by Trader | May 17, 2023 | Journal
Last night SPY trading range was $410.25 to $412.19. That’s within the trade parameters of $408 to $413. Which could well net in a total profit of (300 + 800)=$800! However, the loss was $930!!! What went wrong? 1. Position size was too big The same problem...
by Trader | May 10, 2023 | Journal
Today morning looks like the perfect setup: Between 11.30am to 1.30am, market was falling in a sure manner. It could have been $350 of profits, $450 max. However, the day ended up with a total loss of $278. Not too bad, but what can be done better? Here’s a...
by Trader | May 6, 2023 | Journal
The collar trade is designed to be a long-term trade, usually more than 12 months expiration. Long-term calls have more time value compared to long-term puts. The more distant the expiration date, the larger is this different. Here’s an example of a collar...
by Trader | May 5, 2023 | Journal
Like the stock repair strategy, the stock enhancement strategy can be used to significantly enhance the return on a stock investment with no additional cost. Example 1 In early March, you buy 100 shares of ZZZ at the current price of $58. Target price is $75....
by Trader | May 4, 2023 | Journal
3 May 2023 should been a profitable trade. SPY dropped from 415 to 408, a whopping $7 change. SPY bear put credit spread at strikes 419/420 should have netted $300. QQQ bear put credit spread at strikes 326/327 should have netted $300. That should have been a total of...
by Trader | May 2, 2023 | Journal
Suppose we bought a good stock only to see it undergo a significant pullback in price. We still like the stock and feel that it will recover at least some of the ground that it lost. There is a low-cost option strategy that can help you get back to a break-even status...
