Fall Break

Both my children are out for Fall Break all this week. So, some of my time trading will be even further limited on top of my other commitments. Hopefully providing 17 charts this evening gives at least some effort that I am still trading and putting in some efforts here.

Anyway, happy trading and as I can, I will post.
2 Responses
  1. Allan Says:

    Hi Doris...
    I thought you absolutely killed on RIMM. imho, you might consider just limiting yourself to calls and/or puts. Start off with 1/2 position with tight stop. If trade going your way, put in the other 1/2...and loosen up initial stop. By getting into strangles, straddles, etc, your profit is compromised. Your due diligence is impeccable to have it negated by using an inefficient trading play. This is why I feel you should play one way to get more bang from your $$$. Your preparation to trade deserves a little better.
    Hope that makes sense. :-)
    Also, remember i mentioned BZP for your kids and/or IRA? My father-in-law gave me that one. He loaded up when it was a dollar and change...and was called BZIP. There are other ways to be profitable in stocks besides playing options. In most cases it's who you know...instead of what you know. :-)
    Have a great week and enjoy those beautiful kids!!!

  2. Doris Says:

    Hi Allan,

    Thanks for your inputs. It cost me $1.98 to get into my strangle. If I had waited until after earnings to get in and take one side, it would've cost me around $1.75-1.80 to get into the trade.

    I was not able to monitor my trade on Friday as I was away from the computer all of trading hours. So, it did cost me about $0.18-0.23 MORE to do the strangle.

    My play still looks good and I plan on staying in it as long as it continues to be bullish.

    Right now, my position is up 56%, which I still think is really good. Of course 500% would be better, but 56% is nothing to scoff at either. If I waited it would've been around a 69% profit.

    So, yes, it would've been better had I just took a direction instead of doing a strangle. But 13% when I couldn't watch the market I think is well worth giving up.

    I would not have known from the price chart what RIMM would've done, make $23 move to the upside from where it was last Monday when I got in.

    I could've gotten in for $100, $105, or $110, but frankly, I didn't want to risk that much money. $1.98 seemed very reasonable for a strangle. I wouldn't have made tens of thousands of dollars, but if the whole position went south, it wouldn't have mattered as much.

    Thanks regarding the BZP. I don't really tend to do real well with low priced stocks, but maybe I'll reconsider.

    Thanks for the inputs. Keep them coming!!

Amazon Store