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 
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