I just received my property tax bill in the mail- I am going to pay it with the profits from my "sim" account! I agree, real money trades a LOT differently than sim money.
For myself, moving away from hard directional trading, but not going to neutral, I have been doing credit spreads, so this is a little bang trade. For my entry to the $1000 challenge consider, SPY @ $106.31, my outlook is bullish with caution. a SPY OCT 100/102 BULL PUT SPREAD @$0.34 vs $1.66 my trade plan is to sell 3 for $102 vs $498 so I have about $500 in reserve for any possible adjustments if SPY drops toward my sold strike (102) I may sell additonal spreads, or buy back the spread depending on how I view the move. trade has 4 wks of time
You have more guts than I do With the end of the quarter coming up & earnings reports starting to roll in? It is certainly far enough out of the money to be considered "safe" & any other time I would be comfortable with it. I'm sure it will work out though, I'm just a big pussy right now. Things seem a bit irrational for me. :eek:
wartrace, thanks for the reply, after I sent the post I thought I should have added that this is a more aggressive trade than i would normally do. I did one similar to this for SEP (97/99) and it worked out as a total win, even though it did move against me at one point. So I might be suffering from winners syndrome. I do agree about E/R being a concern.
It's probably a safe trade, I'm just a little on edge. I am not convinced this rally won't have a small correction sooner or later. I try to stick with index options myself. I've been burned before by the odd analyst upgrade individual stock options sometimes experience.
I traded whatever was moving substantially premarket. Definitely didn't focus on one issue. I focused on the pattern. Wilt
Did you already sell the options? How about selling the next strike lower & pocketing the credit? (Bear call spread) I haven't looked at the situation closely (prices & charts of rimm) but it's a thought. You might be able to salvage some of the loss? Sorry it didn't work for ya, I know the feeling.:eek: