Make More Informed Options Trades With Our FREE 7-Point Pre-Trade Checklist: https://www.projectoption.com/free-pretrade-checklist
Every options trader should have certain things they look for, and points of consideration before entering new option positions.
In this video, we’ll discuss seven points we consider before going into new options trades.
By having a pre-trade checklist, you’ll make better, more informed options trading decisions that should help improve your bottom line over time.
Here are the seven items on our options trading checklist that we consider before entering new option positions:
1. Does the new position fit your portfolio?
2. Have you selected a time frame that suits your strategy and stock price outlook?
3. Is there enough liquidity (volume/open interest) in the options that match your strategy’s time frame?
4. Does the current level of implied volatility make sense for your strategy?
5. Are there any upcoming stock/market catalysts that could result in quick losses for your option position?
6. Do you have an exit price or exit catalyst for losing trades?
7. Do you have an exit price or exit catalyst for profitable trades?
By considering each of the seven points on this options trading checklist, you’ll be more prepared than 95% of traders out there.
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