Dear Profit Takeover reader,

During today’s Profit Takeover show, I wanted to share one of my most important tips to maximize your profit

During my tenure working on the floor of the CBOE, I learned countless tips and tricks that traders can use to maximize wins and minimize losses while trading options…

And today I wanted to reveal my three-step exit strategy to lock in profit.

This morning, I shared an example of a win from the Profit Revolution – in SOFI – SoFi Technologies, Inc.


My exit recommendation when buying calls is: exit half of your position at 100% profit, and let the rest ride up…

I want you to be taking dollars as the price of your options increases –

That way you can lock in profit.

Each morning, I like to set exits at levels I expect the price to hit…

This helps me quickly take those wins when I see the price reach my desired targets.

In the Profit Revolution, and in my own trades, after we exit the first half at 100%, we exit half of the remaining (or a quarter of the original) position each time the price moves higher…

Sometimes, if a stock is riding higher and I’ve already taken off most of my dollars, I will use some profits I’ve taken and open an additional call to catch the parabolic move up…

I will just open a much smaller position – maybe 1/4 of my typical position

This will minimize the risk I am taking while giving the option another opportunity to profit on the upside.

So, with this above example, I am talking about calls –

With puts, I use a slightly different exit strategy:

Exit half of your position at 50% profit.

I don’t always expect to make as much profit on puts as calls, so I want to make sure to take off some dollars earlier – at 50% profit.

I still set exits for the remaining positions I hold on puts… I just gauge my expectations and desired targets differently on puts than calls.

Hopefully, these tips will help you manage your exits and take home more profit on your next trades.

Until next time,


Mark Sebastian
Founder, Profit Takeover

VIX LIGHT

Red Traffic LightThe VIX traffic light is my prediction of how volatility will move.

Red means volatility is likely to drop.

Yellow means a strong move is expected.

Green means volatility is likely to increase.

Today, I expect volatility to stabilize or drop.

My VIX light is red.

Volatility is likely to remain stable or fall.

VIX is at 20.33 as I am writing this…

Image from Yahoo Finance


UVIX listed options yesterday and saw 1500 contracts trade which is a lot.

SVIX while showing similar stock volume was not active in the options.

This makes sense as the market kind of fell apart yesterday.

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Monday 4/4: 10:30 am – 11:00 am Profit Takeover

Tuesday 4/5: 10:30 am – 11:00 am Profit Takeover

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Friday 4/8: 9:30 am – 10:00 am Profit Takeover


TODAY’S WATCHLIST

These are today’s top-watched stocks with cheap options:

  1. Apple Inc (NASDAQ:AAPL)

AAPL is starting to look very soft – currently at $172.39, down from around $178 yesterday

Image from wallstreet.io


We might see it break 170.

I would be looking for a way to play the downside here.

  1. iShares Silver Trust (NYSEARCA:SLV)

SLV is starting to perk up again – it’s up to $22.90 at the time I am writing this.

Image from wallstreet.io


We could see another move higher.

  1. Energy Select Sector SPDR Fund (NYSEARCA:XLE)

Despite the oil release, many energy names like XLE are all moving higher today – it’s now at $77.18.

Image from wallstreet.io


This could be another chance to go long.


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