Trading the BAC is still ongoing we purchased stock at average 7.62 (1765 units) also sold July 7 Put for 65 cent (10 contracts) totalling intake of $650:00 Bought back Put contracts at 11 cent today making a profit of 87% Bought protection Put strike at 8$ for 89 cent (3 contracts) intended to buy more when price falls enough! (Current loss) making at 37 cent (Bought for 84 cent)but trade is in effect a free trade as profits from stock put sale netted over $500:00 earlier on in the month I got lazy and did not take profits off the table and went on to lose all of the profit. I also neglected to put on a protective put to cover an open call position and ran out of time to regain the profit so current overall position is a net loss of approx $786:00 but I am confident I will emerge with a profit by end of the week.
Up date after closing bell!
As of closing bell today’s net profit is $636.25 plus profit from sale and buyback of 7 put approx $500.00 = $1136.00 profit for today ,Not bad !
Please note I often go days or even weeks without been in the market or trading as the market must present an opportunity and I often need a few days to set up a trade. It is also necessary to enter a trade with a loss to start with because the cost of our protection is often too high and you need to average in as it were .The market doesn’t always go in the one direction so you must always be hedged!!My personal Current view is that BAC heading up to 9.60ish, But I will average in on my protection just in case I’m wrong and that way I still will Be “right” Get it?
Good trading until the next time!