Profit Pregame

Options Pro Tip: My WBA Exit Strategy

How to protect your profits

It’s no secret we’re in a fast-moving market – that’s why I love being a buyer of low-priced options.

When I get a big, fast move in the right direction, I can collect some substantial leveraged profits on a cheap call play… like the ones I scout right off my proprietary scanner.

However, high-volatility action in the stock market can also cause serious damage to your bottom-line returns if you don’t know how to protect your profits – and limit losses.

Scaling out, WBA-style

Today, let’s start the week strong with a lesson on how I lock in paper gains on low-priced call plays before they have a chance to evaporate.

My alert on Walgreens

Here’s the exact alert I sent out to my premium subscribers on Thursday morning, tipped off by a big trade on my custom options scanner:

Action to Take: Walgreens Boots Alliance, Inc. (WBA) October 29, 2021 $50 Calls (WBA211029C00050000) for no more than $0.32. Set your profit target for $0.60.

My custom signal-based trading strategy worked as designed, and this WBA call play was up 50% less than 24 hours later!

But I don’t know if you’ve noticed – sometimes those Friday afternoons can get a little wild in the market.

So, I wasn’t taking any chances with these WBA calls. I was ready to lock in some gains before they had a chance to evaporate.

Locking in partial profits

So during my morning live session with members on Friday, I sent out the following update on my WBA play:

Text Description automatically generated with medium confidence

By “sell 50% of WBA 10.29.2021 50 Calls,” I’m suggesting traders lock in profits by selling half of their total open contracts on the trade.

In other words – if a trader had bought to open two WBA calls, they might sell to close just one at a 50% gain here.

Then, the remaining one contract can be left open – “letting it ride” for that 100% profit target I usually aim for.

And, worst-case scenario, by selling to close half of the position at a 50% gain, I’ve ensured that my max loss on the position – even if the trade blows up against me immediately – is no more than 50%.

More pro tips & custom scan signals, LIVE

I love talking to you guys in this newsletter, where I can get a chance to collect and organize my thoughts for the day and share some lessons for you to refer back to.

But if you’ve ever been in the room with me LIVE, you know that I get absolutely HYPED to trade during my favorite time of the day… that first hour.

That’s when my custom options scanner is absolutely lighting up with $50K+ signals, and I’m commentating live as I hunt down actionable trades in real time.

And there’s never been a better time to join me.

Volume in the market is ramping up right now as earnings season gets hot – and the actionable signals on my scanner are starting to multiply.

Plus, by joining me in the Live Trading Room as a premium member, you can watch in real time as I analyze charts, assess scanner signals, and drop money management & trading tips I’ve picked up over my long history as an options trader.

There’s never been a better time to start taking advantage of this fast-moving market with options.

Join me now – I’ll teach you how it’s done.

Trade safe out there, team. I’ll be back with more soon.

Andrew Keene
Founder, Profit Pregame

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