Closing Trade

There are three ways to close a short option position:

1. Every QQQ and SPY uncovered options signal generated by our system has a "Suggested Exit" price parameter and in the event when now trading at or below this price, we will buy back the option to close out (cover) our short position. The trade exit price is usually equal to the "Suggested Exit" price. In this case the trade exit price is usually the same as the "Suggested Exit" price. Still, there could be situations, especially at the market open, where the SPY options price moves significantly below the "Suggested Exit" price and in this case the actual trade exit price could be substantially lower.
2. Depending on the market condition and results of technical analysis, our system may suggest closing a position by changing a "Suggested Exit" price into an "at the market price". If such change occurred  during the trading hours, we will cover our short options position by buying QQQ or SPY options contracts back. If the "Suggested Exit" price was changed after the market close, we will close our short position at the market open on the next trading day. In both cases an exit trade price is usually equal to the available (traded) market price of the SPY options right after the change in the signal.
3. There is the possibility that our stop-loss price could be hit. If we indicated a "Suggested Stop-Loss" price and SPY options are traded at or above this level, we will cover out our short position.

Important: In most case our trade exit price is based on the confirmation emails received from online brokers who autotrade our signals, and is usually equal to the exit trade price of our autotrading subscribers.