Monday, November 19, 2012

Ok...let's review our AAPL trade:

600 Dec calls

Alerted last night to buy 1 contract

Low today was 3.75....say you got in at 4.00 because of hesitation....

You just made 100% on your 1 contract

$400 into $860....hit a hod of $8.95 = $895

If you sold at 100% you are now up +$400

If you are holding....what do you do?

I'd suggest setting a stop at $7.60

$1.00 less then close price.

Worst case you will still make $360 if your stop is triggered

Best case.....option keeps climbing and you keep moving up your stop......

This is not a weekly so I am holding mine......stop in place......

sdh

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