By: Tom Gentile
on May 24th, 2023
Originally published via our newsletter previously. Subscribe for early access!
A New Approach to our Tom Gentile Weekly Newsletter
I am thankful to each and every one of you for being a loyal subscriber to my tools and reader of my weekly newsletter.
My goal is to provide you with Top-Tier education on the world of options trading.
My goal is to help you realize the ‘benefits of options trading’, get you excited with what this venture can bring your way so that you want to always strive to Elevate Your Education in options trading.
When one gets to a point they believe they know all they need to on a subject matter, especially the markets, that is when one is most at risk of suffering setbacks.
That is NOT who I am. I am always trying to learn and test new ideas for the goal of raising my skill set in options trading to earn more money from options trading.
And I will continue to provide you that education and work to continue to inspire all of you to do the same.
Making this Newsletter More Concise
We are going to make this newsletter a more efficient read.
Instead of doing an assessment on all the corners of the market we’ve done in the past. We will focus one per newsletter that we feel is the one to highlight.
We will provide an occasional case study. We will continue to have our From the Desk of a CMT twice a month when we can. 2-3 times a month we will provide our Tools and Observation lessons.
All of this is designed to get straight to the heart of what we feel will best benefit you in your options trading education.
Enjoy the new revision to the newsletter and feel free at anytime to email my support team at firstname.lastname@example.org as to what you would like to see more of, and we will do our best to continue to help elevate your education!
— Tom Gentile
C1P: Chief 1-Percenter
Market Focus – DIA
Yesterday’s price action was a break down.
It was for that day yesterday, but since DIA (which is the ETF that tracks the S&P 500) has not followed through lower, nor does it look like it is going to stay below for a 2–3-day period, yesterday’s price action looks like it can be defined as a false breakdown.
It seems the markets are seeing optimism that congress is going to be able to stave off a default on its debt.
Whether they extend the timeline the money is due, or they raise the debt ceiling is still being ironed out so know there is more to come with this story and situation.
Case Study Follow Up on Raytheon (RTX)
Last week the case study (not recommendation) on Raytheon Technologies Corporation (NYSE: RTX) was as shown below.
This was an example of how one could have bought to open a RTX June 02, 2023, $93 Call Option.
Remember, we teach we are not buying to open a call option to later exercise our rights to call the stock away or buy the stock from the market at that strike price.
We buy to open an option with the intent to sell it to close at a later time at a higher price for profit.
The option pricing on this today, at the time of the writing, is as shown below.
It shows that if one wanted to close the trade it would be able to be sold to close at $4.25.
That means it is currently at a $90.00 profit. On an initial cost of $3.35 this would be a 26.9% ROI – not bad for a week trade. Of course, if one IS in the trade they can decide to close or not.
*** This is not a trade recommendation as it was not one to begin with last week. It is education on what this could have done thus far by using my tools and education on options trading***
This is an example of the potential benefits of options trading that one can pursue by choosing to Elevate Your Education!
— Tom Gentile
C1P: Chief 1-Percenter
Stock and options trading has large potential rewards, but also large potential risk.
You must be aware of the risks and be willing to accept them in order to invest in the stock and options market. Do not trade with money you cannot afford to lose.
This is neither an offer to buy/sell/ or recommend a particular stock or option.
Hypothetical or simulated performance results have certain inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not been actually executed, the results may have under or overcompensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with hindsight.
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