Ok I am going to make my first trade today. Going with the May calls. I do not understand that the May is not an autotrade but the April calls was an autotrade. I guess I do not know what an autotrade is . Who makes that decision? My call screen shows a stop loss in points. I figured 50% lost of my investment as a stop. There is also an option to automatically cash out at what ever profit you would like. Dan did not mention this. Well I have been waiting and watching for months. Time to jump in!
Art – please do not “jump in”. If you are not sure of what you are doing or how to do it… options with your real money is not the way to learn. I, nor Dan, have any idea what trading platform you are using. They are not all the same. You should be able to change the selection of “points” to “percent” or “dollars”.
Have you watched any of Dan’s training videos? That’s what you are paying for.
Art, when making my first trades I called my brokerage. I had them walk me through the trade and answer my questions like you have. They are freindly and want to help. They like you you to trade thay’s how they make money. They also have many tutorials similar to Dan’s. Good Luck.
Dan, The trades you provide always define the risk. I notice how some of the trades, there is an upside target and some don’t. Sometime I can calculate a measured move and sometimes I can’t. Just wondering if you could give some type of estimated profit exit or your expectation to the upside as well. Other than that the detail and explanations are great. Thanks.
Hello Dan ( and I hope you read this as I get the sense others feel similarly)
I’m new to options and find your SMM and OMM very helpful. I enjoy your commentary and look forward to learning each day.
However, I would like to suggest that you produce a video entitled “How to manage a winning option trade”. You have mentioned recently (and you have made improvements in OMM guidance) that you feel that part of your job as the OMM “coach” should be better guidance re entire option trade-not just the entrance price and the 50% down exit strategy. I would agree.
Specifically, in SMM you very clearly state things such as “I would be selling at this level”, or “I would place a tight stop under todays intraday low”. This sort of guidance is painfully lacking in OMM. You yourself referenced the first PBR option trade that hit $7 per contract that you missed -and therefore so did I. More recently, I bought the April VLO calls for $2.50. On 3/25 (yesterday) they went up about 40% which put my options up about 25%. Is this a clear sell? I have no idea. I only know that when the PBR options shot up I missed it because I’m a newbie who was looking for your guidance but didn’t get any. Would a short email saying something like “you might want to trim your position into this strength and consider buying the calls back on the probable pullback after this 40% move.”, or “despite this 40% gain I would maintain any current position’s as VLO is most likely headed higher coming out of this squeeze” be too burdensome? As an option expert I suppose this might seem silly. As a newbie, it seems very helpful.
I know that you said that you are playing the stock and not the option. I understand that VLO is in the beginning of a uptrend coming out of a squeeze and so I should probably hold(which I did). However, as a newbie, a 25% gain in such a short period of time seems really good to me. If it were a stock holding I would’ve sold.
Another “for instance”- you “loosen” some of the limit suggestions on the entry price of some of these options from say $2.40 to 2.50 (a roughly 4% difference) to get a fill but then give no suggestions when the option price increases by 25%. I get the part of selling at a 50% loss because that is perfectly clear. You give little to no guidance on the upside.
I guess I am partially confused. Mostly though, on an option gain, I don’t know when I’m “being a pig”, to quote Cramer.
I really hope that this little note is taken in the way in which it is intended- which is to honestly give you my feedback to OMM. I believe this is why you have the beta portion of this product. I’m just giving honest feedback as a option newbie in the way in which I think the site is lacking and could be improved.
I do want to reiterate my thanks. I do feel like you provide a great service at a fair price.
Scott – Thanks for the very well written post! I think many of us feel the same as you do. Dan has a lot on his plate, but hopefully he can provide a little more exit guidance like you suggested. Nothing worse than having winners turn into a losers, like happened to me with the VZ trade.
Ok may my first option trade. on vlo. I up over 25%. I have no idea how to sell the option. Can you image! I never thought I be this clueless. Buying and selling stock is easy. I listen to the” new buy and sell video”. It help some. I bought to open VLO. So if I want to sell do I sell to close? Here comes the really stupid question. At what price do I sell to close? I bought to open for $3.20. The option I beleive is worth $4.10. Do I sell to close for $4.10 ?
Art – your membership fees include a whole bunch of videos that Dan and Gary spent considerable time putting together. The answer to all of your questions are in those videos. I highly recommend you spend a few days viewing ALL of the videos, take notes, then… view them again!
DAN… LOVE your sense of humor and how you can find the bright side of anything!
This trade looks good and we appreciate your clear explanation and definition of risk!
Is there a price target yet?
Thanks Dan. Good explanation and I like the two alternatives for trading this.
