 Good morning guys! This is Giovanni from the Options Trading Channel. Today is April 14, 2020. The markets are about to open here in just a minute or so and I want to show exactly why you need at least two contracts to trade this strategy effectively because of the scaling out methodology anyways. The market has gapped up significantly in the Q's situation from 203 and it looks like it's going to open around 207 about $4 higher. Take a look at what the options are going to do. They closed at 740 yesterday. If you remember correctly I sold at 738. Let's see where they open up today. And had I kept one call option in there and they're trading at $9.64 by 10.25 and I bought them at 6.71 so that's a huge huge huge gap up. That's why you need at least two contracts and I at the very least I wanted to show you that it's possible. What is possible in the options market guys. Alrighty guys I think I'm going to go ahead and buy one of the 207 calls that expire in 10 days for the Q's. Put in a limit order at $7 even. I got executed there and it's 12 minutes before the close of this candle but I want to go ahead and get in just in case. Alrighty I'm going to see if I can buy another one here. Buy one limit order. I'm going to try to get in a little bit below $6.95. There you go I got in and it drops to $6.87. Great just to show you the trade that I'm in. I bought two 207 call options at expiring eight in excuse me in 10 days April 24th. My average is at $6.97.50 and we're just going to see where we go from here hopefully it goes up higher over the next several hours on through tomorrow but I'm going to set myself a stop loss maximum stop loss. I don't like to do this but because I'm going in with 100% of my portfolio I'm going to go head and have a max stop loss at $6.30 that'll be a $140 loss and I'm comfortable with that so let's see where it goes from here guys. My stop loss here is about to hit. Markets are coming down from the highs. We're going to do market. I'm going to go ahead and get out here. Sold out at $6.31 just wasn't my trade. I lost $133 but I live to see another day. That's what it's about. What's up everybody this is Giovanni from the options trading channel. Two very valuable lessons to be learned today. First in order for my strategy to work in my favor the odds of my favor I should be trading with two contracts. Go with the plan selling a half one at 10% gains selling the second half for bigger gains. It would have worked beautifully with today's gap up had I kept or had I traded with two contracts. Second of all the psychology of trading. The main reason why I don't use stop losses is because of today. Had I actually stayed in that trade and not put myself at a given myself a stop loss I would have had I would have made money I would actually hit my 10% target for half of my position one and then the other half heck they're still up they went well beyond my 10% target but two very valuable lessons. It's going to be interesting moving forward because my account is just shy of $1300 and I'm starting to not be able to afford two contracts but I think that I have an amazing strategy I just have to let my motions just I can't trade with my emotions. If I lose I lose big hey so be it I can fund my account with more money but for the here now let's just keep trading the $1300 and move forward let's see if I can bring that back up to $1800 and beyond so I'm only really down just under just over $500 since my big loss that in itself was pretty big but no worries I'm still here I'm alive I love my strategy I think I have an amazing strategy again I just have to control my emotions stick with the plan that's the hardest part about trading sticking with the plan letting your motions there's no room for emotional trading emotional decision let the math work itself out guys thank you everybody so much for watching I greatly appreciate your love and support see you here again on the next trading video hoping that it's a green trade for once thank you so much everybody for watching