 Good evening everyone and welcome. My name is Melissa Armo. I thought I would review Amazon here for you today, which was a gaffe up. It was a bullish golden gap It didn't broke out. It's interesting because in the training room this morning I looked at this and I thought Oh, this looks like it's gonna break out. I casually said it and that's exactly what it did and because I was doing my day trains Doing a short. I didn't do this and it was a huge tree And I went back and looked at this and I said, oh my lanta You know, sometimes everything sets up at the same time and and he just can't do everything But this would have been an option trade for me today, not an equity day trade So I get up in the morning every day and I look to day trade stocks. I prefer to short sometimes I go long Options I look at I look at and I don't do them every day. I really just do the good ones It just so happened today. This was a great one And it's set up at this as the same time as my day trades, but I love the fact it happened It was a great Great sign for the calendar year for the bullishness in the stock I'm gonna look at the daily chart and then I'm gonna do a little Option tutorial for people to understand how you can make money doing this and actually the earnings for this are January 26 So I'm gonna do something in this. I just do and I just haven't figured out what yet So it's a it's a wait and see But the stock gapped up if you had rated the gap for the 26 golden gap rating system that I teach in my golden gap class You would have known you could have gone long the stock today dream target was a 15 and look at that It got within 77 cents of the dream target on a day that the market really was not amazingly bullish So this gapped up of its own accord the reason doesn't matter it opened at 831 and it went Now I'm gonna go over what I would have done today Which again, I did not because I day treated and I shorted HES which worked I made money, but this set up the exact time as the short So I did not get this but the funny thing is I taped the room today and go back to listen to it I watched in the morning said oh this looks like it's gonna break out But I didn't know if it would do it exactly today But if I'd watched this interview open it would have known it cuz it gapped up and it did it and the price point of The strike I would have done if I had done it It's too late now, but if I had would have been 800 now. I'm gonna go over Examples and I'm gonna do three examples one is for beginner One is for intermediate and this is for options and one is for advanced and it depends on the amount of money You want to risk this is a lesson for everyone to you know Listen to what I'm saying Understand options if you don't understand them and I and I do options in a very very simple way I'm either buying a calm and selling it or I'm Buying a putt and selling it. That's what I do and it's based on my golden gap 26 point rating system So let's look you could have bought Amazon today and again. I went back to this and I was like, uh You know you could have bought this today at approximately 430 as a cost one contract would have cost you what? 430 dollars This is beginner that it means a hundred shares. I'm just trying to break it down to understand price is 430 one contract and The exit at the target of the chart of the daily chart Was 1410 not the dream target normal target? Okay? Which is you know how I usually trade So that would be a profit of nine point eight on One contract that meant you would have made nine hundred eight dollars You would have made almost a thousand bucks today on this if you had done it So with a four hundred thirty dollar risk, you could have made nine hundred eighty dollars, which is what it's 227% return on investment in one trade in one day now. Why how can you make that much return investment? It's because of the gap. Let's go back closed seven ninety nine oh two Open eight hundred thirty one set the stock gapped up. It was a bullish gap And you could have rated it if you knew my system and that's how you would have known to do the option Okay So that's why it worked. That's why it went almost to the dream target actually Example number two intermediate four point three oh same cost ten contracts would have been what four thousand three hundred dollars, okay? That equates to a thousand shares in the actual equity, but you're doing again the option You have you don't have a stop in an option, but whatever your risk is what your risk This would have been an eight hundred dollar strike that expired on Friday January 13th, but you would have gotten in it today and out of it today You would have got in in the morning into the open and you would have exited it between a Probably run two o'clock two o'clock was going to hit the target So as the price at the target 14 10 again How do you calculate the price and the profits and options you take the cost of the position? Which is 4.3 times the number of contracts minus the sale price equals what 9.8? Again simple arithmetic, but the bottom line is would have been almost a grand $9,800 I look at this and I was like I should have done this today other than the HES I did make money on HES today is very very happy it opened it swushed, but this was huge huge I would have