So the fed dropped the interest rate 0.5%, and? As usual it will probably take a few days for the markets to decide what to do with this. Overall the market indicators I've seen have been biased to the bullish side. Global market's reactions overnight will have a strong effect on how the US markets open in the morning.
New Play
RIMM Mar 35P/60C Nothing special here, just a stock that I like playing strangles on because it never sits still. Legging in using +/- $0.50 move on the stock.
Today's Activity
Sold AAPL 110C - 1 contract for $13.25, a net profit of $184.10 (13.83%) in 1 day!
I'm still not 100% sure how my broker works some of the more advanced order types. I tried using a trail-stop-limit order, but watching it first thing this morning it wasn't working quite how I expected :-/. I'll have to do some more research, because rather than sliding up with the call price it looked like it was staying steady. Not a huge deal as I still harvested a very nice 1 day profit. It's just frustrating sometimes when something simple screws me out of some profit.
Update
I'm really starting to see the effect of having a smaller trading account. My larger account has the SLB strangle that is "stuck" right now, but there is enough capital that I can keep making other trades around it. So I don't feel the losses from SLB as much. My smaller account has both FDX and AMZN that are "stuck" and that's it. I don't have the capital to work other trades while they move far enough to get me out with a profit. It's getting kind of frustrating not being able to make any progress in that account while the other one is going gang-busters. Patience is the key though, it's when I get in a pinch and start making stupid decisions that I get burned.
I'm all for trying to leg out of one or other of the strangles, but I'm going to have to find a good turning point on a day that I can execute at least part of the trade and then setup orders to babysit the rest. My problem is that there are not complex enough order types to setup the whole trade, and cover the exits, without some manual intervention in the middle.
What is a Guaranteed Investment Fund (GIF)?
13 years ago







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