CLSK Options Strategy Lesson (Patreon)

Rem some options make no sense.

Rules are simple

• Buy in the money
• Sell out of the money.
• When VIX is hi - sell
• When VIX is low - buy

My basic yet often ignored rule: always purchase options that are in the money and sell those that are out of the money.

If you're buying out of the money options, chances are I'm the one selling them to you.

However, with CLSK, the options are quite pricey, making it more sensible to buy the stock on margin.  For instance, if you're buying at 2.50, your break-even point is $6 when the stock is only at 4.50. It's more practical to buy on margin, putting down $2.25.

An alternative could be selling a put to finance a call purchase, as per my SL strategy, but this carries high risk.