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Week 9 - The Champs at The Larks - GDT


JCon

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Pyramiding is a method of increasing margin by using unrealized returns from successful trades. Pyramiding works by surrendering a minimal amount of previously owned shares in order to pay a part of the exercise price. The surrendered funds are used to purchase a larger amount of option shares. These shares are then surrendered back to the company so that the process repeats itself—with more funds added each time the action is completed—until the full option price is paid. You are generally scaling into a winning position, strategically executing trades once you've identified an extended move up or down.

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