Following a breakdown of Howard's current bullish, bearish and neutral positions, Howard and Tom aim to talk about scaling in his account. So, they look to add to his current underlyings by enhancing those positions.
In Netflix, Howard adds more long delta to his position (a covered call) by selling a naked put.
Tom explains the importance of timing when adding to a position based on the strength or weakness of the underlying and Howard's subsequent directional assumptions.
For example, they don't add to Howard's DocuSign position because the stock is already up on the day.
Then, they turn to position defense in Facebook (FB). Howard rolls up his Put to cut his directional risk.
To round it out, Tom encourages Howard to begin to look at currencies, commodities and baskets of stocks rather than just outright companies.
Tune in next week to find out what he comes to the table with!
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