Tackle Today: About swimming naked
May 23, 2019
≈ Do you remember the Widow Maker? ≈
Do you remember the Widow Maker from last year? I am talking about the Natural Gas futures contract. When creatures like this emerge from the darkness beneath, some market participants face immediate extinction.
Since January this year, the monster is lying on the bottom of the ocean again. Dormant. When it’s going to wake up again and make widows all over the financial markets is a mystery.
Apparently, traders and fund managers were heavily allocated on Natural Gas, but instead of holding long positions, they were trading Naked Calls. The asset had a +79.10% increase during a short period of time. If this thing happens to you, my friend, goodbye cruel world. You are now an ectoplasm waiting for the phone to ring with a margin call on the other side. Seeeven Daaays…
“You don’t find out who’s been swimming naked until the tide goes out.”, once said the Sage of Omaha. Some +50% return on a Naked Call works like a magnet for greedy people, the problem is that Naked Call = Short Stock.
The good news is that there are ways you can play the selling of call options without being naked. This is the topic of tonight’s Cash Flow Club. We will be covering the Naked Call strategy from the new Tackle Trading Playbook. That is a show you don’t want to miss: the ins and outs dos and don’ts of this strategy will be covered in details by Coach Gino.
Not a Pro member? You can join the party just the same. Sign up for a 15-day trial here.
Chart of the Day
The Widow Maker
#TeamTackle cannot be the greedy uneducated traders cited in the image above. If you are a Pro Member, attend tonight’s Cash Flow Club webinar with Coach Gino Poore. You don’t want to miss it.
If you are not #TeamTackle yet, get instant access here.
Video of the day
What is a Short Call
A Short a Call Option is a position in which a trader/investor Sells or “Sells to Open” a Call Option Contract thereby promising to sell the underlying asset or security at the pre-determined “Strike Price” on or before the pre-determined date “Expiration Date” in exchange for receiving the premium.
Today’s line up
Traders Lounge 11PM EST
Join the coaches in this live lounge, ask questions, discuss ideas or just sit back and listen to veteran traders discuss market conditions.
Cashflow Club 8:30PM EST
Held every Thursday, this show helps you perfect your favorite cashflow strategies.
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
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.
Financial freedom is a journey
The Tackle Today series is brought to you by Tackle Trading.
Sign up now and gain unfettered access to all of the quality content and powerful Scouting Reports that our Pro Members enjoy for 15-days absolutely free with no strings attached and let us show you what your trading has been missing.
# Sign up now for a 15-DAY FREE TRIAL #
Legal Disclaimer
Tackle Trading LLC (“Tackle Trading”) is providing this website and any related materials, including newsletters, blog posts, videos, social media postings and any other communications (collectively, the “Materials”) on an “as-is” basis. This means that although Tackle Trading strives to make the information accurate, thorough and current, neither Tackle Trading nor the author(s) of the Materials or the moderators guarantee or warrant the Materials or accept liability for any damage, loss or expense arising from the use of the Materials, whether based in tort, contract, or otherwise. Tackle Trading is providing the Materials for educational purposes only. We are not providing legal, accounting, or financial advisory services, and this is not a solicitation or recommendation to buy or sell any stocks, options, or other financial instruments or investments. Examples that address specific assets, stocks, options or other financial instrument transactions are for illustrative purposes only and are not intended to represent specific trades or transactions that we have conducted. In fact, for the purpose of illustration, we may use examples that are different from or contrary to transactions we have conducted or positions we hold. Furthermore, this website and any information or training herein are not intended as a solicitation for any future relationship, business or otherwise, between the users and the moderators. No express or implied warranties are being made with respect to these services and products. By using the Materials, each user agrees to indemnify and hold Tackle Trading harmless from all losses, expenses and costs, including reasonable attorneys’ fees, arising out of or resulting from user’s use of the Materials. In no event shall Tackle Trading or the author(s) or moderators be liable for any direct, special, consequential or incidental damages arising out of or related to the Materials. If this limitation on damages is not enforceable in some states, the total amount of Tackle Trading’s liability to the user or others shall not exceed the amount paid by the user for such Materials.
All investing and trading in the securities market involves a high degree of risk. Any decisions to place trades in the financial markets, including trading in stocks, options or other financial instruments, is a personal decision that should only be made after conducting thorough independent research, including a personal risk and financial assessment, and prior consultation with the user’s investment, legal, tax and accounting advisers, to determine whether such trading or investment is appropriate for that user.
