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Jan 08

option trading log 2016 01 08 loss $5

options trading malaysiaUnderlying Stocks : TSLA & FB

Strike : 225 Call & 100 Call

No. of contracts : 3 & 8 contracts

Enter/exit price : 0.78/0.20 & 0.58/0.80

Holding time : overnight & 19 mins

Net Loss : $5 (TSLA loss $178, FB profit $173)

First trade of 2016, TSLA. Dow got battered following China’s circuit breaker loss. TSLA also got battered and thought it would rebound in the next session. Well, it didn’t! This is what you get for not following the signalling rules, trying to outsmart the market and out play the trend. Where did I put the idiom “Trend is your friend”?

Got back in roots today and play on fundamental. FB again got battered in the last session, and rose in pre-market. So, followed the trend and look for window of opportunity to trade up by going long on the call options. Sure I didn’t manage to buy at low and it was in my playbook to average the position; and I did before it rebounded. Took profit and ran!

At least the profit from FB covered by loss TSLA position. Phew…

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