had to do one long and one short at the same time one option one day trade at the same time You know, I'm working on that I'm working on trying to do do all of that at the same time But I will tell you that running a live training room when things set up quickly and amending them out by myself You know, there's there's a lot to look at and so I was able to do it this morning make money I'm able to do it many days But this this was a second trade today, and I and I and before the open I said, oh, this looks like it's gonna break out and And and it did it just set up the same time as HES So sometimes you have to you have to pick which one you're gonna do If we're day trades, I prefer to short, but I will tell you you can make money day trading options I mean this is proof positive What I love about this and the money that could have been made in this today is that it is a confirmation That the stock itself is higher and that the market is bullish this year that stocks like Amazon will live through And and pull the market up which is already doing into the close tonight and and I'm gonna do something in this trust me I don't know what but something so let's just look at this here So with a $4,300 risk you could have made 9,800 bucks again same trade is it success free of more size, but you make more money It's still a 227% return investment in one trade in one day And why again because of the gap again everything I do is because of the gap it the amount of money you risk is dependent on you But the percentage of return on investment has to do with the gap I actually think and I and I don't do this because I love to day trade I love to day trade. I love to short stocks But I know now after doing options using my golden gap 26 point rating system that you could use my system with the rating system and train options and Make enough money in a calendar year to support yourself doing options and nothing else no day trades Of course, he'll make more money if you do both But you could you could absolutely make a living only doing options trades when you get the gap that rates 20 points or more Which this did? Whether you'd go long or short You don't have to be at your desk between 9 30 and 10 a.m. Which is the benefit of options But you got to manage your trades you got to watch them I mean you definitely have to watch them and And and and you got to watch them and you have to look at the time value and let's go back in this case You would have been in at the same day Example three is advanced Advanced meaning more risk larger share size. I've taken up to 50 Contracts or more and some of the trades I did in options in 2016 I'm working up to larger sizes in here into 2017 It's just the start of earnings season and that's that's also why I probably am just focusing on day trading now until until we really get the earnings Now 4.30 was the cost a matter what? 20 contracts, which would have been what $8,600 which is 2,000 shares of the underlying security Exit at the price target again same Target on the daily chart 1410 although it went higher But it hits the target you get out. You don't take every trade only to the dream target Anyways, how do you calculate the profits saved 4.3? 2000 shares 20 contracts minus the sale price 1410 equals what profit of 9.80? Profit on 20 contracts is what you could have made $19,600 if you had 20 contracts of this today You would have needed to put up $2,600 on the live day from the entry into Approximately Vangston, which was around 2 o'clock Eastern time You would have needed to be in that trade and out of that trade But that's the money you would have needed in your account to put up to make this amount But that is a 227% return in investment in one trade and one day Where are you going to make that kind of money? It is very rare that you make that kind of money to any job that you have it is even rare that you make The kind of money in a day trade or an option trade or anything the reason that this works so huge and many of the day trades whether they're options or day trades that I've done in 2016 have worked with such huge huge either risk to reward if it's a day trade Return of investment if it's an option is because of the fact that it is based on the quality of the gap I have a 26 point rating system. I rate it if it's 20 points or more I know to do it whether it's long or short and that is what you learn in the class with me The class is this weekend January 14th and 15th if you would like more information you can email me at melissa at the stocks wish comm Options are an extremely profitable way to trade and if you are looking to Build an account to get to the point where you can actively day trade, you know options is one one way to do it It's just one way to do it to get to the point where you've got the money necessary to actively day trade But if you want my honest opinion, I think you should do both because some days you get good options Some days you get good day trades some days you get both some days you get long some days you get shorts They both work depending on the quality of the gap and you never know until you get up in the morning And you see the gap and you rate the gap So for more information email me at melissa at the stocks wish comm have a great day everyone