152 views
I should let one of these run longer, but updating to the next trade on same rules:
This exercise is still about removing emotion and just following a set of rules.
3 - $1.18 WFC $26.5 calls for 8/28
Rules:
1. No earnings plays ( WFC post earnings )
2. No increasing/averaging down, use a stop loss of 20-30%
3. Charting based on triangles/ wedges and SMAs (10/20 crossover for this one, with the 10 day actually rising not 20 day decreasing)
4. At the money/near the money (check)
5. Risk/reward 1/3 or greater (If a move tests the 50 day, that's a $38-39 PT which would be well above range)
6. Buy 45 days out approx.
7. After the first week, get out and reassess if it still hits all these criteria (plan on holding longer than the previous two trades)
Trade 1: BA call $250 to $480 ($130 net)
Trade 2: ARMK call $435 to 435 ($0 net - still $480 principal)
Trade 3: MGM call $435 to $315 ( -$120 - $360 principal)
Trade 4: WFC call $354 to ... ( )
This exercise is still about removing emotion and just following a set of rules.
3 - $1.18 WFC $26.5 calls for 8/28
Rules:
1. No earnings plays ( WFC post earnings )
2. No increasing/averaging down, use a stop loss of 20-30%
3. Charting based on triangles/ wedges and SMAs (10/20 crossover for this one, with the 10 day actually rising not 20 day decreasing)
4. At the money/near the money (check)
5. Risk/reward 1/3 or greater (If a move tests the 50 day, that's a $38-39 PT which would be well above range)
6. Buy 45 days out approx.
7. After the first week, get out and reassess if it still hits all these criteria (plan on holding longer than the previous two trades)
Trade 1: BA call $250 to $480 ($130 net)
Trade 2: ARMK call $435 to 435 ($0 net - still $480 principal)
Trade 3: MGM call $435 to $315 ( -$120 - $360 principal)
Trade 4: WFC call $354 to ... ( )
Comment:
Going to be patient and let this run one more week. On the side i'm also recycling 7/31 calls which is proving much quick profits, but more risk.
Comment:
Alright, general update on this plan. Had to close our due to the rules, hit 20-30% loss. Exited at $0.85 or $255, technically now with $259 principal from the starting $250. Going to review the rules, see if I refine any and move forward. Looking to complete 10 total trades with these rules.