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Simpleoptions Checklist PDF

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128 views

Simpleoptions Checklist PDF

Uploaded by

sy
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Checklist

The Safe Trade


Checklist For
Options Traders

DISCLAIMER: Stock, forex, futures, and options trading is not appropriate for everyone. There is a
substantial risk of loss associated with trading these markets. Losses can and will occur. No system or
methodology has ever been developed that can guarantee profits or ensure freedom from losses. No
representation or implication is being made that using the information in this special report will generate
profits or ensure freedom from losses. Risks also include, but are not limited to, the potential for changing
political and/or economic conditions that may substantially affect the price and/or liquidity of a market. The
impact of seasonal and geopolitical events is already factored into market prices. Under certain conditions
you may find it impossible to liquidate a position. This can occur, for example, when a market becomes
illiquid. The placement of contingent orders by you, such as “stop-loss” or “stop-limit” orders will not
necessarily limit or prevent losses because market conditions may make it impossible to execute such
orders. In no event should the content of this correspondence be construed as an express or implied
promise or guarantee that you will profit or that losses can or will be limited in any manner whatsoever. Past
results are no indication of future performance. Information contained in this correspondence is intended
for informational purposes only and was obtained from sources believed to be reliable. Information is in no
way guaranteed. No guarantee of any kind is implied or possible where projections of future conditions are
attempted.
Copyright © by Profits Run, Inc.
All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any
means, electronic, or mechanical, including photocopying, recording, or by any information storage and
retrieval system.
Published by:
Profits Run, Inc.
28339 Beck Rd Unit F1
Wixom, MI 48393
http://www.profitsrun.com/

Introduction

Trading options can be risky. But even beginning traders can dramatically reduce the
risk level on any given options trade by examining this pre-trade checklist before placing
an options trade.

Many beginning traders think the key to succeeding in the markets is picking winners at
a good rate or trying to find some “secret system” that will give them an edge. But
experienced traders know the key to succeeding in the markets comes down to
reducing risk.

For that reason, I urge you to study this pre-trade checklist before placing any options
trade.

NOTE: If you’re not sure what any of these terms mean, don’t worry. I’ve also
given you complimentary access to my top-selling training guide – Simple Options
Trading For Beginners. This training guide and video explains everything you
need to know about trading options in plain English.

Here is the checklist, which you may want to print out and keep next to your computer…
The Safe Trade Checklist For Options Traders

#1: Is open interest at 100 or above?

Note: You can find more information on the concept of open interest on page 66 of The
Simple Options Trading For Beginners guide.

#2: Is the bid-ask spread less than 10% of the bid?

Note: If this concept is unfamiliar to you, review the section starting on page 42 of The
Simple Options Trading For Beginners guide.

#3: Are you placing the trade 15 days (or more) before Earning’s
Announcement?

Note: Because prices can jump wildly in the days leading up to earnings
announcements, it’s usually safest to avoid placing a trade 15 trading days prior to a
company’s scheduled earnings announcement. Unless of course you are using a
trading strategy specifically designed to be used with earnings announcements.

For more information on different options trading strategies, review page 41 of The
Simple Options Trading For Beginners guide.

Be sure to watch your email for more tips on how to get started with options trading.

Good trading,
Bill Poulos

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