Some Housekeeping First: Trade 73 Another Victory
For the record- Trade72 would still be underwater if we’d run as a straight strangle but next week might see some big downside. So our short 7150 calls will likely be a bit less juicy,and in our favour. Last week we ran through some adjustments,and we don’t have enough space to go through all the scenarios. Trade 73 however is another matter- a fabulous outcome after some ridiculous market action. The 7200 call is now 47,and the 7350s are 8. Remember we sold 3 of the 7350s for every one of the 7200s we bought. 47-23= 24,minus our original debit of 4= 20. That is a nice profit but not 500%-we needed margin too. I think we could book at least 25% profit based on capital employed however. Happy happy days.
This Week’s Crazy Action
WTF?????? What the flip? Why? Lost for words? We just laughed at the ridiculous market action. An up day of 2.4%? Hilarious. Whatever drives the market we love it. Up or down it is TRADEABLE, and for us that is all that matters. So, do we make predictions about the market? No, we take a position with our risk first and foremost in our minds. Then and only then will we consider the reward and its value relative to the risk. It works for us.
We have winning trades,some variable trades,tiny losses and we want to keep it that way. Our trade of the week is something special and it may be a disaster-we never learn if we only win. The holiday threw a dent in our schedules and this site is a labour of love, so keep with us. So, take baby steps with our trades, watch us stumble on occasion, learn how we place and exit trades. We are not experts, very far from it. We are regular guys who love our options trading, and enjoy the profits,derived from managed risk.