Trade 90 Adding To A Winning Position

Firstly, Trade 89 a recap:

We were long 7700 @47.5, short 7800@ 18.5, sell 7850@11 x2, = debit 7. (CALLS)

Currently I think we’re looking at a value of about 10. So,one could argue this trade has made a reasonable profit, in the short term. We are here to run this though, and want to get at least a fair chunk of that 7700/7800 call spread. I have my own personal views on this, as getting 100% profit is almost always improbable, but getting around 50% is, in my book, very acceptable. Each to their own-these are not rules,but personal guidelines.

When What You are Already Doing is Working

Ever heard that expression? Keep on doing what you are doing? If it ain’t broke don’t fix it? Well here’s a classic opportunity to do precisely that. Damned if I do, damned if I don’t, I have to take a trade. That is the mission of Optionsinvesting.co.uk. We set out to provide education,enlightenment,and a list of other seemingly important words. We have shown beyond ALL doubt that options trading can be very very profitable. More fun than a cash ISA, and way ahead of passive investing. You can choose to make it ‘gut wrenchingly’ risky, to managed risk, or limited risk guaranteed 100%. So, buckle up, and let’s get interesting with 20 days to August expiry.

Adding To a Winning Position

As Trade 89 is a plodder, we can buy into this again for a debit of 10.5. 7700 call is now 48.5, the 7800 is 18 and the 7850s are 10. Simple maths tell you this is now worth 10.5. So, what’s the logic here? I have, as a rubbish trader, rarely been able to bring myself to double up on a winning position. I’m sure if I’d ever had a mentor I’d be raking in at least a 6 digit income by now. Most of the trading education sites, books and videos etc tell us never to add to a losing position. With many of our strategies ‘losing’ is in the eye of the beholder- I’d double up on this trade if it were for a debit of 3.