When a Ticker Makes Targets

Hey Traders!

On Monday, I sent you a video about my short-term setup in Tesla, along with my $250 price target. You can check it out in the Tweet below…

Since then, the squeezes I noted fired to the long side, and Tesla traded directly to my Fibonacci price target at the 1.272% extension level. Check out a screenshot below:

As you can see, since TSLA hit the Fibonacci extension level, it’s already come back down. This is why it’s important to take profits at targets! I know many of you made money on this idea, because I got the messages! Cha-ching!

When trading, especially with butterflies, the idea is to take profits as close as possible to the center strike, which is also the profit target zone. One common question I get with butterflies is, “Do you wait until the day of expiration to close your trade?” NO! I do not.

I take profits at the profit target zone whenever the ticker gets there. This could be a few days before expiration, or it could be a few weeks. In a perfect world, it gets there within 3-5 days of expiration, as that is when the best profit potential lies, as it’s when the butterfly matures. It won’t be as profitable if it gets there earlier than that, but you should still make money.

Want to learn more about butterflies? Check out my Stacked Profits class with our Black Friday sale. Today is the last day!

 

 

Up Next...

Managing Butterfly Spreads & Taking Profits: DKNG

Hey traders! I’ve been busy making videos after taking your requests! I’ve created a full series on how I manage spreads and butterflies, which you can find on my Youtube channel.  The latest video in the series is an overview of a bullish fly I placed in the Simpler Central room, along with a new … Read more

Read More

Top 5 Charts to Watch This Week…

Hey Traders! What are you trading this week? Check out my Top 5 charts in the video review below… In this market, it’s most important to focus on spots with high liquidity, major setups, and options action that tells you where to look for targets. What are you trading? Let me know below!

Read More

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 … 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
all-as-seen-on-logos