Since it’s a holiday and the market is closed, I want to run back something I covered last year that’s crucially important: How I manage MY risk.
Please note that I am NOT a money manager, and I’m NOT giving you specific advice about how to manage your risk.
This is just how I manage mine, and for me, it’s all about my P/L — my profit and loss statement.
It’s up to each and every one of us to figure out how much we can risk in trades… because you can lose it all.
So don’t be this guy — always respect the risk!
Order Flow:
This is for informational and educational purposes only. These are not official alerts issued by Lance, but rather some interesting orders picked by the team at Lance Ippolito Trading.
When you look at these plays, always take the market maker move into consideration.
You can be right on the direction but still lose money if the stock doesn’t move enough. That’s where the market maker move comes in clutch.
With puts, they’re often downside hedges in case a stock tanks, especially around earnings. The further out of the money they are, the more likely they are to be hedges.
Also be sure and check when the company’s earnings date is because many of the plays we post here are centered around earnings!
If a stock is really expensive, consider a spread to lower the cost.
And finally, always remember the golden rule when it comes to buying calls: Buy dips, sell rips — and don’t chase!
If a stock’s moved a ton already today, maybe wait for a pullback.
There is inherent risk in trading. Trade at your own risk.
The team at Lance Ippolito Trading
