Please help Jolen if you trade options:

I am a new subscriber to AGL. My small account do not allow me to trade stocks so I buy Call Options instead. I need some guidance and tips, e.g. ITM/OTM strikes, delta, DTE, etc … Btw, I only take short term AGL signals. Hope there are fellow members trading Call Options and are willing to share.

Thank you.

Good trading, and tell your friends!
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From Gary:

Hi everyone, 

What are your thoughts on trading options VS stocks using the AGL strategy? 

I still don't know the ins and outs of 
options but from what I've gathered it may be worth considering. 

With options we would have a few benefits:
  • More breathing room, our stops would not be triggered quite so easily. If the option did get to the point you felt you needed to discard it you could sell and still not loose 100% of the investment. 
  • Minimized risk. If the stock gaps down or the market crashed you would only loose the value of the option. You could also sell it and get some of your money back which is typically much less then the 5,10,20,30k you may have sunken into an stock. 
  • Buying power - we could make HUGE profits with the same dollar ammount. Obviously, the same would hold true in terms of increased risk. 
Thoughts? Are there benefits to stocks over options
Good trading, and tell your friends!
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I buy calls almost exclusively. I do so as a stock substitute and to gain leverage. I take both the AGL short term and medium term signals. Here are the general rules I use:
 - For delta, I buy calls around 40 and preferable where the strike price is below where it looks like the stock price might go to. When an option's delta raises, it increases in value faster on a good move.
 - I have tried buying 30 days out or so, but that has not worked for me. So I look for 90 days out with good open interest numbers. That lessens the time factor decrease of price even though they are definitely more expensive to buy. 
 - It is a good idea to risk less than you think, because a down move creates losses pretty fast.
 - With AGL picks, if the price moves below swing low, I get out fast.
 - I do not set stop loss orders - funny things can happen during the day. But I do set a GTC sell order with half or all of the buy, because funny things can happen during the day.

That's most of my plan. I would be glad to respond to questions and would love to hear how other options traders are using AGL.
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Thank you for responding!

Your message has been forwarded to Jolen.

Good trading, and tell your friends!
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Hi Bstryd
Thanks for sharing how you go about buying Call options using AGL signals. I have just started using the signals to trade Call options and still exploring the best way to go about it. Hope to share my experience once I am ready.

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This site preaches discipline. It's true. Having been traded the market off and on for thirty years I can attest to a few basic truths for trading.

-Effective money management techniques
-An unbounded willingness to keep an open mind for tweaking your trading strategies

As you know, options are highly volatile. You can have your head handed to you while stock owners can sleep at night content that there is no clock ticking against their investment.

I like deltas of 40-80 so I can reap benefits of short-term moves. Setting stops, I feel, are essential to being a disciplined trader. Not easy to do with options. What the heck. Commissions are cheap these days. If you get stopped out you can always buy back the option. Just watch out for the rules covering pattern day trading.
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Good stuff.  Thank you T-Bone!

Good trading, and tell your friends!
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