The trade was entered yesterday. We used options to minimize risk due to the Federal Reserve announcement this week and all the volatility that comes with it. The stop is 13800.00. This is a 66pt risk. Since this is a huge value, an option strategy will be used to reduce the risk drastically. Volatility is very high so a directional butterfly was used. Therefore, we are going to try to take advantage of this volatility along with price movement. Our stop is based on a close below 13800.00
For EDUCATIONAL USE. Commodity Futures Trading Commission, Forex, Futures, Equity and options trading has large potential rewards, but also large potential risk and may not be suitable for everyone. You must be aware of the risks and be willing to accept them in order to invest in these markets. Do not trade with money you can not afford to lose. This is neither a solicitation nor an offer to Buy/Sell. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this document. The past performance of any trading system or methodology is not necessarily indicative of future results. All information provide d on the Blog is for educational purpose .
