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Sep 19

full time trader log 2012 09 19

full time traderUnderlying Stock : NFLX

Strike : 55 Call

No. of contracts : 6 contracts

Enter/exit price : 1.55/1.75

Holding time : 7 mins

Net Profit : $113

 

 

full time traderReason to enter trade:

I always blog about point of entry on my day trading, let’s talk about exit point today. I exited when my profit target was met while NFLX was on a uptrend at 9:48am. The options price held almost steady after that at the region of $1.80. I could have held on, but targets in my trading plan for the day was met. This time, I controlled my emotion and stuck with my trading plan. In addition, I knew there would an announcement looming at 10am. I didn’t want to hold past 10am as I knew it would be a gamble on the outcome of the announcement. Furthermore, the spread of the options prices tend to be huge right before the announcement. About 10-20 seconds before 10am, the bid/ask price was 1.80/2.00. Of course, the economic data that came out exceeded market expectations and market just shot up, as did NFLX and its options price was high at $2.18, that’s easily $180 opportunity gain lost! I could have banged myself for not letting profit to run, but I felt I made the right decision to take profit and stuck to my trading plan! Amateur is as amateur does, huh? Humour me….

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