Hurley Investments, LLC
230 West Towne Ridge Pkwy, Suite 475, Sandy, Utah 84070
(888) 287-1030 FAX (801) 820-3180
A Registered Investment Adviser
Trade Findings or Adjustments
Value of a dollar
$1.00 + 50% = $1.50
$1.50 on yr 2 loses 50% = $0.75
$.75 on yr 3 makes 50% = $1.13
$1.13 on yr 4 loses 50% = $.57
After 4 years you are down 43% on a return that averages 0% growth over that time period
ANY trade you look at to place or adjust you MUST work out the risk in the trade !!!!
$8538/27468= 31% ROI Annualize 31%* 12 months = 373% Annualized return
MY trade is post earnings trade on DIS
DIS had great earnings, currently bullish and lost $2.00 in after market gains due to the guidance Q&A session after their earnings
Really Like the $1.00 Credit for $2000 of risk
One reward = $1000 for $2000 of risk or 2 risks
So it is a 8 trading day 10 day total days in the trade
I would be fine exiting with a $500 to $700 profit on Friday or Monday morning
$112.03 is my break even point where at Expiration I would be flat minus commissions
To be safe I will probably place this trade after the first hour
Why? To allow the e-minis to clear out and to allow the market to accept a direction oon both DIS and the indexes
Adjustment Expectation – After filled set a stop loss at $500 or $0.50 a contract
I also could take assignment as an adjustment strategy
Assignment of the short put would mean a 112K to fulfill the short put obligation
IF you are willing to take assignment you close the long put on Friday monthly expiration for any premium left in the position!!!!
A third adjustment would be to add an additional longer term long put
www.hurleyinvestments.com www.myhurleyinvestment.com www.KevinMhurley.com
