Thursday, December 16, 2021

Options Risk Management and Why We Hate Stop Losses

 
December 16, 2021
 
Ever Heard of Burn Notice Alerts?
Joy of the Trade Head Trader Jeff Zananiri's readers enjoy a minimum of four traders per week… Which quickly add up to more than 200 trading opportunities a year.

With so many chances to play the market, his best students have enjoyed profits like 69% on BA… 113% on JOE… and 126% on FB… all overnight!


So Jeff wants us to join him for the first anniversary of Burn Notice Alerts — the Burniversary!

He'll be diving deep into the portfolio and making other exciting announcements, so be sure to bring a pen and paper for taking notes.
Let Me In
 
How a Stop-Loss Would Have Kept Traders Away From a 838% Rally
The stock market's been a bit of a roller coaster the past three weeks.
 
Between omicron variant fears, low trading volumes and the usual dysfunction in Washington, the headlines have been triggering algorithmic-based sell-offs only for markets to rally right back.
 
That kind of volatility can be a double-edged sword. We need volatility to get the kind of moves that create the oversized returns we've grown accustomed to in my strategies, like the Daily Profits War Room.
 
Increased volatility also ups the chances of a big move to the downside.
 
The fear of downside often has traders running for the cover of common risk management techniques like protective stop losses.
 
But in an age of sophisticated computer trading, those stop loss orders might as well be a target on the back of a trade that the big institutions are more than happy to go hunting for.
 
That's why pro-style options risk management doesn't rely on stop-loss orders.
See for Yourself
 
1 Long, 1 Short Trade as the Market Digests Disappointing Sales Data
Retail sales for November rose 0.3% from the previous month, about two-thirds lower than Wall Street projections of 0.8%.

Retail sales are important because the data makes up two-thirds of the U.S. economy. And this data is one of the things the Federal Reserve took into consideration during its discussion Wednesday.

The Fed is still expected to aggressively taper its bond purchases, leading to a hike in interest rates.

In this stock market recap video, you'll learn why Wednesday's retail data could drive the markets for weeks… and a long and a short trade, both with options and price levels.
Get the Trades Here
 
"This is the best I have ever seen. Answers that I have been seeking for over 30 Years!"

Marvin C.



Call options are attractive to traders and investors because they provide a way to Leverage their capital for greater investment returns. A trader might buy a call option on the stock – instead of buying the stock outright. For example, an out-of-the money call option may only cost a few dollars or even cents compared to the full price of a $100 stock.
 
 
 
 
 
Disclaimer:
The material in this document is for informational purposes based on our proprietary research. It is not an offering, specific recommendation, or a solicitation of an offer to buy or sell any securities mentioned or discussed herein.

The profits and performance shown are not typical, we make no future earnings claims, and you may lose money.
 
Due to the timing of information presented, any investment performance reflected within this document may be adjusted after the publication and distribution of this material. There can be no assurance that the future performance of any specific investment, investment strategy, or product made reference to directly or indirectly in this communication will be profitable, be equal to any corresponding indicated historical performance levels or be suitable for your portfolio.
Any investment results set forth in this document are not net of expenses and execution costs, nor do they account for other relevant trading or investment fees. Please visit wealthpress.com/terms for our full Terms and Conditions.

 
 
                                                           

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