After-Close Strategies

Our system generates signals during the trading hours and as a rule majority of our signals are executed on the same trading day the signal is issued. At the end of the day we send summary alerts and reflect any signals changes if they took place during the trading hours.

Some of our subscribers receive evening summary signals' email-alerts or may check signal changes after the market closes only due to various reasons including a full time job. Since system generates 2-4 signals a month with staying in the position for 5-10 days in average, there is a possibility of using our options alerts on the next trading day after a signal was issued.

There are several simple trading strategies to use our options alerts on the next day. These strategies described below are mainly focused on opening a position in accordance with our signal. As a rule there is no problem closing a position, since, our signals clearly state the exit limit price and the stop-loss limit price which could be set any time. Still, in the case when we change the "Suggested Exit" or "Stop Loss" prices during the trading hours and the position (trade) is closed by either of them on the same trading day, a trader who decided to follow our signals may adopt the strategies below to close the position.

Strategy #1 - More conservative (recommended):

If the system opened a position a trader may set a limit order for the next trading day to sell options short at the same open price or even at a higher price if he/she sees that the options are traded higher.

In this case a trader may miss some of the trades if the market does not give the same price to open a trade on the next trading day. However, there could be a situation when a trader will be able to open a position at a better price and, because of that, the trades should be more profitable.

Strategy #2 - More aggressive (not recommended):

If the system opened a position and set a market order to sell options short at the market open on the next trading day.

This strategy is considered risky, since, there could be a situation when a trade is opened at a higher then "Suggested Entry Price" and therefore be less profitable.

Strategy #3 - Advanced (recommended):

With this strategy, before making a decision to open a trade on the next trading day, a trader analyzes his/her technical indicators to see if our signal goes along with his/her analysis and he/she feels comfortable to open a trade.

Those of the traders who follow our signals during the trading hours have limited time to make a decision whether to follow our signal or not. At the same time a trader who has to make a decision after the market closes has plenty of time for additional analysis.