Weekly Options Newsletter: Edition 1

Oct 04, 2016

Weekly Options Newsletter: Edition 1

The first of its kind..

Hey traders! Well, here it is. The moment you've all been waiting for. I WILL say, the first edition (this article) will be about 4 times longer than the additional future articles. We're keeping it short, sweet and to the point. 

If you DO have any questions about the material below, email me and let me know. My simple disclaimer is: all trades carry inherent risk, especially options! Make sure you fully know and understand how to mitigate risk and do not undertake the same kind of trading I did years and years ago...when I put the balance of the account I was trading in 2-3 options trades, risking the entire amount. Risk is key and if you need help understanding risk, let me know. 

Below is my plan regarding a directional option trade. You by no means have to place this trade and I'm not suggesting any specific advice. This is to help traders learn how to mitigate risk and trade options effectively. 

Option I plan on buying: QQQ - October 21st [regular expiration] 117.5 Put

Price I plan on paying: $1.00 limit buy

Risk: $400.00

Stop: .40

Amount of contracts per above risk: 7

Target 1  $1.60   Target 2 $2.20

Chart. https://www.tradingview.com/x/kvBJ32I1/

If the QQQ is not below 117.50 by Thursday of next week, I plan to exit this trade accordingly. An Update will be coming next week. I hope you take advantage of the weekly options newsletter offer in combination with the trading rooms. This is a trade we will keep track of each day. 

Because this is free, I'll go into a bit more of detail. Some might wonder 'why only once a week?' 'Why only a risk of $400?' Well, of course you can choose your own risk, but if one places 4 trades a month and on average, we lose on 50% and win on 50%, that's a potential gain of approximately $800 a month, on just these 4 trades, if everything goes according to plan. And with this trade alone, 7 contracts of $1.00 limit, that's an investment amount of only $700! I am quite confident many traders can see the possibility, value and enriching detail in this new product! We are very happy to see how it's been received so far and look forward to the future my friends! 

Thanks for reading. Let me know if you have any questions! 

Until next time, Love Life, Live Life and Trade it! 

Jerremy Alexander Newsome.