Emotional Investor
08-23

$Rocket Lab USA, Inc.(RKLB)$ so my friends been doing real options trades for four months now on tiger and my return is in the top 1% of all traders on tiger. So what am I doing? 

Well most of my money is still with my old broker, but that's changing fast as I move funds to tiger. I am a big fan of dividend stocks so over half of my portfolio is in stocks that give me a cash flow that I reinvest, the rest is made up of serious growth stocks, and value stocks. Often the value stocks are a counter cyclical Move. For eg I went in strong last year during the "banking crisis"$Citigroup(C)$ Was a big play, it was just insanely cheap.

But let's get back to options. I only buy calls. And I only buy calls in one company, why? Because I understand that company and it's volatility. Obviously it's Rklb. Small cap, not profitable yet. And is invested in space... if you are risk adverse, don't even think about it.

To me though risk is averted by knowledge. So what have I been up to, to be in the top 1% of traders. 

First, I knew there was a huge amount of positive news in the pipeline, and this has been signalled by management... in tiny ways. As an emotional investor I pick up on body language. "Meeting a launch date isn't important", "the potential Market for neutron doesn't cause me sleepless nights" there are so many things that concern Wall Street analysts that don't concern rocket lab. 

The biggest issue is when will Wall Street wake up. Well I don't think it will 10x anytime Soon, mainly because it's not profitable and it's a small cap. I've been buying the stock For a few years now, especially when it went under $4. But I mainly learned how to buy calls because i didnt have enough money, so I had to think. 

Let me explain, and I'll simplify. If I want to buy 100 shares of Rklb @ $5, well at the moment money is tight, $500 is not something I can do every week. But I can spend $100 a week to pick up an option that expires in jan 2026 that gets me those 100 shares. I'm basically putting a deposit down on some land, that I don't have to pay for completely for a year and a bit. But I also know that the land will be worth more in a year and a bit, because there is a mall, a school, roads, and lots more that isn't there atm, but will be when I have to pay the balance.

Maybe I mite not have the money then either to pay the balance, but if I brought 10 options to buy properties rather than one, I can just sell a few of my options to buy the land, and then use that profit to buy some of the land. 

Of course, this is all about risk and reward. You risk less to gain more, but you rely on your thesis being correct. 

I believe in rocket lab, and I have been selling them at $7.20, and excising call options at between $4.50 to $5 so far to buy them back.

I'll do part two on my winning trade strategy tomorrow 

@TigerPicks @Tiger_chat @Daily_Discussion @TigerWire  @TigerPM 

Winning Trades
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Comments

  • koolgal
    08-23
    koolgal
    Congratulations on your winning trade 🎊🎊🎊. Thanks for sharing your valuable strategy on Options Trading 😍😍😍
  • wubbie
    08-23
    wubbie

    RKLB’s potential is exciting, and your confidence in options trading is inspiring

  • wigglyz
    08-23
    wigglyz

    Your method sounds like a masterclass in controlled risk! Looking forward to part two📈

  • Emotional Investor
    09-03
    Emotional Investor
    Thanks frank, im learning, been learning for 54 years so far, made mistakes especially with women, hand on my heart, i love women, but… stocks have always been an asset. I know what i am doing. Not cost just profit. Unfortunately women in my life are just cost. And yet, we make money to be more deserving to a woman, men are stupid
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