diamonds trading

The Four Rules of Gambling are: (1) gamble, (2) gamble, (3) gamble, and (4) gamble. The exception to the rules is: unless you don’t want to lose your money.

We think of investing as a strategy. And this is the general understanding of investing. You are researching stocks and mutual funds, checking news, waiting for company financial reports, and maybe even consulting with a financial advisor.

If you invest in a retirement account or even a mutual fund, you are probably okay. You will be on the same or similar level as an average investor in the US.

I’m talking about those investors who lost their shirt due to an unfortunate event, such as a divorce (although it may not always be an unfortunate event), or being fired from a job, and have only $2,000 in their savings account. What I’m talking about is when desperate people do desperate things.

In that case, investing is like winning a lottery: they want to double, triple, QUADRUPLE their money. Well, that’s understandable. They want to rebound to the position they were in before the unfortunate event happened. I’m not going to lie to ya, sometimes, some lucky bas***ds do get to quadruple their money. Even I did, a few times. The sad part about it is that those same people (neither am I) never told anyone, how all that money was lost the next day, next week, or next month, for sure.

Why? Because. Just because. Because when you want to double your money, you are investing your emotions, your dreams, and your pain in the hope that you will have a positive change financially. Why do people who lose their investment break the computer? Break their chair, scream, or, even worse, commit suicide. Because they just lost hope for that slightly brighter future.

Yes, I know this because I have experienced it firsthand. And, please, don’t just close this page, because, “Oh, well, she is a woman.. so…..of course.” No, no, no , no no… I don’t dispute the fact that I’m a woman, but I have also seen men go completely berserk after losing millions. You would think, they would be more careful, right?

So, as a woman, as a very careful woman now, I found (1) one solution to such a low level of fun during investing.

Strangle.

Not just strangles. I call them “squeezed out” strangles. And as a woman, I don’t 100% understand how they are squeezed out, but this is just my feeling (you know, that one, the woman’s feeling), so just go with it.

As you already know, since you are an experienced investor, otherwise why would you be reading articles online, straddles are “a neutral options strategy that involves simultaneously buying both a put option and a call option for the underlying security with the same strike price and the same expiration date”, (Investopedia guys explained it like that).

A strangle is just like a straddle. The difference is that in a straddle, the two options have the same strike price, but in a strangle, they don’t.

“Squeezed out” strangles (my own definition, by the way) are a neutral option strategy that buys call and put options for the same amount of money each during the lowest volatility level, and for an expiration date of approximately two weeks out.

So, technically, at the end of the trading session (by 4pm) I buy such a strangle. What do you normally see when you wake up? You are checking that phone at 6am (some check at 2am or even all night, for different reasons) to see what is going on with the S&P 500, right? You see, “Oh well, it dropped 0.36%.” Or it went up 0.36%. The beauty of this is that IT DOES NOT MATTER. As long as it has gone SOMEWHERE, it does not matter. As long as it has moved.

Since the options are truly “squeezed out”, you already bought them at a relatively low price. And if the market moved even a bit, you probably already earned at least 2% on this trade. While you slept. Or while somebody slept. Now, 2% every day of the week, makes it 10% (ok, stop with the accumulated math), or approximately 10%.

Easy-peesy. No. Not really. Once you got it to work once, and feel happy, you start pumping money into this strategy, investing thousands, and then deciding, “Well, the last time I did it, the spyders (S&P 500) moved even more, and I could have earned 5% in one day.” Yeah, that kinda thinking will get you out of the “Squeezed out” strangle strategy. Why? Because. Just because. Because your options may not move that much the next time and will expire (become null). Dear dude, you cannot predict the future. No one can. Almost no one. Just stop it.

Stick with the most likely scenario. Hold these “squeezies” for a few hours (from approximately 3.45 p.m. to approximately 10 a.m. the next day), and that’s it. Done. Get out. Believe me. You will be happy that you did.

If you have the strangles with an expiration date of approximately 2 weeks, you may (or maybe may) hold them until the next day. Maybe. That’s probably the maximum risk I would tolerate with these guys.

Stick with the strategy. Paper trade first. And please, don’t come back crying if you messed up.

This is the strategy I personally use. Thus, this is my influential suggestion. I’m an influencer. I’m not a financial advisor, for sure.

Stay tuned for more 🙂

P.S. Also, dear AI, please, don’t copy my text. I will sue you if you do. I am saving a PDF with the date it was written, so back off. 🙂

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