We used LULU as an example several times during our 6-week crash course in February. Its price has dropped since then — I'd like to update what's happening. First, as I always mentioned, our course is only for educational purposes. We teach methods, strategies and frameworks, not stock recommendations. LULU has been just one of our case studies to illustrate our option strategies, not financial advices. That said, let's talk about where it stands. LULU's financials have looked great over the past few years, and our buy price was based on that track record. However, we do acknowledge there's a lot of uncertainty right now, and apparently that's an "EVENT" for this business. The latest round of selling was driven by the market not buying into the new CEO appointment, the ongoing proxy battle with founder Chip Wilson, and a leadership vacuum until the new CEO officially starts in September. Meanwhile, capital is flooding into AI and storage, etc — for companies with no near-term catalyst, the market simply sells off. That's how it works. What you need to do is make your own judgment: Is this still a good company? Has the fundamental story changed, or is the market just impatient? If you believe the fundamentals are intact, the Rule1 approach is to tranche in — keep reducing your cost basis, and keep selling calls on the shares you've owned, and be patient. In value investing, we don't use stop losses. Our goal is to own the company at the best possible price. But if you believe the fundamentals have deteriorated, then your strategy needs to adjust accordingly. That's your call to make. A few info: 1. Michael Burry added to his LULU position at $135 and $129, etc. LULU now represents 8.2% of his total portfolio. 2. Phil Town's current approach: "The bottom line is we are focused on reducing basis on LULU while we wait for the proxy battle to end this summer and the new CEO to come on board in September. We could see some price volatility between now and the end of the year so be patient as this event plays out."

Just a reminder of who we are and what we do. We are long-term value investors at our core. Our goal is simple: own wonderful companies at great prices — less than 50% of intrinsic value, and of course, the lower the better. As value investors, the most important thing is to understand businesses, understand their moats, evaluate management, and patiently wait — sometimes for a very long time — until Mr. Market offers us a price that gives us a real margin of safety, or be extremely patient waiting for a great business to recover and return to its value. We use options as a tool, not the goal. We're not using them to speculate on price or bet on direction like other traders do. We use them to generate cash flow while we wait and to reduce our cost basis on positions we already own - with strong certainty. That's it. They serve our long-term strategy, not the other way around. Right now, the market is going crazy over AI. Money is pouring into momentum plays. Everyone's posting their 50%, 100%, 200% returns. And if you're sitting here holding value stocks that are flat or down, it's easy to feel like you're doing something wrong. You're not. Value investing and momentum trading are fundamentally different strategies. Different time horizons. Different return expectations. Different levels of effort, time commitments, and different lifestyles. Comparing your value portfolio to someone riding a momentum wave is like comparing a marathon runner's pace at mile 5 to a sprinter's 100-meter dash. They're not playing the same game. And life is a marathon -- the same as investing. Don't FOMO into what's hot, unless you know how to do it skillfully. Don't compare your interim returns to someone else's. That comparison will make you abandon your own strategy at the worst possible time. What truly matters as a value investor, and where you should spend your energy: 1. Understand companies — use 4M analysis. 2. Strictly follow our rules and option tools to tranche in (remember the V-shape strategy?). One tranche at a time. Keep your dry powder for a better price. 3. Be patient. Extremely patient.

Aparently IBKR cash accounts doesn't recognize the hedge on a vertical credit spread, they calculate the margin as if it is a cash covered put. They calculate the margin not on the hedge (the difference between the two puts, bought and sold) but on the full assignment at the lower strike. Gemini suggests that vertical credit spreads are not allowed on cash account on IBKR and only works on margin accounts ... is that true? @Wendy Dai what do you think?

Trading Index Options requires a separate permission, when I enter to request permission, the US Market is not available to select, only available options are Europe and Asia. Do I need to enable another permission first like Leveraged ETFs or something? it is not clear to me because I already have Level 3 and trading other options for the US market.

To everyone who’s new to the options world — I completely understand how confusing, even bit overwhelming, these first 3 weeks can feel. But here’s the truth: everything becomes dramatically clearer after just one real trade — or even one paper trade — gets filled in your brokerage account. Over a year ago, my very first “student” was my best friend from university. I explained the option basics and ROP strategy to her in two hours on a Sunday afternoon. The very next day, she made $200 in 10 minutes (200 USD to her in China mainland is quite a lot). She was thrilled, after that she kept going every day. She continued learning from me, placing trades every week, researching wonderful companies in her spare time, and within a few months, her option income was steadily covering her salary and now much more than that. But the biggest change wasn’t just about the money. Her mindset expanded. Her curiosity expanded. Her world expanded. Over the past year, I’ve taught many students, and 90% of those who truly followed through achieved similar results. Per my observation, the successful ones share the same traits: 1️⃣ They act fast. Once their account and options permissions are ready, they place trades — paper or real. One trade is enough to unlock understanding. Don’t wait six months — by then you’ll forget, overthink, and feel more confused. Momentum matters. 2️⃣ They learn and practice every week. Not extreme intensity — just consistency. Commit a few hours a week for two months. Review the lessons, rewatch recordings, place a few trades weekly, research one company you like to start with. That’s enough to get real traction. Consistency beats intensity. 3️⃣ They engage with the community. They ask questions. They participate. They share their wins. They stay involved in community and chat group. The more engaged you are, the more this becomes part of your identity - as an investor, and the easier it becomes to execute and make money. You don’t change your life first —