How to Roll Options Forward Like a Pro
Rolling options contracts forward is a key risk management tactic in options trading. Rolling can help you lock in profits on a successful trade, while reducing downside risk and keeping some further upside potential.To roll options forward, you must have a plan for handling positions before you enter them, and today, I’m going to give you my process in this video:What Does Rolling an Options Contract Forward Mean? Rolling an option means closing a current contract and buying another contract with a higher (for call options) or lower (for put options) strike price on the same stock. The new contract will cost less than the previous one, lowering total money at risk in the trade This is done when the stock (or the options contract) has moved in your favor, and you want to lock in a profit. So essentially, you are swapping for a new, less expensive option. Rolling Options Works Best With Swing Trading Options Swing trades tend to have a longer-term profile, develop more slowly, and usually allow you to work into/out of a bigger position. This is why rolling works best with swing trades. Day trades are very short-term, so the goal is to have close targets, tight stops, and be more aggressive in taking risk off. So it’s more of an “in or out” mentality. Event trading is typically more boom or bust — stocks tend to have huge swings around events, and there is not always a chance to scale back risk post-event You can roll contracts with day and event-based trading — it’s just not easy, and you have to be fast. First Order Of Business – Setting Targets Before entering a trade, I like to have at least 2 targets and a stop range. The first target is relatively achievable. The second target can be more aggressive. I set targets/stops using technical levels or profit percentage levels. Technical levels include: moving averages, key support/resistance, or extension levels from current prices (5%/10%/20% etc.). Profit percentage levels are net gains on the position. For examlpe, if you bought a call for $1 and you were targeting a 50% gain, you would look to sell the call around $1.50 This Is How I Roll Once a stock hits my first target, my main goal is to lock in money and cut risk. This is what I generally do: Close the current contract and buy a higher (if calls) strike contract that is less than the debit I paid for the original position Buy a contract that has another week/month of time to expiration vs. the original. A Rolling Options Case Study With KHC With KHC, my trade went like this: Step 1: Bought Oct $27.50 call for $0.50Step 2: Sold the Oct 27.50 call for $1.75 (locking in $1.25 of profit)Step 3: Bought the October $30 call for 40 cents So even if the roll expired worthless, I would still expire with a profit. And if the roll happened to take off, I’d still have more upside potential. Makes sure you watch the video for the full breakdown! Click to see Dan’s positions as 10/14/2019 at 4:00 p.m. ET
Continue Reading -->What Swing Traders Need to Know Right Now
The market gapped up big on Friday on the expectations of a ‘partial’ trade deal. But what’s coming next? In this video, Sami shares with you: Why Sami doesn’t see follow-through on Friday’s topping tail The importance of news in today’s environment Why YNDX was such an amazing short on Friday The reason we can’t go all-out bullish just yet Why AKCA, APPN, AVYA, and COLD are on Sami’s buy list Why APHA. NET, PBYI, and ZYNE are on the short list This combination of market analysis + trade ideas is the perfect way to start the week, so check it out. And if you missed Earning Engine LIVE over the weekend, just click here.
Continue Reading -->Is Today the Mother of All Fades?
Is Friday’s big move just a big old fade? Jeff Cooper answers this hard question: In this video, you’ll learn: The importance of the 3-day chart Why the 3-day chart is so helpful for determining the trend 2 things that could signal a reversal The importance of anniversaries with 2002 and 2007 Why the market may be at an important inflection point
Continue Reading -->Options In Play – How to Set Daily Goals And Stop Losses
Daily profit goals and stop losses – 2 very important topics every trader needs to be familiar with. In this video, I’m going to talk about the simple method I use to set those goals and how it helps with my day to day money management.
Continue Reading -->My #1 Strategy for Earnings Season
Sami Abusaad is a happy man. Because earnings season is about to kick off, big time. This is Sami’s most profitable time of year, and he’s going to show you his #1 strategy — the Earnings Play. (click here to learn about Sami’s full training program) In this video, Sami shows you: How he finds great long trades before earnings How he finds great short trades too Earnings Plays in AZZ, HELE, and DPZ How he picked up $2,135 in profit of 1 day of trading earnings The specific order type Sami uses His dead simple trade management strategy If you’d like to learn Sami’s full earnings strategy, click here. In the meantime, enjoy this video!
Continue Reading -->Was Sami Wrong?
Big news! Sami might have gotten the market wrong for the first time in 2019! He went to all-out cash before the market reversed hard to the upside on Thursday and Friday. In this week’s swing trade game plan, Sami explains: What could get him long again this week Why he’s still looking for some selling What he’ll do if we reverse Thursday and Friday’s green bars Why ACHN, CARS, EXPR, and others are on the buy list Why CLVS, PACB, and XOG are on the sell list How to get the plays Sami will actually take Monday morning (click here…) This is a great example of considering where you may have gone wrong, and implementing a plan for recovery. It’s okay to be wrong. It’s a sin to stay wrong, fighting a trend that goes against you.
