In situations where the market does not move in our favor, we can prevent substantial losses by the use of stop losses. A stop loss could be issued in a situation when our signal is in the profit and our system indicate a possibility of move against the currently profitable position. Furthermore, in some situations we may consider that it is safer to set stop-loss in order to protect profit. We will close out a position and take a loss when a trade was initiated in accordance with our signal but the value of the short option increased rather than decreased, reaching our "Suggested Stop-Loss Level".
Note: An alternative way to protect the system from a big loss or to secure already profitable signal is by simply moving the "Suggested Exit" price to the level when the signal will be closed. In some cases, we may use both ways - our system may generate stop-loss and we may move the "Suggested Exit" price - by reducing the traded price range to the minimum when either Stop-Loss or the "Suggested Exit" is hit and the position is closed.
One single winning trade
DISCLAIMER: THIS INFORMATION IS INTENDED FOR EDUCATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE ANY FINANCIAL ADVICE. RISK IS INVOLVED IN ALL STYLES OF MONEY MANAGEMENT. Uncovered options trading involves greater risk than stock trading. You absolutely must make your own decisions before acting on any information obtained from this Website.
The return results represented on the web site are based on the premium received for the selling options short and do not reflect margin. It is recommended to contact your broker about margin requirements on uncovered options trading before using any information on this web site. Use our "Trade Calculator" to recalculate our past performance in relation to the margin requirements, brokerage commissions and other trading related expenses. Past performance is not indicative of future results.
Risk Statement: Naked options trading is very risky,
many people lose money trading and losses can exceed the amount invested.
ETFs Signals: Signals to trade QQQ, SPY, DIA, IWM, XLF.