At the close the market was near unchanged. There was a push downward early and midday, then a strong close. So the what to do? This week has been a net positive for the accounts. I have been fortunate of late, however stressing on the exit for 2 hours only have the underlying go your way massively and getting out early is a bummer.
I wanted to sell into the GS rally of the past few days, and lighten up on MU prior to earnings.
The Wisdom of Napolean Hill
One of the greatest books ever written: Think and Grow Rich
GS – Exited 1 unit @ -11.15 (225.69 underlying). I wanted to take a little risk off the table while letting the rest run. Buy the end of the day the price was @ -9.85 (228 underlying). I left some on the table, but the cost averaging approach as the underlying is moving in my favor was the plan. The underlying has increased by 18 pts since I put on this bullish play. It did not get into the profit zone until today. Pretty wild. The VEGA has went down so much during the course of this trade, It was at breakeven for the past 10 pts. Now The play is looking great as a vacation trade. Let ‘er go. Unlimited profit potential from here to the middle of December.
MU – Exited 2 units11p @ 1.40. A small profit, before it ran like crazy into the close. I have 1 unit remaining. I wanted out to take ALL of my initial risk off the table going into earning tonight. I am there. I may re-enter this trade after the volatility drops, post-earnings, But now I can take advantage of a large jump.
UTHR – yesterday I put on 4 units 70p calendar @ .10. I have not been able to sell these for two days, but when I do it should be good.
FISV – 1 unit Nov/Dec 50p calendar for .30. If it breaks above its gap down high I will exit. But it is worth a stab.
I would love to exit a few of my calendar positions as I have been in some for 3 to 4 weeks (long for me). They are all looking pretty good. RHT20p and PDLI 20p calendars are on the edges of the Breakeven ranges.