example of timing the trade buy-in can be seen by looking at our latest weekly
trade on Teladoc Health Inc (NYSE:
First.....let us look
at the recommended trade.....
TRADE: Buy TDOC JUN 11 2021 150.000 CALLS at approximately $4.70.
members have asked for the following suggested exit prices.....
Place a pre-determined sell at $9.40.
Include a protective stop loss of $1.90.
The market opened on a high note but quickly turned into a sea of red,
before rebounding about 20 minutes later.
Now this is where it becomes interesting when timing the trade buy-in –
by buying at the start of trade the cost of our trade would have been $4.55 –
if the trader waited a few minutes it is now a case of finding the bottom price
which occurred about 20 minutes later – at a cost of $3.00. Bear-in-mind,
the market could have gone the other way and therefore, timing the trade buy-in
becomes a different scenario.
Now, it becomes a decision as to when to the exit the trade. Again,
there are several factors that will need to be considered – time to expiry, has
the catalyst(s) been met, risk tolerance of the individual trader, expected
market movement, to mention a few reasons.
the catalysts here..... “Teladoc Weekly
Call option Recommendation”
This trade managed to hit a high of $4.85 at 2:00pm – a nice return of
62% in a very short time. This is not the suggested exit price, but, that is
exactly what it is – A SUGGESTION, not obligatory.
But, should you wait for higher returns? This is where you need to have
your strategy in place and your risk tolerance in-control. Many of the trades recommended
by Weekly Options USA far exceed the suggested exit prices, so a difficult decision
needs to be made.