{"id":74,"date":"2010-05-13T19:38:13","date_gmt":"2010-05-13T23:38:13","guid":{"rendered":"http:\/\/www.cheapiv.com\/?p=74"},"modified":"2010-05-13T21:10:50","modified_gmt":"2010-05-14T01:10:50","slug":"shorten-your-trading-time-horizon","status":"publish","type":"post","link":"http:\/\/www.cheapiv.com\/?p=74","title":{"rendered":"Shorten Your Trading Time Horizon"},"content":{"rendered":"<p>After the market drops like it did last week, the one thing that a trade has to do it become protective.\u00c2\u00a0 By this I mean that you have to assess your portfolio as to what can happen.\u00c2\u00a0 I have been saying it for weeks that you need to have protection for your portfolio.\u00c2\u00a0 You can watch the <a title=\"Portfolio Protection\" href=\"http:\/\/www.cheapiv.com\/?p=65\" target=\"_blank\">video <\/a>on how to do this if you want.\u00c2\u00a0 The next thing a trader needs to do is to adjust their time horizon while in a trade.\u00c2\u00a0 When volatility spikes like it did, we will most likely see some more spikes in the near future.\u00c2\u00a0 It is kind of like an earthquake, there are always a few after shocks.\u00c2\u00a0 The goal is to be protected if something does happen where things drop again, that you can profit or protect yourself.\u00c2\u00a0 If you shorten your time frame, you are looking for profits and taking losses quicker then you normal.\u00c2\u00a0 Keep a careful eye on key support areas in the market and sectors of your stocks.\u00c2\u00a0 The next thing I do is adjust my premium positions to be more aggressive.\u00c2\u00a0 If I have stocks that I think are going to sit still over the next few months, then rather then just selling front month upside calls, I may go out a a few months to sell a closer to the ATM.\u00c2\u00a0 This gives me\u00c2\u00a0 more premium if the market goes lower.\u00c2\u00a0 In the example below,\u00c2\u00a0 XOM, rather then selling the June 67 call on the Bid for $0.58, someone may want to sell the Oct. 65 calls which are $3.6 Bid.<\/p>\n<p><a href=\"http:\/\/www.cheapiv.com\/wp-content\/uploads\/optionsdefensiveroll.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-78\" title=\"optionsdefensiveroll\" src=\"http:\/\/www.cheapiv.com\/wp-content\/uploads\/optionsdefensiveroll.jpg\" alt=\"Option Premium\" width=\"680\" height=\"464\" srcset=\"http:\/\/www.cheapiv.com\/wp-content\/uploads\/optionsdefensiveroll.jpg 680w, http:\/\/www.cheapiv.com\/wp-content\/uploads\/optionsdefensiveroll-300x204.jpg 300w\" sizes=\"auto, (max-width: 680px) 100vw, 680px\" \/><\/a><\/p>\n<p><strong>Watch the Video Below for More:<\/strong><\/p>\n<p><strong>Register Below or login to right:<\/strong><\/p>\n<p>[private_free]<br \/>\n<object classid=\"clsid:d27cdb6e-ae6d-11cf-96b8-444553540000\" width=\"500\" height=\"405\" codebase=\"http:\/\/download.macromedia.com\/pub\/shockwave\/cabs\/flash\/swflash.cab#version=6,0,40,0\"><param name=\"allowFullScreen\" value=\"true\" \/><param name=\"allowscriptaccess\" value=\"always\" \/><param name=\"src\" value=\"http:\/\/www.cheapiv.com\/videos\/Trading20100513\/Trading20100513.swf\" \/><param name=\"allowfullscreen\" value=\"true\" \/><\/object><br \/>\n[\/private_free]<\/p>\n<p>[register_free]<\/p>\n","protected":false},"excerpt":{"rendered":"<p>After the market drops like it did last week, the one thing that a trade has to do it become protective.\u00c2\u00a0 By this I mean that you have to assess your portfolio as to what can happen.\u00c2\u00a0 I have been saying it for weeks that you need to have protection for your portfolio.\u00c2\u00a0 You can [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[11,17,8,49,9,12,50,10],"class_list":["post-74","post","type-post","status-publish","format-standard","hentry","category-commentary","tag-implied-volatility","tag-market","tag-options","tag-portfolio-protection","tag-stocks","tag-strategy","tag-trading","tag-volatility"],"jetpack_featured_media_url":"","_links":{"self":[{"href":"http:\/\/www.cheapiv.com\/index.php?rest_route=\/wp\/v2\/posts\/74","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/www.cheapiv.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.cheapiv.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.cheapiv.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/www.cheapiv.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=74"}],"version-history":[{"count":0,"href":"http:\/\/www.cheapiv.com\/index.php?rest_route=\/wp\/v2\/posts\/74\/revisions"}],"wp:attachment":[{"href":"http:\/\/www.cheapiv.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=74"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.cheapiv.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=74"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.cheapiv.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=74"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}