How to Minimize Your Risk in the Market

If the market does go against you and you're out of the money as the stock, or in this case, SPX rallies up to your short strike, if it gets there, the credit you can receive is a lot greater. That particular trade, the market was trading at 41, oh, nine, I'll call 4110. And I thought there was a chance we could rally back up and maybe retest that area. Three days later, we were retesting 41.75. But even though the market moved up to that level, volatility had dropped and I was actually able to close that trade for a small profit three days later.

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