time to sell is when the stock is going

in the favor of the option and it starts

hitting those new highs and pretty much

it has a lot of Ivy that's the best

that's the simplest way to do it but

hopefully you see from a visual example

and there's no way to hit it right on

the head but you're gonna hit a range or

either gonna have caught it in that you

know like Google I mean they're gonna

sell it between 2000 and 2500 and it's

either gonna end up worth a couple

hundred bucks by the end of the week or

the next coming days

or it's gonna be in like five thousand

bucks and I left money on the table but

either way it's about selling in these

areas and zones where you're maximizing

your profit and you're still coming out

with a gain and still not selling for

too little but also you know like you

see you know having a strategy selling

all at once but or selling a little bit

at a time scaling out give yourself

exposure so if I'm selling out of

something I still want some exposure

just in case because you see what

happens with these big moves and what it

means for the prices so I'll leave it at

that but hopefully that gives you guys

some insight and hopefully you guys will

learn from it you got any questions as

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guys peace