Continue Reading -->Webinar Replay: 9 Reasons to Join Sami Abusaad’s Earnings Engine
Ever wonder how some traders catch big earnings moves you never even saw coming?Does it seem like they are operating at a higher level? They are — and you can too!Try Sami Abusaad’s Earnings Engine LIVE course — his master plan for predicting post-earnings moves like a pro. Watch the webinar replay, then scroll down to learn more about this one-of-a-kind LIVE education program. Join Sami Abusaad for Earnings Engine LIVESaturday, October 12, 20199:00 a.m. to 1:00 p.m. ETSave $100 – Limited Time Offer! 01 Days 05 Hours 22 Minutes 46 Seconds Click to Sign Up Here are 9 reasons to consider joining:9) Sami Has Made Up to $86,800 in a Single Day With This StrategyIn this video, you’ll see how Sami made over $86,000 in a single day trading earnings: Obviously, we can’t promise profits like this to everyone — but it shows you the power of the Earnings Engine method.8) Sami Spent 7 Years Perfecting This Strategy So You Don’t Have ToThat’s thousands of hours spent developing his Earnings Plays before trading them.Why did it take so long?Because he wanted total confirmation that this method works. He may have left hundreds of thousands of dollars on the table — but that’s what it took for Sami to be sure. 7) You’ll Be More Excited About Earnings Season Than You Could Possibly ImagineTrading is hard work, but it can be incredibly exciting… if you’re making money.Armed with Sami’s strategies, you’ll be ready to attack earning season like a pro — with more confidence, and less stress.6) You’ll Be Shocked At How Simple the Process Is (Especially the Trade Management)If you take Earnings Engine, trading earnings will become as easy as following a few super easy steps. Sami has helped countless students become outstanding traders… and now it’s your turn.5) Earning Season Is Right Around the Corner, and You’ll More Opportunities Than you Can Believe. Now is the time to learn. So You Need the Edge NOW!Earning Season presents a huge opportunity for traders — and it kicks off on October 15 when the big banks start reporting. If you want to make money, you need a plan.You’ll learn how to trade in six different scenarios just in time to get in on the action.You can expect to generate about 10 actionable ideas every day during earnings season — Sami himself has sometimes found over 25 in a single day.4) You’ll Learn Exactly How a Stock’s Place in Its Market CycleThe perfect earnings trade does not happen in vacuum.You must understand where a stock is in its life cycle so you can be ready to strike at precisely the right moment.3) You Can Ask Sami All of Your QuestionsThis course is 100% interactive. You’ll learn Sami’s groundbreaking approach to predicting big post-earnings moves LIVE.That means you get all your questions answered.2) You Can Use These Strategies All Year LongIt’s true — most companies do report during the traditional earnings season.But there are companies reporting earnings almost every trading day. So you can actually use these strategies year-round!1) You Save $100 if You Get In Before the Clock runs Down!To reward customers that want to win this earnings season, we are offering a $100 instant rebate if you sign up before the clock counts down. 01 Days 05 Hours 22 Minutes 46 Seconds Click to Sign Up
Continue Reading -->Got Liquidity? Why the F.A.A.N.G. Stocks Look Bad
It’s time for the latest edition of Sami’s F.A.A.N.G. & Friends! Sami takes you through the most popular stocks in the market, including the infamous F.A.A.N.G. names FB, AAPL, AMZN, NFLX, and GOOGL. In this video, Sami shares: Why he thinks the market topped out The hardest part about getting out of the equity markets Which of the F.A.A.N.G. names look good (hint: none of them) The important message in Sami’s t-shirt (seriously!) Why he looks bearish markets more than bullish markets Why BRX, DHT, PZZA, and SGBL looks amazing The reason his buy list is so small Why names like AMD, GILD, and MSFT are on the short list This is a perfect end-to-end summary of what’s happening with the biggest names in the market, from one of the top technicians in the business. So check it out — and see why liquidity is VERY important right now.
Continue Reading -->The Market Topped: Here’s the Good News and the Bad News
Sami believes the market topped out. There’s good news… and there’s bad news. In this video, Sami covers: The bad news, which is that a recession cycle could be starting soon Why today’s gap down was highly bearish Where support lies for SPY Why we will likely restest the June lows Why long-term stock investors may be in trouble Why Bitcoin just turned bearish The short-term trouble in gold and real estate Pretty depressing, huh? Well, watch the video and find out the good news — because there will be opportunities to make money. Especially if you trade earnings — click here to check out Sami’s FREE earnings webinar.
Continue Reading -->How to Scan 1,600 Charts in 10 Minutes
How does a pro trader scan for trades? You’re about to see how Sami Abusaad does it — at warp speed. In this video, Sami shows you: How he uses TC2000 to scan for swing trades and Earnings Plays How he scans through 1,600 charts in 10 minutes Why the good charts are so easy to spot Why he uses big 40″ 4K monitors in his setup The different he runs scans at different times of day A super-simple method for keeping track of the best setups Sami might be the most productive man in the industry. He day trades, swing trades, does Earnings Plays, teaches courses, run a trading room, hosts Mentorships, invents news strategies, and makes free videos like this. So if you’ve ever wondered how he does it all, you’re about to get some answers!
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