How To Manage A Trade That's In Trouble - My Options Trade On TQQQ

Coffee With Markus | Episode 90

Intro: 00:00
What's Happening In The Markets?: 1:59
PowerX Strategy Trade Review (ARVN, LL & ROL): 3:40
The Wheel Strategy Trade Review (AAPL & TRGP): 7:37
How To Manage A Trade That's In Trouble - My Options Trade On TQQQ: 10:35
Deep Dive Q&A: 22:34
Q: What did you do with the AIG Wheel trade? 26:18
Q: How do you know what call to purchase after your stock has been assigned? 27:22
Q: How much leverage does he have on this account...he was assigned 50k or so in stocks, by those calcs, on a 20k account: 33:29

So going into the end of the week the major indexes are all down again. If we take a look at the S&P 500, it's holding support at 3,300. If you recall we've talked a lot about this level over the last couple of videos. This week we had The Fed come out and say they don't plan to raise rates anytime soon and traders still seem to be digesting what this could mean long term. In my opinion, we're still just seeing more profit taking right now. Yesterday there were slightly worse unemployment number than expected, but I don't think there's really one thing right now that you can blame the sell off on...once again, after a nice run up like we've seen, traders and investors take profits.

So before we get into our discussion on TQQQ, I want to review some of my other current positions. Here are a few new trades I have based on my swing trading strategy, "The PowerX Strategy":

ARVN | Stock | Long
LL | Options | Short
ROL | Stock | Short

After two days I'm up around $280 on these positions, so not too bad on a $20,000 account.

Now, let's review my current "Wheel" trade positions:

AAPL: Going into the close, if AAPL dips below $107.50/share it will fall below the Put strike we sold and will be assigned 100 shares/option I sold...which is totally fine with me. If this happens, I will look to sell call options against the shares (covered calls) to collect premium. This is how it works.

TRGP: This is one where unless we see a drastic move higher into the close, I will be assigned shares of TRGP...which once again, is all part of trading The Wheel. In the same case as AAPL, we will just sell calls against them to collect premium. Now for TQQQ :)

Earlier today I placed a trade in TQQQ and nearly immediately the trade started moving against me. So in times like these, should you rush for the eject button and just get out of the trade?

Well, if you've listened to me for any length of time you know that I never enter a trade without a plan. So let's review the trade itself:

1) Sold 150 Strike Puts For $66
2) I had to buy 100 shares of TQQQ at $150
3) Sold a Call for $2.10 and bought it back for $0.37 = $173
4) Sold a Call for $0.45 and bought it back for $0.05 =$40
Total REALIZED Profit: $279 In 15 Days

TODAY:
5) I sold another 2x Put 100 Strike For $1.14 = $228

Two Possible Scenarios:
1) TQQQ stays above 100 on Sept 25 (in one week from now): Keep $228 and my total profit from this trade goes up to $507
2) TQQQ drops below 100 on Sept 25 and I have to buy another 200 shares for $100/each
If this happens, and I'm assigned shares this would bring my average price per share down to $116.66. This means that in this scenario, we would just need to get above $116.66 with our shares to start making money.

#howtomanageatradeintrouble #managingalosingtrade #tqqqoptions
=============================================================================================
✅ First, subscribe to my channel here so you never miss a new video: https://bit.ly/3aLKLDz
📺 Watch My Daily Trading Routine that takes me less than 15 minutes a day: https://go.rockwelltrading.com/my-trading-routine
📕Get a FREE Hardback Copy Of My New Book “The Wheel Options Trading Strategy”: https://go.rockwelltrading.com/the-wheel-book
💻 Need a broker? We prefer trading using Tradier! Sign up here: https://go.rockwelltrading.com/tradier-brokerage
📈 TradingView is my favorite charting platform. I use the Pro Version: https://go.rockwelltrading.com/tradingview-signup
================================================================================
tastyworks, Inc. (“tastyworks”) has entered into a Marketing Agreement with Rockwell Trading Services, LLC whereby tastyworks pays compensation to Rockwell Trading Services, LLC to recommend tastyworks’ brokerage services. The existence of this Marketing Agreement should not be deemed as an endorsement or recommendation of Rockwell Trading Services, LLC by tastyworks and/or any of its affiliated companies. Neither tastyworks nor any of its affiliated companies is responsible for the privacy practices of Rockwell Trading Services, LLC or this website. tastyworks does not warrant the accuracy or content of the products or services offered by Rockwell Trading Services, LLC or this website. Rockwell Trading Services, LLC is independent and is not an affiliate of tastyworks.

Видео How To Manage A Trade That's In Trouble - My Options Trade On TQQQ канала Markus Heitkoetter