The Ultimate Trading Hack: Why Locking in Profits at the Open is CRUCIAL
I want to break down a critical lesson in options trading — why it’s so important to sell at the open after a major catalyst, like earnings or an analyst upgrade. Too many traders get caught up chasing the hype when they should be doing the opposite.
We played a $135/$140 bull call spread — a simple vertical spread where you buy the 135 call while selling the 140 — and when BABA popped at the open, we sold into strength. Why? Because right after an earnings event, implied volatility collapses, which can crush option values. And sure enough, BABA faded almost $10 off its highs, proving why locking in profits early is the smart move.
Here’s what we covered in today’s video:
📈 Why We Sold Alibaba at the Open.
💰 FOMO Buyers vs. Smart Sellers.
📉 Implied Volatility Collapse.
🔍 Next Trade Opportunities.
We also have three earnings plays for this week after the jump…
Lance is a professional trader and successful entrepreneur with over 10 years of experience in the financial markets
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