At the time a trade signal is issued, we also state a "Suggested Entry" price.
The term "Suggested Entry" price can refer to an exact trade entry price (i.e., to a limit order), or it can state an "at the market price" (i.e., specify a market order).
When option contacts are traded at or above the "Suggested Entry" price stated in our signal, we hypothetically sell short the particular option contracts. When such vent concurs we issue a confirmation email alert where we indicate that short options position was initiated.
If the "Suggested Entry" price states "at the market", we will sell the option contracts after the signal is generated:
As was mentioned above "Suggested Entry" price is set as a limit order and
Please bear in mind that in each signal we state "Execute Period" were we identify the date and time until which signal is active. If a position was not initiated (a trade was not opened) in accordance to the "Suggested Entry" price until time stated in the "Execute Period" then this signal is cancelled.
In opposite to the "Suggested Exit" and "Suggested Stop-Loss" prices, once a new signal is generated and a "Suggested Entry" price is set, we do not change it under any circumstances as it would require adjusting "Suggested Exit" price and other signal's parameters which would be considered as totally new trading signal. Therefore, in case when a trade is still not initiated in accordance with a previously issued signal and when based on the new market analysis results we consider to change "Suggested Entry" price, we cancel not initiated signal and we issue a new signal with new "Suggested Entry" price. In such event we notify all our subscribers by e-mail and post the new "Signal" on our web-site members' area as well.
Question: Can I use your signals to trade options with expiration dates that differ from the one you suggest?
Yes, you may wish to trade options with different expiry dates. If you select a later expiry date, you will reduce your trading risk and lower margin requirements, but potentially also lower your return. Conversely, if you decide to trade an option that has an earlier expiration date than the one we stated, your trading risk will increase, but your potential profits might be higher, yet margin requirements will be higher as well. If you choose a different expiry date, you will have to adjust the "Suggested Entry" price. Unfortunately, there is no exact formula for calculating a new entry price because options with different expiry dates tend to have different implied volatilities.
"Entry price" is an actual price at which our trade was opened. This price is taken from the email-confirmations received from the brokers who autotrade our signals and this is the price at which orders to open a position (Sell to Open) of our subscribers who autotrade our signals were filled.
Naked options trading is very risky - many people lose money trading them. It is recommended contacting your broker or investment professional to find out about trading risk and margin requirements before getting involved into trading uncovered options.