As many try to makeup for the market downturn, remember that pigs get fed and hogs get slaughtered. Our philosophy at optionsdojo is a little bit more. If you are a good math student you may be familiar with the rule of 72. For those of you who are not familiar it is a math formula to figure out how long it will take $1 to become $2 over time. Let’s say you are earning 6% on average, your money doubles every 12 years, however if we can boost you to 8%, your money doubles every 9 years. So a little bit more can make a great impact over time.
Yesterday before close I bought some AMZN calls in hopes for a short term pop, I got that pop and the return was roughly 30%, however had I waited longer I could have gotten 50%. If you are like many you would figured I lost by selling out early, this is not our philosophy. We believe in targets and making a profit. Options can turn back the other way, so we seize opportunity when it’s provided.
As always, consult your advisor before investing of any kind. options are NOT suitable for all investors and people can and do lose money. Optionsdojo offers no warranties or guarantees with our opinions. Invest at your OWN risk.