Suggested Exit

We do not issue signals to indicate when naked short options should be covered. Instead, at the time a signal is issued, we state a "Suggested Exit" price. This "Suggested Exit" price may be posted as an exact price (i.e., a limit order), or it may be formulated as an "at the market price" (i.e., a market order). Our signals are always have "Suggested Exit"  price. Furthermore, a trader who made the decision to follow our trading system may may place a limit order to close a position right after this position was initiated.

When a short option trades at or below the stated limit price, we buy it back in order to cover the position. If the "Suggested Exit" price is quoted as an "at the market" price, we cover after issuing the new "Suggested Exit" price. If the new "Suggested Exit" price was issued during trading hours, we will cover the position at the market close (If you choose to follow our signals you may cover immediately). If the new "Suggested Exit" price was issued after the market close, we will cover the position at the market open on the following trading day.

Depending on the market situation and technical indicators, we may change a "Suggested Exit" price after a trading position has been initiated. If at the moment when a new signal is generated we state exact "Suggested Exit" price, after a trade was opened, we may move the "Suggested Exit" price higher or lower depending whether we want to close the position or stay longer in it. At the same time we may change the "Suggested Exit" price to the "close at the market price" if by any reason we consider a short options position should be covered (closed) immediately.

As an example, in case the market moves against our uncovered option signal, we may move the exit price up in order to reduce losses. In the same way, when the market continues to move in favor of our signal, we may move our "Suggested Exit" price lower in order to stay longer in a trade and increase profits.

In some situations, mostly when a couple of days left to the traded option's expiration date, we may set "Suggested Exit" price equal to zero. This would mean that we expect the traded options contracts to expire worthless and we intend to let them do it. In the case traded options contracts expire worthless, all the premium received for selling options short is left as a profit  and we save on the commissions as no order is executed to close the position.

In case there are any changes in the Suggested Exit" price occurred, we send out email alerts immediately thereafter, and we also post the new "Suggested Exit Price" on the members' signal page.

Exit Price

"Exit Price" is an actual price at which our trade was closed. This price is taken from the email-confirmations received from the brokers who autotrade our signals and this is the price at which orders to close a position (Buy to Close) of our subscribers who autotrade our signals were filled.