The AMZN trade I didn’t take…

But JC did and made over 100k.

“The delicate balance of mentoring someone is not creating them in your own image, but giving them the opportunity to create themselves.” — Steven Spielberg

Most of the letters you get from me focus on my strategies, my analysis, my life, and focuses that’ve helped me become a better trader. 

This time, it’s coming from the student in me — instead of the teacher.

Let’s back up for a minute. Did you check out any financial news yesterday? Well, the Nasdaq Composite made a new, all-time high and record printing at $9,000 for the first time. This was a large momentum move, lead mostly by Microsoft, Apple, and my personal favorite — Amazon.

I was watching this move yesterday and this is what happened…

I was trading it for myself when I logged into our trading room for John’s lunch time session — conveniently called the “Options Power Hour.” 

Of course, upon reading the price action, his reaction was swift — and he opened a long call position on Amazon with 100 contracts — purchasing them for a whopping $33.45 a piece. 

Me, along with 600 or so other members, watched him as he executed this trade that cost over 300k without thinking twice. 

I’d love to tell you that I also threw on an amazing version of this trade, and made thousands of dollars as well — but the student in me simply watched with awe as Amazon continued to rise. Of course, he didn’t even flinch, and went on to look at Google, Tesla, Microsoft, and whatever else our members wanted to look at… and Amazon slowly edged higher. 

The type of move we live for, as momentum traders.

It was the volume and momentum play — something he’s seen hundreds of thousands of times before. It’s the same type of move I’ve watched him execute (and teach) thousands of times before. But this time… there was more on the line.

John’s EOD Summary on AMZN

I can’t wait till I can take a screenshot like this one…

Now (aside from my awe) there’s something really critical to take from this. 

People don’t just wake up one day, decide to trade, and throw on a 300k AMZN trade that lasts 45 minutes with an audience of people… and walk away with 128k. 

It requires precision — a mastery of price, a sense of intuition, and knowledge of patterns. More than anything (perhaps) a steady hand and probabilistic mindset, along with risk appropriate to account size. It’s the combination of pattern recognition and confidence — one that demonstrates what’s truly possible when you learn how to trade options. 

It’s a process and a formula — one that starts with a mentor.

John had one, and so do I. And ideally, so do you.

“The greatest good you can do for another is not just to share your riches but to reveal to him his own.” — Benjamin Disraeli

It’s from this mentor that I learned how to use the right options strategies, at the right times. It’s also where I learned momentum and feel. For instance, I learned how to read price action, and when to step in at the right moments in time — and when to step out. 

Sometimes I revert back into that student. I just sit back and watch, and I continue to learn from the Master of the Trade. Because, in this profession I’ve chosen, we’re always learning. Always learning, always earning — I call it. Mistakes are made, which turn into ‘character building moments’ as John likes to say. 

But, having mentors (plus an awesome tribe to take you through it all) is how we reach the other side. 

I’m not sure what my goal is — if it’s making 100k during lunch (I’d probably take the rest of the year off!) — or just continuing to grow on my own trading path and continue to inspire. 

But, yesterday, as a student… I learned a lot. And now, I’m passing that along to you. 

My two mentors, JC and my dad — back in the spot I first met John and everyone at Simpler. 

“Show me a successful individual and I’ll show you someone who had real positive influences in his or her life. I don’t care what you do for a living — if you do it well. I’m sure there was someone cheering you on or showing the way. A mentor.” — Denzel Washington