This Month I will only be entering a primary trade.
As the Primary trade, this is aligned to the larger market direction and is deemed less risky. I'm bullish inclined for JETS as it is considered one of the COVID19 recovery sectors. The strike is also at a resistance point of the range. Entering at 0.3 would have been my preference but I was too late to get that price as I was wrapped in the previous JETS trade.
I need another JETS as I'm over-reliant on this for the past 1 year.
Sold 365 Puts @ 0.23 Strike 24 BP Block: 94K Max Gain: Est $8,395 Touch Probability: 29% % Distance to Strike: 14%
Wish me luck!
Trade closed: target reached
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Comment
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I forgot to update that Thinkorswim flagged my single trade as risky probably due to the spike in PNR and EPR. This is even though the price was so far away from the strike and I had adequate BP. They closed 1/2 my positions...
To be safe, in the future I will diversify my buys and not have a single counter risk.
In terms of taking profit, what % of profit would you close the trade at, assuming you don't make the entire $8395? Do you have a specific stop loss when you'd close the trade? Just curious.
Ronin_trader
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@Just_PIP_it, for my Stop Loss as long as the price action has become bullish and is within my one month risk/earn amount I will close it. As I define my trades monthly, so I need to make sure each loss will not extend beyond the max value I can make in that month.