7 Ways to Eliminate Risk in Options Trading

**Managing a trade that gets tested is one of the most important skills an options trader can learn. And entering a trade without a risk management plan is a recipe for a short term trading career.** Come learn about 7 different ways to manage risk as you enter a trade and as you adjust tested positions. We will discuss a few real-life trades and how we managed the risk towards a profitable trade. HAVE A PLAN - 3 Ways to Manage Risk Before you make your Option Trades: 1\. Plan your trade based upon DELTA\. 2\. Number of Contracts\, Allowed and Max Loss perimeters preset before entering the trades\. 3\. Diversification of Underlying \(non\-correlated\) FLEXIBILITY INSIDE OF YOUR PLAN - 2 Ways to Manage Risk when a position is tested. 4\. Adjustments for tested positions\. Roll up\, Roll Away\, Roll Out\, Take the Loss and move on\. 5\. Duration trumps Direction – Case study on one or two real\-life trades MANAGING FOR THE UNEXPECTED - 2 Ways to Manage Against Black Swans: 6\. Buy Very OTM Puts in an Index 7\. Hold Real Assets like Gold and Silver or Options in Gold