≈ Keep it in your pocket. ≈
We will begin The Options Heuristics Series with The Absolute Truths. An Absolute Truth is something that is true at all times no matter the circumstances.
Before we jump into the various concepts that make Options trading so amazing, there are a few pre-Trading Concepts (we created this terminology ourselves) you must understand. They come before anything else and, unless someone changes the way things work, these Absolute Truths will remain absolute.
Absolute Truth n.1: In order to buy something, someone must sell it to you. In order to sell something, someone must buy it from you.
In Options trading, there will always be a BUYING and a SELLING activity to be performed inside your brokerage platform. It doesn’t matter if you are buying a digital contract sold by an algorithm-driven robot sitting inside someone’s hard drive on the other side of the planet. The counterpart must exist for the operation to succeed. We will get back to this topic when talking about Liquidity, one of the most important concepts in trading.
You can download and print the flashcard HERE.
Chart of the Day
ABSOLUTE TRUTH N.1
Video of the Day
What Is Return on Assets
ROA = Net Income/Average Total Assets. This tells you how effective the company is using their assets to produce earnings.
Today’s Lineup
Coaches Lounge 11am EST
Join the coaches in this live lounge, ask questions, discuss ideas or just sit back and listen to veteran traders discuss market conditions.
The Coaches Show Replay
If you missed last night’s episode where Coach Tim Justice and Coach Gino Poore prepared for the upcoming 3rd quarter earnings season or would like to watch it again, check it out here.
Bear Market Survival Guide MasterMind Group 7:30PM EST
Owners of our premium system The Bear Market Survival Guide are invited to attend. System architect, Tyler Craig, will be showing how to apply the principles taught in the course. You will find the recordings to previous meetings below.
Halftime Report 12:30pm EST
The Halftime Report starts at 12:30 EST and covers what news is driving the market, chart analysis from the movers and shakers of the day and fun in a way that only Matt and Tim can deliver.
Market Recap 4:30pm EST
The Market Recap is designed to give you a quick overview of the day that was. While brief, this report is designed to cover all of the major events that drove the markets that day and help you plan for the trading day ahead.
