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Options 101: How to set Basic Stops on Naked Puts and Covered Calls

July 18, 2015

By | 9 Comments

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Want to make it so you don’t have to babysit your trades 24/7? Basic stops are for you, then.

Stops are just like what they sound like: they’re an instruction to your broker to stop a trade based on the rules you personally set.

In this video tutorial, Coach T walks the team through how to set a basic stop on a covered call or naked put position.

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9 Replies to “Options 101: How to set Basic Stops on Naked Puts and Covered Calls”

  1. RaymondRoyer says:

    Thanks Tim. My trades have improved as I continue to refine my trade management.

  2. Rinahafiz says:

    Thanks Tim, I have your covered call spreadsheet… can you post an example of one filled out…just one stock so I can model?

  3. BorisPortnov says:

    Where can we download the “playbook” spreadsheet you make reference to in this video?

  4. Tim Justice says:

    you can email me directly Boris timjusticementoring @ gmail.com

  5. CHEELEOW says:

    Hi. Followed this here from the Morning Report and would like to study it. But the video does not seem to be embedded anymore. Can it please be reloaded? Thanks!

  6. Tim Justice says:

    Should be working now. I had to update the link.



    This is using a pre-existing Covered Call that has allow ready collected an upside. You recommend breakeven as a beginner move for stop loss. What if you are creating a new covered call? Looking at the Risk profile and chart, the break is your initial cost for the trade. Or am I reading something your wrong. I think I have watched every covered call video, playbook, and ttos rules. LOL. I get the feeling I am missing something. ???

  8. Tim Justice says:

    You will need to learn to protect the risk Herbert, and your rule should be specific to you and how you trade the particular instruments you pick. I suggest practicing, backtesting, simulation and design. How many covered calls have you traded and have you kept a journal of your trades?


    Maybe I should move this to clubhouse discussion? But, I’m 1 for 5 paper trades right now. 1 profit, 3 losses, all stopped out early into the trade using Breakeven and RoR for stop loss. Losses were minimal and acceptable individually. Just adds up as a whole. I’m setting up as if it were my live account which puts my RoR at about $60. Weekly support is outside my current comfort zone. Using the TT Excel journal. Good news is I have an active AMD trade for the past week, still going, still in my favor, and currently at breakeven for a stop loss. Trying to keep my patience up and emotions out. I’m can be easily frustrated, but fortunately that usually just ups my determination to figure out whatever it is. Just looking for guidance as a new trader.

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