Hey Traders,
Let’s talk about where we are right now…
We’ve got the DIA, SPY, and QQQ all sitting near all-time highs. The market’s still bullish across the board — but it’s not all moving evenly.
The Dow (DIA) is starting to flatten out a little. Not bearish… just lagging.
Meanwhile, SPY and especially QQQ (that’s where tech is) are still ripping.
Now when that happens — when the indexes are at highs — it usually means individual names are at highs too.
And if you’re sitting on some winners right now, I’ve got a few smart moves you can make today to protect those gains without unloading your positions.
Married Puts: Insurance for Your Gains
In a previous video, I told you about one of my favorite ways to protect a stock I want to keep holding is with a married put.
Here’s how it works:
You buy an at-the-money put option on the same stock you own. Each put option gives you the right to sell 100 shares at the strike price of the put — even if the stock tanks.
Think of it like insurance. If the stock goes up, the put loses value — but who cares? Your stock is climbing. If the stock drops? That put goes up in value and helps cushion the blow.
And in a market this extended, having that floor in place can help you sleep a lot better at night.
Set It and Forget It
But today I want to talk to you about another way I protect my profits in a market like this.
It’s called a stop-loss order.
Let’s say your stock’s trading at $100. You could place a stop-loss order at $95 or $93 — maybe 5–7% below the current price.
If the stock drops that far, your broker sells the position automatically.
Simple. Clean. And it forces discipline — which a lot of traders lack when panic hits.
Trailing Stops: Lock in Gains as You Go
A fancier version of this is called the trailing stop-loss.
Instead of setting a one specific price to sell at, the trailing stop-loss follows the stock up.
If your stock climbs from $100 to $110, your trailing stop moves up with it. If the stock pulls back from $110 to $105? It gets triggered, and you’re out — locking in that gain.
It’s like a ratchet. You can only go one direction: up.
Not Saying I Want the Market To Crash, But…
Look — I’m not saying I want the market to crash. But the truth is, I like a little volatility.
Markets that just go up, up, up? They’re tougher to trade, because they start to feel extended. You end up wondering how long the party can keep going.
That’s why I’m getting more cautious here.
Not bearish… just smart.
Because I’ve seen this movie before. And I’m not about to let a little market euphoria wipe out my hard-earned gains.
So hedge yourself. Use married puts and stop-loss orders to insulate yourself from big losses.
Because the market can do whatever it wants… but that doesn’t mean you have to sit there unprotected.
Trade well,
Jack Carter
P.S. Another smart strategy? Trading one of the most volatile stocks on the market for weekly income. Check it out here.
