🚨 I’ll be live at 1:30 p.m. ET 🚨
We’re finally seeing healthy movement in the market, and it may be time to get more aggressive — stop by for the gameplan, the tickers we’re targeting and more [tap to join us for Stonkamania]!
Ever heard the acronym K.I.S.S.?
It means: Keep it simple, stupid!
And after 18 years of trading everything under the sun, I’ve finally figured out the secret to staying in the game — and it’s not what most people think.
It’s not about learning more complex strategies. It’s about doing less.
I’ve done everything, and I’m telling you right now — don’t do anything past Level 3, and even just Level 2 for many people. That’s it. It should be stock, long options, and simple spreads if you need to reduce your cost.
That’s the framework.
Let me break it down. Level 1 is stock trading, so that’s as simple as it gets. Level 2 is buying calls if you’re bullish or buying puts if you’re bearish.
Level 3 with some brokers is for simple spreads. If you’re trading a big stock and you’ve got a small account, do a call spread to reduce the net debit — but make sure it’s liquid. Do not go any further out than two to four weeks and never beyond a month.
If you want to sell premium because a stock or index has high implied volatility, do a credit spread — and indexes are the safest because they’re cash settled. You will not get assigned the stock, which is especially crucial for small accounts.
Why Complex Trades Fail
I used to think the more advanced the strategy, the smarter I was and the more money I’d make. I ran diagonals, calendars, ratio spreads, even those 1×2 structures that look clever on paper.
Every one of them added more moving parts and more ways for the trade to go wrong.
It’s like owning an old classic car versus a modern hybrid. The old engine is simple. You know every part, you can fix it, you can understand it. The hybrid has wires, sensors, computers — and when something breaks, good luck.
Complex option spreads are the same way. They may look sophisticated, but when they break, they break in ways you never expect because of all the moving parts.
Lessons From Painful Mistakes
I’ve blown up accounts doing those types of trades in the past. You think you’re collecting a few easy nickels but you’re stepping right in front of a truck. One big move, one volatility crush, one overnight gap — and suddenly you’re losing more than you planned or you’re stuck in something you cannot unwind.
That’s why simplicity wins. It removes the guesswork and gives you clarity. With clean long options and basic spreads, you always know your max loss, your time frame and your exit.
The Questions That Actually Matter
Liquidity is everything. It determines whether your bid ask spreads allow you to exit at a good price. When you’re trading something illiquid, the market makers tell you what your trade is worth — and it’s never in your favor.
So think in terms of risk first. Think about how much you can lose before thinking about how much you can make. Don’t let greed win.
I ask myself those questions before every trade, and it is the reason I’m still here after nearly two decades.
Get comfortable doing the basics like buying one call option or buying a stock because that has the best liquidity. Keep your trades simple, keep your time frames tight and stick with names where you can always hit the button and get filled without getting punished by the spread.
That’s it. That’s the framework. Liquidity keeps you alive. Simplicity keeps you consistent. Good habits keep you in the game long enough to actually win it.
And remember — K.I.S.S.!
Order Flow:
This is for informational and educational purposes only. These are not official alerts issued by Lance, but rather some interesting orders picked by the team at Lance Ippolito Trading.
When you look at these plays, always take the market maker move into consideration.
You can be right on the direction but still lose money if the stock doesn’t move enough. That’s where the market maker move comes in clutch.
With puts, they’re often downside hedges in case a stock tanks, especially around earnings. The further out of the money they are, the more likely they are to be hedges.
Also be sure and check when the company’s earnings date is because many of the plays we post here are centered around earnings!
If a stock is really expensive, consider a spread to lower the cost.
And finally, always remember the golden rule when it comes to buying calls: Buy dips, sell rips — and don’t chase!
If a stock’s moved a ton already today, maybe wait for a pullback.
There is inherent risk in trading. Trade at your own risk.
Note: If no date is listed after the month, it’s the monthly expiration (third Friday).
The team at Lance Ippolito Trading
Lance doesn’t want the CCP spying on him, so you’ll never find him on TikTok. Same goes for other social media sites, which are filled with impersonators, scammers and crypto bros.
You can only find him on his personal YouTube Channel — smash that Subscribe button! https://www.youtube.com/@LanceIppolito
And in his private Telegram channel: https://t.me/+-gVwEIwGJhplMTgx
Important Note: No one from the team at Lance Ippolito Trading, New Money Crew or any of its associated brands will ever contact you directly on Telegram.
*This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk.
P.S. Check Out This Week’s Biggest Movers
I’m keeping this momentum going with the top names being flagged for explosive moves to the up or down side.
If all goes as planned, they could result in gains of 2x or more, oftentimes overnight because a lot of these babies move pretty fast…
*We develop tools and strategies to the best of our ability, but no one can guarantee the future. There is always a risk of loss when trading past performance is not indicative of future results. The examples displayed are historical trade ideas found in real-time. There were smaller wins and those that did not work out. Since The News Flow Scanner is a tool for traders and not a trading service, profits and performance will vary among users. Trade at your own risk.
