How to Take Positions With Well-Defined & Limited Downside

How to Take Positions With Well-Defined & Limited Downside

Posted On March 27, 2021 9:00 am

I’m going to take a well-deserved victory lap today, the last Saturday in March.

Despite some trades being under some pressure earlier in the month, and a few going against us…

We are finishing March strong.  

It’s been a crazy month in the markets…

The kind of month that can get you crushed if you have any naked positions.  

That’s why in Options360 we only take positions with well-defined and limited downside and we constantly manage those positions to reduce our cost basis.  

The good news for the coming weeks and months is that the Fed is still very accommodative, and the government just approved more stimulus.  I expect it won’t be the last stimulus they approve.

That doesn’t guarantee a rising market, but it doesn’t hurt!

Here are a few of the great trades Options360 subscribers have enjoyed:

  • 41%% ROI in MCD, 
  • 23% ROI in V, and 
  • 105% ROI in PHM

Just to name a few.  

And just so you know I’m not cherry-picking a few trades, our Options360 model portfolio is up a whopping 21.1% for the year.  

That’s a strong first quarter no matter how you slice it!

I’m even more enthusiastic about the weeks and months to come. 

I knew this year was going to be great.  

I hope you are having a wonderful Saturday.  I am headed to the tiki bar for a well-deserved mai tai and a few hours of R&R with my nose deep inside a detective novel.  

And on Monday I will be back, rested and rejuvenated, to help my Options360 subscribers have a banner year.  

You can join us for just $19!

To Your Success,



About author

Steve Smith

Steve Smith have been involved in all facets of the investment industry in a variety of roles ranging from speculator, educator, manager and advisor. This has taken him from the trading floors of Chicago to hedge funds on Wall Street to the world online. From 1987 to 1996, he served as a market maker at the Chicago Board of Options Exchange (CBOE) and Chicago Board of Trade (CBOT). From 1997 to 2007, he was a Senior Columnist and Managing Editor for TheStreet.com, handling their Option Alert and Short Report newsletters. The Option Alert was awarded the MIN “best business newsletter” in 2006. From 2009 to 2013, Smith was a Senior Columnist and Managing Editor for Minyanville’s OptionSmith newsletter, as well as a Risk Manager Consultant for New Vernon Capital LLC. Smith acted as an advisor to build models and option strategies to reduce portfolio exposure and enhance returns for the four main funds. Since 2015, he has worked for Adam Mesh Trading Group. There, he has managed Options360 and Earning 360, been co-leader of Option Academy, and contributed to The Option Specialist website.