Sample Trade – March 2nd, 2009

Posted on 02. Mar, 2009 by Founder in Trading Alerts

We are going to be entering the following position for April Expiration:

Sell To Open QQQQ April 20 Puts for $0.24 or better

Considering how far the markets have fallen in the past month, we feel extremely confident that at some point things will turn around. Even with our bullish bias, at this point the premiums for PUT options below the market represent a great risk/reward ratio with plenty of time until expiration. The downside break-even point at $19.76 would require a considerable sell-off even from the current lows. Per the chart below, there is about a 8.56% of this secanrio ever happening, meaning that we are trading with more than 90% odds of success.

Sample Trade

With careful consideration to risk management in the current market, we feel that by adding this position to the current portfolio will help balance an hedge us for any market direction. This type of risk management is exactly what keeps our losses small and our winners large.

Who Goes There?

Posted on 01. Feb, 2006 by Founder in Current Portfolio, Market Commentary, Members Area, Option Videos, Traders Toolbox, Trading Alerts

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