💥 Exit Strategies In Options Trading | Secure Your Profits & Limit Losses

[@RickOrford]

🔥 Join me on Discord: rickorford.com/discord

[@richardthorne2804]

I have been retired for years and I own individual dividend stocks where i sell covered calls strategically further out in time just to double my annual dividend amount it’s a game changer b/c I dont have to worry about selling shares to live my lifestyle. I also have a separate wheel options strategy in my portfolio margin account where i focus on the indexes such as IWM, SPY, RSP, and DIA to eliminate single stock risk. For my wheel strategy, i sell 30 to 45 days out and close at 50% profit and rinse and repeat. I am always fine taking assignment to sell covered calls but since I’m retired I want the cash flow and my experience is i make way more taking them off at that profit level. And repeat.

[@IllumTheMessage]

Sounds like a solid strategy. I would like to know more.

[@RickOrford]

Love it

[@richardthorne2804]

@@IllumTheMessage It's a game changer. I am part of several investor discords. TiffanyTradesOptions is my primary one. We are all premium sellers with larger accounts and have a great community and we meet monthly. Most of us are also long term dividend investors too.

[@timothymcglynn1935]

🎉 awesome 🎉

[@sgimbal]

Let's go Rick!! Excited for this one!!

[@RickOrford]

Let me know what you think!

[@cryptoenthusiast4999]

So glad that you are uploading more often. Love your videos.

[@RickOrford]

Thanks for the kind words!! Any particular topics you’d like me to cover next?

[@kathrynferrell1045]

You are very helpful. I like doing sell to open puts, naked puts, and love the idea of taking profits at 80% premium. I am trying to understand how to protect the position with a buy order - think it is a put - and $5 lower than strike price (or ? amount) - is that correct? Also love Options Samurai. Need to learn how to use - so starting that education now. Thanks for your help understanding basics.

[@RickOrford]

Very kind words, thank you. To protect a cash secured put, you could issue a stop loss order when you sell the put. This will initiate a “buy to close” automatically if the premium moves against you. Not all brokerages support this order, however- so you’ll need to double check. Keep us posted on your progress!

[@kenintexas9]

Need help understanding: where do you find the numerator to calculate 80% (or the 20%). The denominator is the total premium which I have. But where is the premium remaining that will be numerator? Seems I have to go through a BTC process to see the current premium. What am I missing.

[@RickOrford]

Happy to help- however, I’m not sure what you’re trying to calculate??

[@imadulislamchowdhury3124]

What should be the Exit Strategies on an ongoing Short/Long Credit Spreads? How to calculate the profit/loss on credit spreads which still has few more days to expire?

[@RickOrford]

Hi! Calculating P&L is covered between 13:00 and 16:00. DTE doesn’t matter… also, have a look at: Selling Credit Spreads: A Beginner's Guide to Generating Passive Income and Rolling Credit Spreads kzbin.info/www/bejne/eIS0Z6OXbq5-qsk

[@davidleonard4925]

The buying back the option when you can net 80 percent of the premium I think very often is a good trade. However its also important to pay attention to the idea of keeping the trade going until expiration in order to keep 100 percent of the premium instead of 80. The keeping the trade going until expiration may or may not make sense depending on how many days until expiration.

[@RickOrford]

Good advice!

[@abdulhaqq4362]

Part of trading 101 is the 'trailing stop loss".

[@RickOrford]

Agreed, however, few brokerages offer it.

[@adventuresonvancouverislan3875]

Why does every single options video on the internet start off with what options are?

[@RickOrford]

I know- it’s a bit boring. But, some folks land on this video without knowing what options are. I did, however, break the video up into chapters, so it’s super easy to skip ahead.