Options Theory: Best Practices for Stop, Entry, Target
May 13, 2021
Today’s video outlines the techniques you can use to place entries, stops, and targets for our Scouting Report picks.
Notes from Video:
The exact rules/best practices are taught in our S.T.E.P. SYSTEM.
Bull List:
Bull Retracement Patterns
Trigger:
- Buy above prior day’s high. ($89.56)
- Buy above intraday resistance.
Stop Loss:
- Exit if stock breaks support. The lowest bar of the pullback.
- Exit if stock falls 1.1 ATR.
Target:
We’re fans of scaling out.
- 1 ATR profit
- Prior resistance zone.
Bull Breakout Patterns
Trigger:
- Buy above resistance
Stop Loss:
- Exit if stock falls 1.1 ATR.
- Exit if stock breaks prior day’s low.
- Exit if stock breaks the low of the base.
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