I wonder how his p/l would be different if this were a day trading journal. Good luck in your trading.
Why are you touting this stock? How much of a position do you have to unload? I can see it spiked at the close on Friday. Was that you taking your position?
Neke, I am looking to trade option in the future someday... FWLT was a slam-dunk trade from the low 100's to under 90.. I traded it for 10 points.. out early as usual. The bounce of the markets as a whole was also quite predictable.. trendline and year lows (see attachment). My question.. Knowing this, could you have done a lot better overall or are there certain nuances of options that can rob you even in sure trades? I promise not to hijack your thread... just that last week was my best week in a long time trading stocks only and I keep thinking.. if I can do this well in stocks options should be even better??
Underfollowed. Company is a cash flow king and they are buying back stock. The stock is hugely short so possible squeeze. Earnings projections are strong. Balance sheet is decent. They are doing something unique and not done before. Kind of like finding a possible franchise before it goes big.
I could have done much better. The earlier losses in the week ate up most if the gains. FWLT did not do as well as some of the other stocks in my shortlist on the bounce. AAPL, RIMM, MA which were also on my shortlist could have handed better gains, with lesser bid/ask spreads. I picked on FWLT because it was down like 9pts at the time, seemed to have bottomed before the rest of the market. If you have the guts, playing options on short-term set-ups like that can be very profitable. As you know, timing and money management is very key for options: you cannot commit all your money to option positions at the same time like you can do for stocks. And of course you need to pay attention to the bid-ask spread, relative to the stock price; this adds significantly to the cost of a trade.
"Underfollowed. Company is a cash flow king and they are buying back stock. " Most of the time when company announce buy back they are saying we are out of any good Idea and we are dumb so we are buying our share back. I think only exception is in a bear market it will make sense to buy back, although I think even in those time buying other companies cheaper make more sense. Have you ever heard Berkshire ever bought back there shares? Or even a stock split. These are manipulation to take pressure of from the stock. In longer term stock trade on fundamentals and in short term on herd mentality or psychology.