What Rules Must I Follow with Weekend Player?

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You Will Generally Have Two Days to Get into Each Trade.

Each Schaeffer's Weekend Player recommendation will be delivered to you by email by 7 P.M. Eastern time on Sunday. The key is to enter the trade at an acceptable entry price, based on the current asked price at the time of the recommendation. While it is possible to miss a "quick mover," by exercising the discipline to refuse to pay an inflated entry price, your longterm bottom line will be far better off by not "chasing" positions.

You will normally have two trading days to enter the Schaeffer's Weekend Player trade at a desirable entry price, unless otherwise instructed. If you can't get in by the end of the second trading day, wait for the next trade.

Place Day-Limit Orders to Enter New Positions.

Day-limit orders (a limit order entered through a broker that is automatically canceled at the close of business on that day if not executed on that day) are by far your best bet for assuring that you enter a recommendation at an acceptable entry price. Unlike market orders, day-limit orders often get filled at prices between the bid/asked spread, and sometimes are executed at the bid price. Market orders, on the other hand, are almost always executed at the asked price, and the asked price is often a "moving target" that gets ratcheted up as orders flow into the trading floor.

Therefore, always enter a day-limit order to purchase the recommended option. This will assure that you will purchase the recommendation at an acceptable entry price. Never enter a market order to buy a Schaeffer's Weekend Player options trade recommendation.

Note that day-limit orders expire at the end of that day's trading, so if your order is not filled at the end of the first day, you may need to place another order on the second day. If that order is not filled at the end of the second day, you are advised to wait for the next trade from Schaeffer's Weekend Player.

Allocate Approximately Equal Percentages to Each Trade

We strongly recommend that you invest a constant percentage of your available options trading capital in each Schaeffer's Weekend Player trade. This takes the guesswork out of deciding which trade will likely be a winner and which may be a loser. Remember that there will always be losing trades. Profits are made by cutting losses short and letting profits run their course.

Follow the Close-Out Parameters

An important benefit of Schaeffer's Weekend Player options trade recommendations is that you will receive time-stop instructions as well as profit objectives with each trade. This way, you will know at the onset of each trade what your goals are and when to exit.

Our profit objective for most of Schaeffer's Weekend Player trade recommendations is a 200% gain (triple your initial investment). But there is more than one way to achieve a 200% bottom-line profit. The simplest is to just hold your position until the option reaches a level equal to triple your purchase price and then exit. We will avail ourselves of this approach, but on other occasions we will instruct you to close half of your position (i.e., if you own two contracts, you will close one contract) at a level of profit less than 200%. This does not mean we have abandoned our bottom-line 200% profit objective -- it simply means we felt it prudent to take some profit dollars off the table and to then hold the remaining portion of the position until it reaches a profit level consistent with a 200% bottom-line gain.

For example, if we advise you to close half of your Schaeffer's Weekend Player position at a profit level of +100%, we will implicitly target for a 300% gain on the remaining half of the position, so as to bottom-line to +200% on the entire position. Or if the partial profit is to be taken at a 150% gain, then the remaining half of the original position would be held with a profit objective of +250%, so as to bottom-line to +200% on the entire position. If there is any change to this approach, you will be notified in your regularly scheduled Sunday bulletin.

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