Trade 5 - GOOS Call
Continuing this exercise after following TSLA for a few weeks, still about removing emotion and just following a set of rules.
5 - $0.17 GOOS $24 calls for 8/14
Rules:
1. No earnings plays ( GOOS post earnings )
2. No increasing/averaging down, use a stop loss of 20-30%
3. Charting based on triangles/ wedges and SMAs (sitting on all the SMAs, rising RSI, MACD ready to make a move)
4. At the money/near the money (check)
5. Risk/reward 1/3 or greater (same week so higher reward)
6. Buy 45 days out approx. (this on I'm not doing, trying same week but not risking whole principal)
7. After the first week, get out and reassess if it still hits all these criteria (will look for a move today or tomorrow moring)
Trade 1: BA call $250 to $480 ($130 net)
Trade 2: ARMK call $435 to 435 ($0 net - still $480 principal)
Trade 3: MGM call $435 to $315 ( -$120 - $360 principal)
Trade 4: WFC call $354 to $255 ( -$99 -$261 principal)
Trade 5: GOOS call $85 to ....
My question is, was this the best option on the table or just one I found. Probably could have scanned longer
5 - $0.17 GOOS $24 calls for 8/14
Rules:
1. No earnings plays ( GOOS post earnings )
2. No increasing/averaging down, use a stop loss of 20-30%
3. Charting based on triangles/ wedges and SMAs (sitting on all the SMAs, rising RSI, MACD ready to make a move)
4. At the money/near the money (check)
5. Risk/reward 1/3 or greater (same week so higher reward)
6. Buy 45 days out approx. (this on I'm not doing, trying same week but not risking whole principal)
7. After the first week, get out and reassess if it still hits all these criteria (will look for a move today or tomorrow moring)
Trade 1: BA call $250 to $480 ($130 net)
Trade 2: ARMK call $435 to 435 ($0 net - still $480 principal)
Trade 3: MGM call $435 to $315 ( -$120 - $360 principal)
Trade 4: WFC call $354 to $255 ( -$99 -$261 principal)
Trade 5: GOOS call $85 to ....
My question is, was this the best option on the table or just one I found. Probably could have scanned longer
Comment:
Very poor timing on the day to grab, but we'll see tomorrow. Looks like I should have kept searching for a more solid play
Comment:
Sold in the morning for $280 or $0.56 per, 329% return, i'll take that. $541 principal to the next trade