WEEKLY OPTIONS STRATEGY FOR ENTERING TRADES
Knowing when to enter a trade is a crucial aspect of weekly
options strategy. Our weekly trading membership service suggests the price at
which we believe it is desirable to enter a specific trade, and this price is
based on the close of the previous day’s trading.
However, the closing price does not always reflect what the
opening price will be, so if the price is higher at opening, a trader must use
their own judgment in deciding whether or not to enter at the higher price. It
is possible that the market will pull back after opening high, so waiting may
sometimes give the opportunity to enter the trade at the suggested price, or
perhaps even lower, but of course this doesn’t always happen.
Another choice is to enter the trade at market price on the
assumption that the price will continue to perform, and that paying a somewhat
higher premium will not significantly impact the profit to be made.
A third choice is to wait and see what happens the following
trading day. The price may have dropped to the desired entry point, allowing
the trader to enter the trade at an opportune moment. If the price is still too
high, it may be wise to wait for the next trade, as weekly options are
especially time sensitive.
Another possibility is to enter at market price just before
the close of trading, and be prepared to watch what happens when the market opens
the following morning.