After a few weeks of preparation, Howard places his first few trades today. But before jumping in, Tom reiterates the main objective of Howard's trading account: to reduce cost basis.
This is done by creating covered positions. Tom explains that while this may limit the profit potential, we use these strategies for lower costs as well as a higher probability of making money on the trade (Probability of Profit).
After a quick runthough of Howard's watchlist and his directional assumptions, Tom explains how they will be executing these positions on the tastyworks platform.
Ultimately, Tom and Howard place 15 trades that are bullish, bearish or neutral in nature. Next week, they plan to focus on adjusting these positions as well as give Howard a better understanding of what to monitor now that he has some trades on!
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