Taking Profits: Managing a Butterfly when Price Explodes

Hey traders!

Nvidia earnings is out, and the stock continues exploding. On this ticker, I made two different small lotto bets. One was a bearish trade, in case the ticker had a bad reaction, and the other was a bullish bet. While I lost money on the bear side, the bull side made money. The target I selected was pretty close to right, seeing as I picked $750 and the stock gapped up to $750.27, but the ticker continued taking off on high volume and price traded through the center strike of my fly.

A few weeks ago I sent out a request to my readers asking what kind of videos you most wanted me to make, and overwhelmingly the answer was that readers wanted videos about how to manage butterflies.

With the explosive move, and the stock trading up to $781 (and will likely continue onward), I wanted to make sure I closed this fly for my 4x profit before the profits disappeared if the stock kept going. While doing so, I went ahead and made you a video about how this trade played out.

Now, I didn’t actually make a 4x total because I had to subtract my hedge (why I don’t generally like hedges), but that is what happens when you make a trade going both directions.

Want to learn more, and check out my new trade? Watch the video below. Make sure to subscribe to my channel to be alerted when I upload a new video!



Join me and my fellow traders in the Simpler Central room for $1! You’ll get 60 days of access to our daily live trading, real-time trade alerts, and premium nightly videos. Check it out here.


Up Next...

Critical Stock Market Red Flags

With earnings season just beginning, we are entering the most risky time frame for the stock market. Netflix earnings week is already kicking off with a bang. The Nasdaq sold off yesterday, ending the day down -1.67%, with critical stocks like Tesla down -5.59%, Microsoft down -1.97%, and Meta down -2.28%. This occurred after escalating … Read more

Read More

Using Conservative Sell Signals To Exit

Hey traders! In this week’s trade review video, I discuss the conservative signals I had that caused me to take a cautious profit on Amazon. Sometimes I’ll take conservative profits, especially in a case like before CPI data when a news-related event is upcoming. Now, of course, if you take conservative profits, you cannot capitalize … Read more

Read More

The Biggest Pre-Earnings Movers

Identifying Stocks on the Move This week marks the kick-off to Q1 earnings season, as the banks will begin to report on Friday. This means that we are in the prime time for pre-earnings movers when stocks will move either up or down as investors make moves before earnings. To look for patterns and tickers, … Read more

Read More

Subscribe Today!

Want my up-to-date analysis, setups, top trading tips, and more? Be a Five Star trader, and join my free newsletter today!

Sign Up Now