Ryan Melancon asked 6 years ago Hi Pat, i've learned from you to focus on clean entries into a position because then we have a clean exit. I'm wondering though when buying options on a stock off the Max List, does the "clean exit" rule still apply or do you give the option a little more "room to breathe" on your stop in case of a retest or shake out?
Owen Staff answered 6 years ago From Pat:
Good morning Ryan.
Good question with options and pricing! I always defer to the price of the stock in my decisions, even with options. This is the price that is most “relevant.” And if a breakout fails, the premium on that option can drop very fast. So we’ll be stringent with it. BTW, options can be a great way to get involved with the stock movement. I’m sure you know this, but be very careful during earnings season cuz the options premium can disappear quickly. Hope that helps!
Sincerely
Pat
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