Trade Management: Options
FAQ: Does the trade system trade with stops?
A: The Trade Tables follow two strategies, first trading with no stops, and second, trading with a 50% trailing stop. To maximize potential for the huge winners, we suggest trading smaller, but with no stop. The 50% trailing stop is a more defensive trade management strategy and it will serve to limit losses and protect gains, but on occasion at the cost of a much larger gain. The choice is up to the individual trader, including the option to craft their own stop-management rules.
FAQ: What should I do if I can't buy the option at the price in the trade alert?
A: The price in the alert is simply the price at which the option is trading as the trade is generated. It is the strike and expiration listed in the alert that will be followed in the Trade Table.
FAQ: What happens if you are using a stop, it is hit, you exit the trade and then it starts moving back in the direction of the original signal?
A: Wait for the next signal.
Q1: How does the system work?
We use our trading platform (trend-following) to identify the larger trend and then monitor the smaller counter-trend retracements for reversals back into the direction of the major trend.
Q2: What should I expect as a subscriber?
Alerts as new trades are triggered, both via email and posted on the website under your level of service, either Premium (Intermediate Term) or PRO (Short-Term). All PRO subscriptions include Premium access. Expect interim updates that will discuss market conditions, published based upon market conditions, as well as a Weekend Update on Saturday's going over the past week's trading and looking forward to the next week.
Q3: Do I need a minimum amount of funds in order to trade the system?
The higher your option account capitalization, the easier it will be to take all trades and management drawdowns. Review the public Performance tables for the prices of options that are recommended. If you can enter 5 trades at any one time, even if only one option per trade, your account should be large enough.
Q4: What is the difference between Blue Line Premium Service and Blue Line PRO?
The Blue Line Premium Service uses both Daily and 180 minute price bars to generate intermediate term trades, about 3-5 weeks. The Blue Line PRO Service trades off of hourly price bars and generate trades lasting from 3-5 days. PRO membership automatically includes Premium membership.
Q5: Is there anything else I need to know?
Yes, we are here to help you make money in the stock and index options market. Your success is our success...and vice versa.
Options involve risk and are not suitable for all investors. All investors who deal with options should read and understand the publication "Characteristics and Risks of Standardized Options." A copy of this publication can be obtained by clicking on this link.
Blue Line Trading System, LLC (hereinafter "BLTS") does not promise, guarantee or imply verbally or in writing that anything taught through our newsletter, in any printed material, or displayed on our website will necessarily result in a profit. BLTS is the copyright owner of all text and graphics contained on this website. Copying, publishing or redistributing any material in any way without the written consent of BLTS is strictly prohibited.
The owners, publishers, and agents of BLTS are not liable for any losses or damages, monetary or other that may result from the application of information contained within this website and/or newsletter. Within this website, we publish materials that meet specific criteria representing characteristics associated with described trading strategies. Individual traders must do their own due diligence in analyzing featured options to determine if they represent a suitable opportunity. BLTS. and any of their agents, affiliates, representatives, employees, principals, business associates or affiliates, partners or independent contractors are not responsible for any losses or profits that may result from the application of information contained within this website and/or newsletter. Past performance is not indicative of future results. Option trading involves substantial risk. You can lose money trading options. The past results posted on this site are meant to give you a reasonable idea of what you could have made or lost trading by following the BLTS service but are in no way an exact reflection of what you would have made or lost. Therefore, you should not rely on our past trade results as a perfect replication of what your returns or losses would have been by following our service. There are inherent risks involved in the stock market and these risks should be considered prior to any decision. The representatives of BLTS may or may not hold a position in any stocks listed at the time of publication and reserve the right to buy or sell any security, option, future or derivative product without notification.
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