Weekly Options Newsletter: Edition 71

Jan 23, 2018

Weekly Options Newsletter: Edition 71

Disclaimer: All trades carry inherent risk, especially options. Make sure you fully know and understand how to mitigate risk on options. Use stops and trade the amount of risk you are comfortable losing. If you are unaware of how to do this on your platform, feel free to reach out to me at jerremy@reallifetrading.com and I will help you!

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. If you do place this trade, ensure that you do not allow any option [long or short] to expire/close in the money on the expiration date, unless you are comfortable with that option being potentially exercised.

Update: As of now, we are not in any option trades. All of our previous trades are closed, sold or canceled. Onto some fresh meat! 

Below is the new official trade:

Buy To Open regular February (That's Feb 16th) $43 calls on MU

Current option price bid 2.43 ask 2.45

Limit buy of 2.00


STOP: $1.00


$400 / 1.00 = 400 SHARES

The amount of contracts per above risk: 400 shares = 4 contracts.

Here is an image of the order:


Target to exit all at 4.50

Hourly Chart

Daily Chart

Remember, if you do not trade options OR know you, you can still consider taking a stock trade, based on the above analysis. 

And or, if you want to do another approach, like selling puts or bull put spread or whatever feel free to . This is a guide. As I've said before, I want to help you see and understand which trades to set up, why and where. The HOW is up to you. ;-) 

If this trade doesn't trigger by market close on Friday, we will cancel and look for another one. 

I hope you find this enriching and valuable! If you have any questions, please let me know. Have a wonderful Holiday Season!

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

Your humble CEO of Real Life Trading ~ Jerremy Alexander Newsome