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The Complete Option Report
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Ken Trester, Managing Editor
How to Take and Maximize Your Options
Many option buyers lose not because they take the wrong positions, but
because they fail to take profits properly.
Deciding this in advance, and sticking to your decision when the time
comes, removes a lot of emotion from your decision making.
The Complete Option Report
we always give you our target prices when we recommend options to buy in
This takes your original money off the table. Capital preservation is
paramount when you speculate with options.
The trailing stop adjusts when the stock moves in your direction, and
stays the same when the stock moves against you.
But if the stock fell, they would keep the trailing stop the same.
2 Iron Clad Reasons
Taking half of your profits at the target price serves 2 beneficial purposes:
#1 It forces you to take some money off the table, protecting you from a sudden reversal in the stock price.
leaves money on the table for possible future gains. Protecting profits
and preserving capital is critical when you buy options.
There are two ways to cut losses:
#1 Set a stop loss on the underlying stock. If the stock closes below (for a call option) or above (for a put option) its stop loss, close the option position the next day.
the option price. If an option falls in value by 50% after you buy it,
sell it and close your position.
It is a system that takes profits when they are available, and cuts losses when necessary. Most important, it removes emotions from your decision making.
Follow this system and you‘ll have your best shot at real success when you buy options for speculation.
|Legal, Publishing and Trading Information: The Complete Option Report is published by Ultimate Option Strategies Company; 1494 Union Street San Diego, California. Managing Editor: Ken Trester. Senior Editor: Jeff Carter Publisher: Ron Jackson. It is a violation of United States laws to duplicate or reprint this publication for redistribution in any quantity without permission. Copyright ©2009-2010. All rights reserved. We advise all readers that there can be high risk in options trading. You can lose your entire investment. Individual results may vary from those achieved by the newsletter, and no actual investment positions are taken by the newsletter. It cannot be assumed that present or future recommendations will be profitable or equal past performance. The information contained herein has been obtained from sources believed to be reliable but there is no guarantee it is accurate or complete and it should not be relied upon. This publication should only be used by sophisticated investors who are fully aware of the risks in options trading. Additional Legal Notices and Terms of Purchase.|