Hey Traders,
A trade I did with my members last week was more than a win, it was a lesson.
Because even though the trade ended up paying out, it came within inches of going the other way.
Let me show you what happened — and why the strategy we used made all the difference.
The Setup
This was a classic bear call spread that we entered on Tuesday:
- Sold the 205 call
- Bought the 210 call
That gave us a net credit — which is how we make our money on this trade.
As long as the stock stays below 205, we keep that premium and the options expire worthless at the end of the week.
Simple enough, right?
Then It Got Close…
Here’s what the chart looked like by the end of the week:
The stock was trending higher all week.
By Friday afternoon, it was bumping right up against the 205 level, which was right at our short strike.
In these cases, you’ve got two choices:
- Unwind the trade early and lock in a small profit or a loss, depending on the cost
- Do nothing — but only if you believe the stock will move back below your short strike by market close
I chose to do nothing — and this week I was right.
The Power of Structure
Right at the end of the day, the stock pulled back — finishing below 205.
That meant both options expired worthless.
And I kept the full premium.
But here’s the point:
If you don’t have a repeatable plan — if you panic when trades get close — you won’t be able to stay calm and finish strong.
This wasn’t luck.
It was structure, process, and discipline.
Final Thoughts
In trading, sometimes you’ll be way right.
Sometimes you’ll be way wrong.
This week I was wrong on the way the stock was going to move. Clearly, it moved against us almost from the moment we placed the trade.
But that’s why we don’t just bet on the direction.
With strategies like this bear call spread, we don’t just have a theory about which way the stock is going to move over the next few days.
We select strike prices that give us a comfortable cushion.
Most weeks, that cushion doesn’t come anywhere close to being breached.
This past week, we saw the power of having that cushion when we need it.
As I’ve told you in the past, it’s not just about picking the right stock anymore. It’s about using the right strategy — one that stacks the odds in your favor — even when the trade runs a little hot.
That’s how you stay in the game.
And that’s how you win — even when it’s close.
Trade well,
Jack Carter
P.S. Nate Tucci just shared three stocks he says he’d “bet the house on”. Get them here.
