FW: I'm naked

Let's get this out of the way right now.... Yes... I am wearing pants. But one of our members did send me an email with a question about a trade that they were putting on in TSLA that I thought was worth sharing. "I'm trying to put together a bullish trade on Tesla using options, I was wondering what are the advantages and disadvantages of using spreads? "This is a simple question with a complicated answer... And I love this question since I built my entire trading career by using advanced spread strategies! Here's the long and the short of it... Trading spreads allows you to be much more precise with risk management which I believe is a key part of maximizing profit. For example: Let's say you sold a deep out of the money put spread on Tesla. This is a generally bullish bet that would stand to profit if the stock went up, sideways, or down slightly. By selling the spread versus a naked option you're taking a risk that's limited to the width of the spread... But because it is a deep out of the money spread it leaves you a margin of error if the stock slowly moves lower as time passes. In exchange for limited risk and the ability to potentially tolerate adverse price action, you have less upside than if you just purchased a call option. Purchasing a call spread would be another way to play a bullish move in the stock. By using a spread vs. buying a call outright you can make your position less sensitive to price action, less expensive to purchase, and potentially less risky. Calendar spreads are another interesting way to play price action and take extremely targeted positions with predetermined risk. Bottom line... Spread trading has been the key to my success which is why the question of whether to go "naked" or not is so important. Want to see a deep dive into how I do it? Watch below:

Best Trades, Scott Bauer

© 2020 PROSPER TRADING ACADEMY, LLC | All Rights Reserved IMPORTANT NOTICE: Stock and Stock Options trading involves a substantial degree of risk and may not be suitable for all investors. Past performance is not necessarily indicative of future results. Prosper Trading Academy LLC provides only training and educational information. By visiting the website and accessing our content, you are agreeing to the terms and conditions. The testimonials contained in this communication were not solicited, no compensation was paid, are not necessarily representative of the experience of all students, and Prosper has not verified the accuracy of the statements contained in any testimonial. Trading successfully is all about finding the right picks and balancing risk with reward. It takes skill, experience and determination. Charlie has put in a ton of work to simplify all of that in this guide. It is a quick read and you will learn something. Things are changing in the market, and you don't want to be left behind. If you're not aware of what I'm covering in this quick 5 minute video, you're risking more than you think.The chance to rewatch a presentation that could literally change your life don't come by every often, so do yourself a favor… Turn off any distractions, and check it out Talk soon,Charlie "big things are coming" Moon.harlie "big things are coming" Moon.Position your portfolio for the rising odds of President Trump winning re-election, according to JPMorgan Chase & Co. (JPM), which says the spread between him and challenger Joe Biden is now nearly even.That's largely due to the impact on public opinion of violence around protests, as well as potential bias in polls, said strategist Marko Kolanovic. "Implications could be significant for the performance of factors, sectors, COVID-19 winners/losers, as well as ESG, though certainly a lot can happen in the next ~60 days."Our Take: If anyone thought that this election was going to be a cakewalk for either candidate, you would be sorely mistaken. We have not seen the last plot twist in this saga.Phase 3 Trials Start AstraZeneca (AZN) is starting Phase 3 trials of its experimental coronavirus vaccine in the U.S., becoming the third company to start late-stage trials to prevent COVID-19.Trial centers across the nation are recruiting up to 30K adults aged 18 years or over. AstraZeneca's vaccine, known as AZD1222, was developed in partnership with Oxford University and has the backing of the U.S. government.Rivals Moderna (MRNA) Pfizer (PFE)/BioNTec (BNTX) already have Phase 3 trials under way, also with federal funding.Our Take: Who will come out ahead in this race-to-finish competition for a much-needed treatment/preventative measure for COVID-19? There is a ton of pressure from the administration to be able to claim victory over the virus.Walmart+ the Answer to Prime?Walmart (WMT) is finally going head to head with Amazon (AMZN) via a nationwide membership program, though the retailer says the new service is "really about doubling down with the customers we have and getting more share of wallet and more share of mind."The program, which costs $98 annually, or $12.95 a month, will launch on Sept. 15. Biggest difference: Walmart+ customers will have to spend a minimum of $35 for each online order to avoid fees, while rival Amazon Prime touts free two-day (and some same-day) shipping on every item.Our Take: Recently, Walmart has proven that it has the motivation to take on world-beater Amazon. Look at the ambition with the Microsoft partnership to bid for TikTok. If anyone can get in the ring with Amazon, it is Walmart.The Stock Tracker by Charlie MoonThe markets refusal to go down is leading buyers to keep pushing the all time highs trade.As in buy the top tick and worry about it later. Why not when stocks and stock markets refuse to drop?This is a great risk on environment, but expect the pullback to take place soon. It may only last a day or two but at least we can finally buy something on sale for once.Other Names To Watch: WKHS, NIO, JD, PTON, DOCUThe Options Corner by Mike Shorr & Scott BauerThe VIX continues to have a POSITIVE beta to stocks. This almost never happens. The market is trying to tell you something. Take the hint and don't get caught overexposed to the upside.On the Earnings Front:HRB (AMC)GSX (tomorrow BMO)LE (tomorrow BMO)M (tomorrow BMO),Stocks To Watch:Bullish: ATVI, MTCH, ROST, STNEBearish: AMAT, DAL, OSTK, RTXBest Trades,

Unsubscribe Prosper Trading Academy 211 S. Clark #1266 Chicago, Illinois 60690 United States (800) 764-7131