Since Blossom can't record options yet, I am just posting these. For anyone that has been reading the Knowledge Transfer Series, This is OPTIONS week, where we crank out the how & when on the 4 primary option types. For those that read KTS #33 / #33A, ON WEDNESDAY....... I placed my BUY to OPEN CALL Option for 1 contract for Tetra Technologies at the $7.00 strike with an expiration of 1/16/2026 with a LIMIT order for $0.40, or, $40 (100 shares, right?) BOUGHT $TTI 1/16/2026 $7.00 CALL $0.40 So, if you go right now and look at the options chain for TTI at the 1/16/2026 expiration, you will see under the Volume traded...1. That's my order that filled. 😄👍 I want to point out a couple of very, very important points about this order from when it was placed to when it executed: (1) Remember, this is the shrewd wolf territory. With options , especially, we ALWAYS place LIMIT orders. AVOID ever chasing an options contract higher. With the penny pricing per share rights, the impact inflates.....but hey! that's why we like options in the first place - but we like the inflation in our favor! (2) I placed this order on Wednesday, right after I posted KTS #33A. Because TTI is in penny stock (<$5) range, there is low liquidity and volumes......especially for a LEAP (expiration date way out in 2026; reference KTS #30). But the order didn't execute until Friday at 3:59 pm, 1 minute before the last trading minute before the weekend! 😂 (Reference KTS #24, Closing TIME). The wolves were trying to bait me into paying more for the option until THEY just gave up! How do I know? Right after I placed the order, the pricing looked like this: Bid: $0.40 Mid: $0.52 Ask: $0.65 So at that moment, my open order to buy this call option contract saw my offer, 40 cents as the Bid, a willing 🐺 seller at 65 cents, which left the Mid price being automatically calculated as the average of the Bid and Ask. Key point: If I ever decide to change my Bid to the Mid price on an open order, it will usually fill the order. In other words, if I changed my order to $0.52 for 1 contract, or $52 (100 shares in a contract, right?), I likely would have it instantly for $52. Instead, I didn't chase the price up....even though right after I placed my order, the Ask price started to shift around wildly. First the 🐺 lowered the Ask to $0.60....probably hoping I would come up 5 cents as well to 47 cents. See? But I didn't move for the next 2 days as the wolf kept creeping the Ask downward.....basically begging me to come up from my original Bid of 40 cents. Eventually, the 🐺 gave in and just sold me the contract for 40 cents, my original Bid....and moved on to his/her weekend, in the last minute of the trading day. The lesson is that it pays to be patient and wait out in that deer stand for days, if necessary. That was 1 contract and I saved $12. But what if I bought 100 contracts (which represents 10,000 shares), that is a difference of $1,200 !?!??! So as you are PAPER TRADING options right now WITHOUT REAL MONEY......play with these Bid/Ask prices to and record the impacts. Please SPEND THE TIME to learn these tricks now BEFORE you put any of your hard earned capital on the line. In the end, because options contracts are so volatile compared to stocks, it's possible that my selected TTI contract here above exchanges hands next week for less than 40 cents. But over TIME, these LEAPs become more interesting for wolves as expiration comes into view. So we sit and wait......which we can afford to do since the returns (orders of magnitude) are so much higher than the same kind of waiting in just being invested in the stock. So for those of you that love buying stocks coming out of a consolidation (balanced accumulation/distribution period), why not open your mind to BUYING CALL Options. It has the ability to positively change your portfolio with absolutely amazing returns. 20 paper trades first please! This is the Way. 😎 🏄♂️ 🌊 🏄♀️
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13 Comments
Rayne
@rayne · 2yr
There is a volume of 3 now. One of those might be mine 😏. I had to blindly tail you. My problem is I am not overly great and analyzing technicals to have a greater hypothesis on a stocks future. I need to read all the KTS’ over again…. You should com You should compile these as a pdf (mini book) 😉 Ps. It seems that there is not many options to trade on TSX / Canadian stocks
Shamim Nalunkuma
@shamim · 1yr
Hello @beskar_capital, yesterday you recommended that I go through the KTS series from 30-36. How do I make the paper trades?
Currency Creatør
@born2roam · 2yr
Thank you for the amazing lesson. Have a great weekend!!
Currency Creatør
@born2roam · 2yr
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