Steven Sitkowski from the Market Mastery Group Details What to Consider When Trading Stock Options

PEARL RIVER, N.Y. - July 16, 2020 - PRLog -- There are a lot of key factors to consider when looking into a stock option trade. Steven Sitkowski from the Market Mastery Group details the important things to consider when trading options.

You must analyze the trend of a stock, which is found through a technical analysis of the stock's charts. Steven Sitkowski recommends using indicators such as the moving averages, the MACD, the relative strength index. Use these indicators to determine if the stock is likely to do up or down. Consider the type of option you would like to buy. There are three types of options, in the money, at the money, and out of the money. He says you must look at the expiration date of the trade. Certain types of trades need different expiration dates. The volatility of the market is a huge thing to consider. When the market is highly volatile options are expensive, which is a good time to sell. Sell when implied volatility is high and buy when it is low. When trading stocks, you need to know when to exit a trade. Use technical analysis to make your exit decision. If you have a call option and the trend indicators say the stock is not likely to go up anymore, then sell out and harvest your profits.

Lastly you need to utilize stop order and limit order so you can roll with your winners and lock in your profits. Steven Sitkowski from Market Mastery Group explains each consideration in detail in our latest YouTube Video.

To learn more about the Market Mastery Group, please click here: https://www.marketmasterygroup.com/

To learn more about option considerations, please click here: https://youtu.be/sZSKbIQqdpY