I mention the "50% trailing stop" whenever a recommended option achieves triple digit returns as a way to lock in gains before they all slip away. Normally I leave the setting of exact stops to the individual trader, because everyone has their own "50% level" based on their own entries. Below is a table with currently active positions that have all reached triple digit returns and should be subject to the trailing stop. Triple Digit Trades ----- A 50% retracement from the "Best Returns" top tick should trigger the taking of profits, from all to some, depending on individual preference. Although there are four options in the table, they represent basically two trades, so taking all of one position off is the equivalent of taking half of the trade off. Also, there is nothing magical about "50%" as it can just as easily be a little less, i.e., 40%, or a little more, i.e., 60%. ----- Finally, I have been tracking an alternative trade management in some of our big winners: Buying and Holding expiration to expiration, rolling over everything into the next expiration. This is where we are seeing some huge returns this year, 2,000% to 3,000% (GLD table below). A small portion of each new position can be dedicated to this trade management methodology, but with caution, as one bad month can result in a 100% wipe out (unless a trailing stop is used along the way). ----- GLD Rollover Table $1,000 turns into $27,665 by pyramiding GLD calls expiration to expiration. Divergences - New Shorter-Term Trading Tool Technical analysis encompasses more than just pattern recognition, but a whole slew of trading tools, some more adaptable to option trading than others. The charts below display Buy/Sell Signals on some of our favorite tradable stocks using divergences between price action and a host of technical indicators. I'll get into the nuts and bolts in a future update, but the based on extensive backtesting over the past few weeks, its time to introduce these signals to our option trading strategies. Note in particular current Sell Signals in GLD and SLV, and a Buy Signal in PLTR. ----- PLTR - With Short-Term Divergence Signals This updated PLTR chart displays a new trade trigger based on Bullish (Blue) and Bearish (Red) divergences. It's worth is obvious from observation. Note fresh Buy as of Tuesday's close. Charts like this are pushing this new trading tool to the front of the line across many stocks/indices. More to follow. ----- SLV - With Short-Term Divergence Trade Signals Notice the Buy Signals coming in right at Fibonacci support (shaded rectangles). Holy Grail? ----- GLD - With Short-Term Divergence Signals ----- QQQ - With Short-Term Divergence Signals Breaking trend channel will trigger QQQ Sell Signal PRO Subscribers: Analysis here. ----- ----- MORE KEY LEVELS Weight of the evidence is beginning to point hard down. All indices are approaching key levels as this is going out an hour before the close. October crash window is still open. Election interference?
