Option Investor

USNA pops right through the STOP LIMIT..we get filled at $3.00 STOP LIMIT

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USNA pops right through STOP LIMIT then comes off highs. Our USNA Jan 45 short call gets closed out at $3.00 DEBIT STOP LIMIT. Our contingency order to sell our USNA Jan 50 call is closed out for $0.90 CREDIT.

NOTE: the exit strategy called for a

If you used a stop order instead of a STOP LIMIT, you probably go filled at $4.50 - $5.00.

Remember: A STOP order when triggered makes your order become a MARKET order and is filled at the next price no mater what it is.

A STOP LIMIT order triggers your order and will only be filled at the LIMIT price ( in this case $3.20 or less, never more. ) Some subcribers today, probably lucked out and got out for as low as $2.45 depending on where their order stood in line.

Subcribers will have varies outcomes depending on following the exit strategy or not, using a STOP instead of a STOP order, or using a mental stop. a subcriber who used mental stop may still find himself in the spread, while all other subcribers who used the STOP LIMIT exit or STOP will be exited from the trade.

Please see below on what could have happen to subcribers who followed the exit strategy

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