I guess it would depend on the market. Your HBC put was sold on a sell off day. Why not hold it longer? My AZO calls today is also on a potential rally day. Will I hold it longer? I think so, at least for a while as I have learned.
Thanks, well, I owe it to others. It looks like AZO is flying into space well above that $148.50 high. At my last check, I saw it at $157.10. I sold those 5 calls at $7.70 and my profit is $2,695.10. That has given me a gain of $30,066.95 now.
Ben, Do you mind explaining a little more on how you find your stocks? Such as are you using any sort of stock filter to find stocks with approaching earnings? I notice most of your stocks have a fairly high price tag, such as auto zone was in the $140's. Do you do this by design? You appear to play both directions, sometimes buying the calls other times buying the puts. What goes into your thinking process when deciding which direction you believe it will go? I understand a lot of this info you probably want to keep to yourself, but anything your willing to share would be appreciated. Good luck
Hey Ben, Inspiring journal. I'm an option newbie as well. Can you post your trades before the trading day ends??? I think I'll be more inspired. thanks
Well, I closed JOYG calls at $3.20. My gains for this trade was a nice $540.10. Sorry, not the stellar gains I made the past few days, but I used only $1,350 in capital to start with compared to $2,000-$3,000 I have been using lately. Ben
Here's my question to you, Ben. I observe the following: 1. You're a retail trader. 2. All your option plays are purely on the delta. I don't see you mentioning dynamic hedging, skew or anything of the sort. 3. You're diligent with your stops and can tolerate loss, which means that you're not interested in smoothing your payoffs. Given the above, why is it that you use options, instead of saving yourself some bid/offer and trading the underlying?