What about stops on options trades?
We use the stop loss level for the underlying stock because it applies to our option as well. If we get stopped out on the stock, that’s when we recommend you sell your option contracts as well.
Remember, the trailing stops we use are designed to keep us in the trend as long as possible. They give us enough room to the downside that we won’t get stopped out on every little correction without giving us so much room that we’re exposed to a ton of risk.
That said, there’s one little exception to our stop rule that I believe in: There’s never anything wrong with taking less risk.
If you ever feel like you’re exposed to too much risk in a trade, go ahead and take some gains now or use a tighter stop loss price than our official stop — just know that the trend we’re following could still move quite a bit higher after you sell.
Finally, if you’re not getting our options recommendations with your Trend Following trades, it’s because our options strategy is an exclusive add-on for lifetime members. If you’re not yet a lifetime member of Trend Following but you’d like to become one, please call (866) 361-7622 and a member of our customer service team will take care of you.
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