Booking profit while others may be buying.

I booked a profit of more than 100% in SLG trade that I shared yesterday. Here is another trade where I booked a 100% profit on call options in a day.

I am also explaining how I entered and managed the trade.


I was having a chat with my trading friend, a fine gentleman, Rick, today. And I mentioned to him why I took a long position in $STT yesterday. 

I am also sharing how I managed the trade today.

Why I bought STT?

1) Its industry was weak for a long time, and then it was starting to go up (2) with acceleration.

3) Yesterday it was up by 9.4%.

4) It pays a dividend of 3.4%.

5) Undervalued stock with (6) earnings growth - a start candidate for long.

7) STT gave a Breakout long setup yesterday during the day. It pulled back and closed just below the Memory resistance. I had already taken a long position using the CUE Fine Tune chart. Sometimes, I do not wait for the market close due to my timezone difference (that is not the CUE guideline).

8) Today it gapped up at the open.

9) I had more than 100% profit in the call options that I bought. I booked profit looking at the stock being unable to go above Early Range High (see next chart). I may not mind buying some stocks or call options if I get an optimal buy point. I also shorted some put options. Those are in a profit too - I am holding that as I am bullish on the stock, and time decay will help me. However, I am not going to let the short put options to turn into a loss. 

10) STT opened with a gap up. The CUE Fine Tune chart drew the automatic pivot levels. 

11) As price came below the Early Range Low, tried to recover, and then came down again, I had no reason to hold the full position. I booked at least a partial profit.

That is how I entered and managed the trade.

2 0 industry scorecard.jpg  3 0 fundamental.jpg  4 0 technical.jpg  4 1 technical.jpg 

Disclaimer: This site is for educational purposes only, explaining the use of CUE systems and techniques. It is not for trade advice. Trading involves risk. You and only you are solely responsible for the outcome of your trades.

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