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Let’s take a look at the VIX as well.
The VIX broke this uptrend line here. It stayed below it. It rallied back up here. Now we’re just slightly over that uptrend line, which means that it may go back up into higher territory. In our discussion on Vega, we learned that when the VIX goes up, the market generally goes down. It means that there is more fear in the market. More people are buying puts in the market.
Let’s go back to our Trade position here, and see how we are doing. It’s still working. We haven’t gotten filled yet. It’s been about 5 minutes now, so what I am going to do is raise this up to 16 cents. We’ll see if we can get out at 16 cents.
We have $305 of profit open on this. We’ll capture that $305 in profit as soon as we get out of this position. We made $40 just today on this position.
Let’s try 17 cents. We don’t mind giving up a little bit of profit. I got filled, and the VIX is going up. We started out at 15 cents. This is a good lesson. This morning, I had no problem getting out at the price that I wanted, which was a penny off the mid-price. Here, we had to go up 2 cents. We got out at 17 cents. We started out at 15, went up to 16, and got filled at 17.
When you have 90% of your profit, you can afford to give up a few pennies. It doesn’t really matter that much. At this point, what I wanted to do was to pare those positions down. You can see that in the April positions, I have gotten my SPY positions off.
I’m not in the April position anymore, and that’s the way I want it. I want out of that 7 day position, because the closer you get to expiration, all kinds of weird things happen. Especially Gamma risk. If the market happened to get to one of our strike prices, then we could have some weird stuff going on. I’m going to take my profit at 90%.
We’re out of the SPY. If we take a look at our portfolio, the only thing that we have left on there is the EEMs. The EEMs are looking pretty good. I’m not too worried about them. It’s not bad. We’re right in here. On this position, because we do build portfolios, we had a lot of different positions on here.
Let me just refresh your memory. We had a SPY position, and that’s gone. We had an IWM, and we took that off this morning. We still have the EEM. We took off the Diamonds this morning, as well. The only position we have left is this one.
This one still shows some profit potential. We can still move down quite a bit, and still be in a profitable position. Our current profit on this is $138, with one contract. Remember, I’m talking about small contracts. These are real, live trading positions. We have only 1 contract. Imagine if we had 10 contracts. Now we’re $1300. If we had 20 contracts, we would be up $2300, just on this one position.
How much money do you want to make? That is the only question. Once you learn how to build your portfolio and manage these positions, it’s only a matter of size.
Now, because the market is falling – we’re down 237 points – when we started out, we were down about 200 points. Now we’re down to almost 240. This could go down a little bit more, and we would be in an even better position. We made about $30 today. We have $136 open, but let’s see where the expiration is.
The expiration is $351. We have a couple of hundred of dollars of profit in this position, that we can take out of it, if we hang in there just a little bit longer. Since I do not like to predict price, and I only want to manage a portfolio based on numbers, I have the upside, I have the downside. It doesn’t matter if the market goes up or down from this point. I’m going to be in a profitable position. I have room to let this ride a little bit, and I may do that, just to grab a little bit more profit out of this position.
We’re going to leave this, for now. This is how you close out profitable positions. If we were in a losing position – if we ever get into a losing position, I’ll do a video on that. This is how you trade with confidence, because it doesn’t matter if the market goes up or down.
What you always want to take a look at is where your current profitable position is. That is this white line here. Your expiration position is this green line. When you hover your mouse over your current position in the live price, you can tell what the difference is, between your current position and the profit potential that you have available, left in this position. There is about $200 left in this position.
We are going to hang in there a little bit more, because we have room to breathe, and this is the last position in our portfolio that we haven’t closed out yet.
That is the end of this video on closing out profitable positions. As you can tell, this is a really good example. We had to go into the market. We tried to get hit at our mid-price first. After 5 minutes, that didn’t work. We raised it a penny, and that didn’t work. We raised it a penny more, just above the market. This was only because the market was moving rather fast, and I think the guys – especially in the SPY, I’ve noticed – it’s way harder to get hit and filled at the mid-price.
That’s it for this one. Hey, guys, trade with confidence.