After-Close Strategies.
Our system generates signals during the trading hours and
as a rule majority of our signals are executed on the same trading day the
signal is issued. At the end of the day we send summary alerts and reflect
any signals changes if they took place during the trading hours.
Some of our subscribers receive evening summary alerts or
may check signal changes after the market closes only due to various reasons
including a full time job. Since system generates 2-4 signals a month with
staying in the position for 5-10 days in average, there is a possibility of
using our options alerts on the next trading day after a signal was issued.
There are several trading strategies to use our options alerts on the next
day. These strategies are mainly focused on opening a position in accordance
with our signal. As a rule there is no problem closing a position, since,
our signals clearly state the exit limit price.
Strategy #1 - More conservative (recommended):
If the system opened a position a trader may set a
limit order for the next trading day to sell options short at the same
open price or even at a higher price if he/she sees that the options are
traded higher.
In this case a trader may miss some of the trades if the market does not
give the same price to open a trade on the next trading day. However,
there could be a situation when a trader will be able to open a position
at a better price and, because of that, the trades should be more
profitable.
Strategy #2 - More aggressive (not
recommended):
If the system opened a position and set a market order
to sell options short at the market open on the next trading day.
This strategy is considered risky, since, there could
be a situation when a trade is opened at a higher then "Suggested Entry
Price" and therefore be less profitable.
Strategy #3 - Advanced (recommended):
With this strategy, before making a decision to open a
trade on the next trading day, a trader analyzes his/her technical
indicators to see if our signal goes along with his/her analysis and
he/she feels comfortable to open a trade.
Those of the traders who follow our signals during the
trading hours have limited time to make a decision whether to follow our
signal or not. At the same time a trader who has to make a decision
after the market closes has plenty of time for additional analysis.
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