by Ian Harvey
July 16, 2019
Some hints as to how to work the recommended options trades.....
1. Entry Price - paying above the entry price?
While we don't advocate chasing prices, we also don't want you to miss out on a profitable trade. So as a general rule, feel free to pay above the recommended buy prices - just to ensure that you'll be able to enter the trade, particularly when the stock market is so volatile.
Most trades are published before the market opens and the entry price can vary greatly from the previous day’s closing price – either way, up or down.
However, there needs to be a sensible approach to chasing entry prices.
If prices are higher than you are prepared to pay for, then you should let it go. You have missed it. But there will be many others.
2. Pre-determined Sell Price?
This simply means an automatic, no-questions-asked sell price – particularly for Armchair Trader and Mentorship members. Cut-to-the-Chase members are provided an alternative strategy that they can adopt, but is basically left to the discretion of the individual trader.
For example, we may be recommending buying an option for $2, and once you have executed the trade, you will then set a “pre-determined sell price” at $4.
With the “pre-determined sell price” already in place, you know that when the option price reaches that point it will be automatically sold. This leaves you with a “peace of mind”.
Overall, this move is a safeguard that
works in your favor to maximize your profits.
3. Trading Account Level for Trading Options?
Options Made Easy” only recommends buying and selling call options and put options, a Level 2 brokerage
account meets the trading requirements.
4. Minimum Starting Capital to Trade Options?
Each individual trader has
a different risk profile - so we do not advise on starting capital. Therefore,
individuals with various levels of trading capital can benefit from our
services. However, most online brokerages require a minimum deposit of $500.
Margin accounts typically require a minimum deposit of $2,000 and impose
requirements. Please consult your broker for specific guidelines.
5. Managing Risk Properly?
Trading securities (especially options) carries risk. To limit risk, we provide suggested stop limits for “Armchair Traders” and “Mentorship” members, but for “Cut-to-the-Chase” members, the trader’s discretion should be used (although there are alternative stop limits suggested) and for “Earnings Predictions” members, no stop limits are given.
The decision to strictly follow, loosely
follow or not follow these protective stops is entirely up to the individual
6. Availability of Auto-trading?
“Stock Options Made Easy” does not engage in automated trading, and we prefer you to trade your own account for more control over stops and sells. You may choose to autotrade at your sole discretion, although we do not recommend it. However, you would need to communicate open and closing trades with your broker.
For the privacy and exclusivity of other “Stock Options Made Easy” members, we will not grant your broker (or any other non-member) access to “Stock Options Made Easy” trading site.
How to be part of the Action?
HERE and select your preferred membership(s) OR
....."Earnings Predictions" just click here……