I closed the Apple trade when it took the big dump down. I sold the long puts for a big profit, and then when it jumped back up I bought back the short puts for much less. I know it was a total break of the trade discipline, but I made a lot of money. Other than the big margin calls, is there anything wrong with the way I did this?
Arthur, congratulations! Good trade that fortunately worked out for you! The only problem is that you would have had a very large risk if AAPL stock had continued to drop and you were naked the short put. Hopefully, you would have drawn some line in the sand to bail if it kept going lower. Also, you would have probably been hit with a massive margin call and would have been forced to meet it. So it worked out, but it was a risky move. Wish I had been brave enough to do the same. 😉
Dan or anyone else – what is or was the recommendation on the KBH trade? The covered call has expired. Sell the stock for a loss, hold on with the expectation it will move up, or write another covered call? Or, some other strategy?
In the previous update, Dan suggested selling our KBH stock once the option expired. At this point, you hold only the stock, so there’s no real hurry. You need to look at KBH as a stock and see how it looks looks a’s a trade from this level. Either you can sell now or place a stop under a recent support level in the hope the stock moves higher. Also, you can sell another covered call if you feel comfortable holding KBH long term. I’m in the same boat. I still have KBH and need to decide what to do. I haven’t figured it out yet! 😉
PBR has been working out well for me. I typically wait for Dan’s recommended buy point trade to drop a little more before I go for call options. Bought in at $2.73, sold out at $3.25 for an 18% gain in about 5 business days. Waiting for it to drop back down to $3.00 range or less, then will execute the same or a similar trade again. I know we’re supposed to hold on, but the market is just too volatile. As Dan says – protect your dough. I’d rather jump in and out than hang tight. Not sure if I’ll get another buy opportunity on PBR. Good call by Dan on this one.
DAN- I’m one of the people you talked about in the video. I’ve been working at this but not having much success yet, but I’m determined. I watch all of the videos on SMM and OMM. Haven’t been able to make it to any of your live events due to my work schedule. I’ve certainly learned a lot, but I’ve had good trades and bad. I’ve gotten better at not loosing the dough, but I’m down. I know- how can that be when the market has been on a rip for basically 2 years?
I closed the Apple trade when it took the big dump down. I sold the long puts for a big profit, and then when it jumped back up I bought back the short puts for much less. I know it was a total break of the trade discipline, but I made a lot of money. Other than the big margin calls, is there anything wrong with the way I did this?
Arthur, congratulations! Good trade that fortunately worked out for you! The only problem is that you would have had a very large risk if AAPL stock had continued to drop and you were naked the short put. Hopefully, you would have drawn some line in the sand to bail if it kept going lower. Also, you would have probably been hit with a massive margin call and would have been forced to meet it. So it worked out, but it was a risky move. Wish I had been brave enough to do the same. 😉
Dan or anyone else – what is or was the recommendation on the KBH trade? The covered call has expired. Sell the stock for a loss, hold on with the expectation it will move up, or write another covered call? Or, some other strategy?
In the previous update, Dan suggested selling our KBH stock once the option expired. At this point, you hold only the stock, so there’s no real hurry. You need to look at KBH as a stock and see how it looks looks a’s a trade from this level. Either you can sell now or place a stop under a recent support level in the hope the stock moves higher. Also, you can sell another covered call if you feel comfortable holding KBH long term. I’m in the same boat. I still have KBH and need to decide what to do. I haven’t figured it out yet! 😉
PBR has been working out well for me. I typically wait for Dan’s recommended buy point trade to drop a little more before I go for call options. Bought in at $2.73, sold out at $3.25 for an 18% gain in about 5 business days. Waiting for it to drop back down to $3.00 range or less, then will execute the same or a similar trade again. I know we’re supposed to hold on, but the market is just too volatile. As Dan says – protect your dough. I’d rather jump in and out than hang tight. Not sure if I’ll get another buy opportunity on PBR. Good call by Dan on this one.
DAN- I’m one of the people you talked about in the video. I’ve been working at this but not having much success yet, but I’m determined. I watch all of the videos on SMM and OMM. Haven’t been able to make it to any of your live events due to my work schedule. I’ve certainly learned a lot, but I’ve had good trades and bad. I’ve gotten better at not loosing the dough, but I’m down. I know- how can that be when the market has been on a rip for basically 2 years?