Friday, April 13, 2012

3108.02 $RL winning trade w/position management details

TRADE UPDATE: This credit call spread last trade is 4/20 and it looks almost certain to expire worthless for max profit.


LESSON: I followed a stock closely; made a trade then repeated a winning trade using similar metrics (distance from price to strike; time periods, etc.) twice. Also important to note that Price encroached at my 185 short call strike but my conviction had not changed so I stuck with it. If I had bigger gonads I could have added to my position but I didn't want to press my luck.

*** For my efforts, I collected a total of 3,108.02

NOTE: I will not be playing the earnings on this one. If I can confirm earnings date being 5/23ish then I will place a similar May trade next week.

*** 3/7: I closed a sure winner (the 2/9 trade below) and reopened the same position for April.
I again sold a credit call spread April 185/190.
Price was 171.65
I did this 12x and collected $886.6

*** 2/9: I shorted the stock after HUGE earnings pop (I waited few days though before putting it on)
Credit call spread 185/190 for .78
I did this 11times and collected $842.42

*** 12/5: I sold  RL Jan iron condor for $1.4 credit.
I did this 10times and collected $1,379.00.
Stock Price was $149.92; strikes were 130/25 - 165/170

Btw, if you like these posts spread the word+ folo @racernic (twitter and stocktwits). Also peruse rest of my posts including the sides to help finance the java (if you know what I mean ;-). I do these post for free and have no subscription pitches etc.


Conviction is very important BUT more important that we don't blur the line between conviction and hardheadedness. How can I tell the difference? If I've never admitted I was wrong then It's likely to be hardheadedness ;-) 

MY TWEETS AND POSTS ARE REAL TRADES WITH REAL PROFITS AND REAL LOSSES. NO PAPER TRADING HERE! I HAVE A FEW INTERESTING TRADES POSTED.

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As with any trade there are risks but in this case the I am very comfortable with the dollars at risk. I always try to know and manage my risk; I ask 'what will I lose if the crap hit the fan in the worst possible way.' If I know the answer to this and am ok with it then I should be ok.

THIS IS NOT A RECOMMENDATION OF ANY KIND. I ONLY INVEST MONEY I CAN AFFORD TO LOSE.

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