Penny Stocks Exposed
Don’t you just like how delta neutral sounds? It just sounds so secretive and classy. (Or maybe it’s just me.) But really it sounds like an exclusive club. And in a way it is. Once you learn how to trade delta neutral, you are guaranteed money no matter what market prices do. Yes you read right. I know it sounds like hype. And there is a catch.
It’s not as easy as it sounds. If it was, everyone would trade “delta neutral” and just rake in the money, right? Okay, now it isn’t just as easy as it sounds, but it can be done. However, you need to know that you will be trading stock options to do this.
When you are delta neutral it means that you will make money no matter what happens to the stock price. However, delta is fluid and constantly moving. So while you might be delta neutral at one moment, you can be exposed to market risk the next moment.
Make sense?
Prices don’t hold still. Delta is tied to the price. So delta never holds still either. Which means, what’s the point? Well, we fight time with time. Delta is a moving target. So we add a time element of our own and we come straight at it… we use a protected buy/right over time.
What??
Basically it’s a covered call (repeated over several months) with a long term (cheap) protective put. I’ll explain in greater detail in the next article. Out of time for now.
See me in part 2 and I’ll explain exactly how I do this…
Do you want to learn more about how I do it? I have just recorded a 25 minute CD called “How To Pick Winning Stocks – The Secret Formula”
Request your free copy here: Click here [http://www.mytradinguniversity.com/CD] for your free CD
Timothy Sykes Interview On Wallstrip – EXPOSED! SCAM!
