If my delta1 trades weren’t working so smoothly I would’ve liquidated my ZOOMFLY today. Flies can go from a wash to realizing profits so quickly. Once again spot is testing my lower wing ($360). Today’s price action is almost EXACTLY what I needed to happen to save this from washing. The volume that accommodated the move is also a tell tale, ZOOM wants to go up a bit more (hopefully). Most likely will exit tomorrow. Fly is currently quoted at $3.20
huh? first off, volume wasn’t average, in fact it was the opposite. secondly, you don’t need to trade a fly, you can do any combo you want
It is so hard to know how far a run will go without a meaningful correction. This is the power of scaling. Scaling strategies could be weighted towards statistics on historical data or by one’s assessment of trade quality, where perhaps a new and particularly compelling fundamental development would have a different scale out strategy than a purely technical based trade, for example.
When I go long a stock I always have a hard time deciding when to sell. Looking at the options chains in this one I see in the 156 DTE to the $7.50 call is trading for $0.20. If I buy the shares at say $1.36 my basis is now $1.16 and I can use the 156 day window as an opportunity for it to run. I'm it ends up called away at $7.50 a share in 156 days I'm happy with that outcome and made a good return. Example I bought RIG a few months ago below $1 and shorted the $3 call against it on a monthly basis. I've sold that call three times now and it looks like this week it might finally get called away but It's been a nice profit.
interesting! I was also long $RIG from 0.80c, one of my best trades last year! But didn’t even think to sell a call against it! I’ll look into this