Trade Findings and Adjustments 04-25-2019

Trade Findings and Adjustments 04-25-2019

OK two things I want to go over today and neither put me in a good mood!!

Let’s first start out with “trading rules”

 For the most part = trading rules are for those who can’t seem to think for themselves, want to be lead around by the nose and always want to blame something else on their bad trading results !!!

The market is an ever changing, ever moving, volatile beast!!!!

The collar trade is the only finite rule based trade that works every time but has not timeframe

Simple rules/suggestions that are bendable like:

I don’t like to trade the first hour the markets are open

For a credit spread 30< or less

For a debit spread 60 days or more

Here are some that have cost people dearly:

20% return OR let the trade run

NOT a repeatable process

The work Rule indicates Always

Second let’s start out with what “I’m” Doing and why!!!

    Earnings and there are time stock ownership is important when you just aren’t sure

MU BTO shares and $43.45

BTO Long May 31-19 PUT @ 43.50 strike $2.00

New Cost basis $45.45

New risk $1.95 = 45.45 – 43.50 rt to sell

To lower the risk even more

STO a $47.50 May-31-19 Short call for $0.60

Over risk in trade $1.95 – 0.60 covered call credit= $1.25 or 2.78% Risk on TIC

Max return w/out adjusting 47.50 – 44.80= $2.70 or 6% ROI                     

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