I have still debating between two ideas:
1. Selling one at b/e outright while holding the other for more profit
2. Write 1 call options for a few hundred $$ profit while holding the other for more profit.
I'd like to get Jul 2.75 calls for $2500 or more, but I don't see much inflation in calls yet, which is probably good if options you're holding is well in the money and you want to swap it with a lower cost option since premiums are low.
I think buyers are still cautious and a lot people are still betting on shorts, which is maybe why we're going up. Now once buyers start coming in, we'll see inflation of calls, gap up of 4-5% overnight, $3000+ moves etc easily...
Today's move is very nice. I'm wondering if we'll close strong or just fade out. There are stops sitting around 2.6, so the logical area to go right now is 2.6 and up. Huge stops sitting above 3, which is the game changer in my opinion and that's what I'm aiming at....
PS. In 20/20, I'm kicking myself why I didn't buy at 2 and why I didn't add when it pulled back to 2.4... This explains why I'm not a good trader.
2 comments:
I just sold my UNG Jan 2013 $14 calls at $6.20. Bought 20 contracts at $2.75 avg. Got $6,900 bit back from the $9k loss on the UNG stock. I rolled my contracts over to the Jan 2013 $18 calls priced at $3.75. I just have 10 contracts now...gonna look to get the full 20 contracts over the next few days.
Good deal, man. I was about 0.05 away from my break-even on Friday, but seems as if we're heading down today. We're way due for a pullback, but I just wish we had a one nice up day before pulling back.
I'm wondering how much it'll go down before it starts going back up, in which the best case is to make a higher higher (hopefully not a lower high). Just like you're I think it's a good time to add and I'm looking at it myself as well.
I have one order to exit at 2.85 level based on the June contract which expires this Friday.
I'm back to a sit mode.
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