Friday, March 16, 2012

$BWLD trade management

4/10 UPDATE: i can close the whole position for $.05 so i get to keep all but 887.35 i collected (less abt $55). I will likely close it tomorrow and make margin room.
Going forward with bwld: i won't put another trade until AFTER its earns which are 4/24 post (confirmed).
playing the earnings on stocks like this one is a coin flip and i am no good at gambling.

2/16: $BWLD had just popped a mountain and rubbed me the wrong way so I shorted it via selling call Mar spread 90/95.
I did this 10 times ($.75) collecting net $734.48.
3/12: Price 88.61 and approaching my 90 short call spread fast. Also, the pricing was looking ugly with regards having options to dance out of it without a loss.
So i decided to punt out of my March short position into April while it was still possible. I was convinced that the stock is over extended and doesn't deserve the price it has.
so on 3/12, I BTC my mar 90/95 short call spread and STO Apr 95/100 short call spread for net credit of 152.87. This is in addition to the premium i initially collected for the mar short.
3/16: bwld got downgraded so I feel good about my decision to stick with my short on this one.

The bottom line:
You don't always get the timing perfectly. But, as long as the thesis is still correct it is best to stick with it and reset if and when is necessary.

$AAPL $BWLD $bidu  $SPX $NDX $RUT $C $GS $wynn