New Trades

Would like some comments on these new trades I put on.

Sold SLV DEC 29 Puts for 1.20
Sold SLB DEC 80 Puts for 1.05

Looking for the trend of both of these stocks to hold until half the premium is reached, then buy back.

Risk double Premium.

Thoughts are welcome.

Will post results later

 

If you're right, u make money, if wrong u lose.

 

TheoHornsby

Your insight to the markets is mind boggling. please tell me more.

I am looking for more comments about the stock selection and my profit and stop loss, are they to big to little.

I am sure this community has more insight that what TheoHornsby has stated.

Brad

 

Nice .

Just be sensitive SLV can correct more than 5% in a day in light of its recent bullish price movemnt .

.

 

I hope you are not late to the party on these.

Do you use a take profit order?

 

Have you thought about the correlation between those two trades ?

 

the brilliance of my thoughts dazzles many

 

Stopped out on both of these trades. did not hit my exit profit target.

To answer your questions. the only correlation that I see is that they are both commodities. one metal related and one oil related. they trade with counter to the US dollar.

On to the next one.

Thanks all for commenting.

 

BradR,

Just looking at the SLB trade, I don't quite understand something or maybe the numbers I'm seeing aren't correct.

You mention you were stopped out, but your org. post says you were going to risk double premium. According to OptionsXpress, the high for that option was $147 on the 8th. Did you just decide to close it early? Because otherwise, it hadn't gone against you that much since you sold it for $105.

Also, on the 7th, it shows a low of $41, and I realize the stock fell back quickly after opening higher that day. You mention you were going to buy back if the premium was half, like it was here, but maybe it wasn't that low for very long at all?

Also, I don't know in this case if the credit received would have been enough, but you could consider doing spreads as well. For example if you sold the 80 put, bought the 75 put. Then, maybe you wouldn't have to have been so concerned about a small loss having built up on the 8th because the 75 put protects you somewhat. Even though you could still lose a fair amount, it protects against complete disaster like if it opened at $40 one day or something. So, I guess what I'm trying to say is you might have more ability in this case to hold on if the stock temp. dipped below 80, etc.

It just seems a shame that the stock is back to where it was, but you lost money selling the puts because of a slight short term movement.

JJacksET4