STRATEGY FOR day trading WEEKLY OPTIONS
When determining your exit strategy, one of the biggest
considerations is your risk tolerance. With our trading alerts, we aim for 100%
profit, but this is just a suggestion. Whether a trader is satisfied with a
quick 30% or prefers to hold out for maximum profit, the choice is an
Once you have sold your position, and exited the trade,
there are some further strategies you can apply if you believe that the price
has the potential to keep moving in the direction of your choice (up for a call
or down for a put). These strategies are based on the price movement at that
One possibility is that the price drops back after you have
sold your option contract. If you have reason to believe that it will rebound
again, it can be a great opportunity to buy the same option again, and make a
second profit, assuming that the price behaves as you expect.
The other situation is that the price continues to move in
the direction of the position you have just sold, and because the catalyst is
still in place, you are fairly sure that it should continue moving that way.
You could then choose to buy another contract with a higher strike price in
anticipation of making another profit from the continued movement, while having
already secured your initial profit. Ian Harvey sometimes enters and exits the
same option several times within a day, and it works well for him.