Ok I am going to make my first trade today. Going with the May calls. I do not understand that the May is not an autotrade but the April calls was an autotrade. I guess I do not know what an autotrade is . Who makes that decision? My call screen shows a stop loss in points. I figured 50% lost of my investment as a stop. There is also an option to automatically cash out at what ever profit you would like. Dan did not mention this. Well I have been waiting and watching for months. Time to jump in!
Art – please do not “jump in”. If you are not sure of what you are doing or how to do it… options with your real money is not the way to learn. I, nor Dan, have any idea what trading platform you are using. They are not all the same. You should be able to change the selection of “points” to “percent” or “dollars”.
Have you watched any of Dan’s training videos? That’s what you are paying for.
Art, when making my first trades I called my brokerage. I had them walk me through the trade and answer my questions like you have. They are freindly and want to help. They like you you to trade thay’s how they make money. They also have many tutorials similar to Dan’s. Good Luck.
Dan, The trades you provide always define the risk. I notice how some of the trades, there is an upside target and some don’t. Sometime I can calculate a measured move and sometimes I can’t. Just wondering if you could give some type of estimated profit exit or your expectation to the upside as well. Other than that the detail and explanations are great. Thanks.
Hello Dan ( and I hope you read this as I get the sense others feel similarly)
I’m new to options and find your SMM and OMM very helpful. I enjoy your commentary and look forward to learning each day.
However, I would like to suggest that you produce a video entitled “How to manage a winning option trade”. You have mentioned recently (and you have made improvements in OMM guidance) that you feel that part of your job as the OMM “coach” should be better guidance re entire option trade-not just the entrance price and the 50% down exit strategy. I would agree.
Specifically, in SMM you very clearly state things such as “I would be selling at this level”, or “I would place a tight stop under todays intraday low”. This sort of guidance is painfully lacking in OMM. You yourself referenced the first PBR option trade that hit $7 per contract that you missed -and therefore so did I. More recently, I bought the April VLO calls for $2.50. On 3/25 (yesterday) they went up about 40% which put my options up about 25%. Is this a clear sell? I have no idea. I only know that when the PBR options shot up I missed it because I’m a newbie who was looking for your guidance but didn’t get any. Would a short email saying something like “you might want to trim your position into this strength and consider buying the calls back on the probable pullback after this 40% move.”, or “despite this 40% gain I would maintain any current position’s as VLO is most likely headed higher coming out of this squeeze” be too burdensome? As an option expert I suppose this might seem silly. As a newbie, it seems very helpful.
I know that you said that you are playing the stock and not the option. I understand that VLO is in the beginning of a uptrend coming out of a squeeze and so I should probably hold(which I did). However, as a newbie, a 25% gain in such a short period of time seems really good to me. If it were a stock holding I would’ve sold.
Another “for instance”- you “loosen” some of the limit suggestions on the entry price of some of these options from say $2.40 to 2.50 (a roughly 4% difference) to get a fill but then give no suggestions when the option price increases by 25%. I get the part of selling at a 50% loss because that is perfectly clear. You give little to no guidance on the upside.
I guess I am partially confused. Mostly though, on an option gain, I don’t know when I’m “being a pig”, to quote Cramer.
I really hope that this little note is taken in the way in which it is intended- which is to honestly give you my feedback to OMM. I believe this is why you have the beta portion of this product. I’m just giving honest feedback as a option newbie in the way in which I think the site is lacking and could be improved.
I do want to reiterate my thanks. I do feel like you provide a great service at a fair price.
Scott – Thanks for the very well written post! I think many of us feel the same as you do. Dan has a lot on his plate, but hopefully he can provide a little more exit guidance like you suggested. Nothing worse than having winners turn into a losers, like happened to me with the VZ trade.
Scott,
Couldn’t agree more. We have a winner, now what?
Might seem obvious for some, but for those of us new to this game, its a very good question.
Please explain how you set stops on options
Ok may my first option trade. on vlo. I up over 25%. I have no idea how to sell the option. Can you image! I never thought I be this clueless. Buying and selling stock is easy. I listen to the” new buy and sell video”. It help some. I bought to open VLO. So if I want to sell do I sell to close? Here comes the really stupid question. At what price do I sell to close? I bought to open for $3.20. The option I beleive is worth $4.10. Do I sell to close for $4.10 ?
Art – your membership fees include a whole bunch of videos that Dan and Gary spent considerable time putting together. The answer to all of your questions are in those videos. I highly recommend you spend a few days viewing ALL of the videos, take notes, then… view them again!
yES, BUY TO OPEN then SELL TO CLOSE. bid is the sell price try “limit” 4.10 or higher wharever the option is going for. Rather than “market” 4.10
Art- Don’t be afraid to ask your broker for help when needed. ZFROG has given you great advice.
I bought may 27 calls on VLO. its up 27%. I have an entire month left on time. Do I sell now or wait? That is sell to close?