July 14h, 2023

This One-Day Closeout Proves There’s Always Another Trade

I’ve written about The Trade Desk (TTD) in the past. That’s because we’ve closed 17 winners in a row on the stock since we began trading it in Options Income Weekly back in early 2022.

In total, we’ve generated $574 in cash for just one contract sold with an average return of 0.6% per trade and an average holding time of less than five days.

But our latest trade was a bit different. And not just because we booked a profit in less than 24 hours. What made our latest TTD trade different was the trade we missed.

Let me explain.

In Tuesday’s Options Income Weekly live trading session, we recommended members sell to open the TTD 28 Jul 73 Put. But we didn’t like the price we were seeing on our broker screen at the time. So, we utilized a good ‘til canceled (GTC) order, setting a price of $0.65 and hoping we could enter the trade on a pullback in the stock.

But TTD kept running higher on Tuesday, and it was clear by early Wednesday afternoon that we had missed the trade.

So, we sent an alert to members telling them to cancel their existing GTC order and instead sell a TTD 28 Jul 78 Put for around $0.76, setting a target exit price of $0.30.

When the market opened on Thursday, TTD continued its run, rallying 6% in the first 30 minutes of trading. This dropped the premium on our put to $0.25, so we issued a closeout alert.

Options Income Weekly members booked a profit of $0.51, or $51 per contract, for a return of 0.7% on the $2,800 in capital used to secure the trade.

This is yet another example of how patience can pay off handsomely and why we like to say, “There’s always another trade.”

Trade Smart, 

Emily Norris
Managing Editor, Traders Reserve