If you are one of the thousands of people who follow my stock picks which I post on my website TradersChoice.net you have noticed that I have changed the format for which I post my picks.
What I would like to do with this article, just to clear up any confusion, is to make this change as simple and it's profitable for you as possible.
Below is a screenshot of my most recent stock picks. (These can be found on The Money Page). Here is a link: https://traderschoice.net/The-Equity-Lists.html
If you are a trader, or someone who would like to get into stock trading, allow me to let you in on a little secret-You will almost never be able to get in at the absolute best price. Moreover, often times it is simply difficult to pick a direction in which you believe a particular stock is going to move. So as a strategy to counter against taking an initial loss from opening a position, and not being sure of a particular direction, it is very wise/and profitable to open every position with a straddle.
Opening a straddle is very simple.
You simply buy both a call and a put on the same asset (stock), with the same strike price, and the same expiration month.
Once you execute the trade in this matter, you are now taking advantage of finding the true direction of the particular asset with very little risk.
Let's look at a hypothetical trade.
Let's say you were to open a straddle on company XYZ.
Now, at the opening of your position you had expected that company XYZ was going to move higher however, company XYZ turns against you and begins to move lower.
Because you opened this position with a straddle you are now sitting pretty, and can close the call side and ride the put down lower.
Now that you have established the true direction of company XYZ by opening a straddle and closing the opposite side of the trade, you can now add to that position and capitalize even further on the price action in this manner. Very nice!
Gregory Mannarino