Want to Know Two Key Pieces of Information to be Successful with Options Trading?

If you have been a student / subscriber or both of mine for just a short time or  long time, you likely have heard me outline my Options Trading Process which is three-fold.

1. Spot an Opportunity
2. Create and Acceptable Risk Options Trade and
3. Mange it Effctively

In order to accomplish this process, I have to have two key pieces of information for my options trades.

I need to have a price target for the security I am trading options on and a time target for it (when is it likely to be at my target price).

Why a Price Target and a Time Target?

Options are a fixed time investment. If the security I am trading options on does not move in the direction needed for the option to gain profitability and it does not move in that direction in the allotted time the option can suffer a loss – and that is not the goal.

A price target is key. Folks tell me they have a hard time knowing when to get out of a trade. When it comes to a loss one can set a dollar amount loss or percentage loss stop.

But when it comes to taking a profit, some folks find that just as difficult or to some, even more difficult.

They get a profit and then they start thinking, but what if it goes higher? They take a profit only to see it run that much higher and they wish they had stayed in.

The next time they have a gain they don’t sell at a decent profit, hanging on to it for more because last time they left money on the table, only to see it turn around and end up making less or taking a loss.

My Education to all of You is Have a Trade Plan in Place Ahead of Time for both Profit and Loss.

Price Target: I have discussed loss management in the past, so I won’t report it here, but for a profit, if you have a price target laid out ahead of time and it hits that price target, I look at it as mission accomplished.

Book the gain is my view. If you end up laving profit on the table just note it beats the alternative, having no profits and or a loss.

Book the gain and see how you feel at that time and that is what you want to remember. Use that feeling to condition you to being set in your mind it was good to take that profit, so you go after that good feeling the next time and the next time and so on.

Time Target: Since options are a fixed time investment, meaning they expire, knowing the time target or date you believe the stock should be able to hit its target by, allows you to then choose an options whose expiration is past that time target.

You don’t want to have an option that expires prior to the time you believe it needs to make its target price. You basically aren’t giving your option trade enough time to work.

Here is a trading mantra to consider living by…

I’d rather want what I don’t have than have what I don’t want

You may want a trade to have worked out. Or you may have a trade on that isn’t working out for you and that is causing pain. It may just be best to consider getting out. If it turns around, so be it. At the time having the trade on wasn’t a feel-good situation.

If you let a trade go that ends up finally working or is working for more profit than you took, that is a situation where you want what you don’t have. But I tell you, it beats the feeling of dread having losses you are carrying and hoping works out (having what you don’t want).

Recognize how you feel in each situation and look to duplicate that for each trade. When you take a profit and it feels good keep doing that and when you take a loss, and it could have been a bigger loss if you didn’t execute the good habit of discipline in taking that loss you won’t feel good.

Stick with the proper discipline and if you see the loss could have been bigger be grateful you booked the loss when you did. And take that feeling in to the next situation if it arises so you duplicate those habits that generate a feeling of good in you.

Patterns and Profits

I teach options education, I run multiple videos each week, where I give my overall market view, my sector specific insights and discuss potential stocks and ETF’s and crypto currencies.

I then break down for everyone where I see the security (stock , ETF or crypto) going in price and by when. Those are two very key pieces of info I assess in my options trading that help with my success.

I then educate people on my options analysis and process of deciding what options strategies are available and which one I would consider doing.

I do not offer the options as a recommendation, but as a means to educate you on the power and leverage of options and how you might consider taking on more of my education and alert services to improve your knowledge on how to trade options successfully!

if you want to learn from me my options trading process you can gain insights at my site Patterns and Profits.

Welcome to Patterns & Profits with Tom Gentile – Gulfport Analytics

App: Toms Option Tools

Toms Option Tools scan the markets for bullish and bearish trade opportunities using our proprietary scans and strategy algorithms. TTR Darknet finds bullish entries based on triple stack channel collisions. Money Calendar identifies seasonal patterns with at least 90% accuracy looking back 10 years. Weekly Cash Clock finds short term opportunities that last a week on average. Microcurrency Trader applies Darknet technology and moving averages to cryptocurrencies. Velocity Trader utilizes volume spike and Velocity indicators on custom stock lists. Quantum Scripts scans the markets for momentum acceleration signals and employs Quantum noise filters. Optimal Trader finds directional pre-earnings opportunities that are optimized for entry date, stock movement, and volatility surge. My Trades tracks the profit/loss of your trades, displays stock charts and risk graphs, creates new trades, and edits existing trades. Morning Report provides top 10 option rankings in 6 categories each day.

Disclaimers

Stock and options trading has large potential rewards, but also large potential risk.

You must be aware of the risks and be willing to accept them in order to invest in the stock and options market. Do not trade with money you cannot afford to lose.

This is neither an offer to buy/sell/ or recommend a particular stock or option.

Hypothetical or simulated performance results have certain inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not been actually executed, the results may have under or overcompensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with hindsight.

No representation is being made that any account will or is likely to achieve profits or losses similar to those shown.

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Tom Gentile and TomsTradingRoom, LLC are educational portals, providing content for educational and informational purposes only. Neither Tom Gentile nor TomsTradingRoom, LLC are a broker/dealer. Investors need a broker to trade stocks and options and must meet certain requirements. All securities, futures, and investments data and ideas are offered to self-directed investors. All prices in USD unless noted otherwise.

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