So what do you do when your trade immediately goes the wrong way?
– Before we make a trade what do we need to plan for?
o What is your confidence in the fundamentals of the
stock/company?
o Understand that in a trend, stocks don’t always go straight up.
o Because of the above we need to plan for our exit price, need to
have enough time (looking at a 2 week bounce, you need
several months in an option contract), Strongly consider a
hedging option.
– Any time you have a stock run up 10% you have that 8.33% herd
profit taking mentality kick in.
– Look further out
META – Look to maybe add a bull call spread of 310 long call/ 330
short call out to January monthly expiration.
Trade Findings and Adjustments 11-02-23
So what do you do when your trade immediately goes the wrong way?
– Before we make a trade what do we need to plan for?
o What is your confidence in the fundamentals of the
stock/company?
o Understand that in a trend, stocks don’t always go straight up.
o Because of the above we need to plan for our exit price, need to
have enough time (looking at a 2 week bounce, you need
several months in an option contract), Strongly consider a
hedging option.
– Any time you have a stock run up 10% you have that 8.33% herd
profit taking mentality kick in.
– Look further out
META – Look to maybe add a bull call spread of 310 long call/ 330
short call out to January monthly expiration.
