Here’s me answering a subscriber question that I’m sure others of you are thinking…

Here’s me answering an email from a subscriber who is asking a question that I’m sure others of you are thinking:

Hi Cody,

I know this sounds naive but i need to know what do you mean when you say “I’ll be looking to scale into some more common in all of those today.”

What does common mean – do you mean common stocks or some options contract for these stocks.
Also when you always say that you will be scaling into some of these options and building a position does that mean averaging into the options previously bought. ?
Nik M
Grad Student
Univ of Southern California


Nik, you’ve got it right throughout — by “common” I meant “common stock” and when I say that I’m “scaling” into existing positions, it means that I’m buying more of that position to build it up further.  Sometimes I have to pay up and sometimes I get to scale in more at lower prices, but either way “scaling” means spreading out our buying over time and price.