help a ETer out
- Thread starter itcanbedone
- Start date
itcanbedone,
I have not read the entire thread so I apologize if this is misplaced, but, you mentioned LVS so I'm assuming that's the stock in question.
How I would approach this one is by placing an 11 ema on the chart and watch for a CLOSE below it. Seeing that you are not daytrading it and have underwent some volatility and okay with that, the 11 ema has been it's floor for almost a month now and a close below it tells me that the probabilities of it dropping below this point are high that it will fall further. How far it falls from this point is the question as it could only be as low as a point or two.
Hope this ads to your ponder.
Treat it like a new trade.
At this point in time would you get in, get out or stand side?
If you would get in how much would you put at risk?
If you would get out or stand aside then cash in your winnings.
You should know how you will exit a trade before you enter. Emotions run pretty high once you have your money committed.
Quote from Topper:
itcanbedone,
I have not read the entire thread so I apologize if this is misplaced, but, you mentioned LVS so I'm assuming that's the stock in question.
How I would approach this one is by placing an 11 ema on the chart and watch for a CLOSE below it. Seeing that you are not daytrading it and have underwent some volatility and okay with that, the 11 ema has been it's floor for almost a month now and a close below it tells me that the probabilities of it dropping below this point are high that it will fall further. How far it falls from this point is the question as it could only be as low as a point or two.
Hope this ads to your ponder.
...still holding...
You've received a number of suggestions, some good, some bad. What you should do depends on your risk/reward aka fear/greed.
Under all scenarios, I would remove risk. How you do that depends on your objectives/tolerance.
Neutral to bearish is easy. Close the position.
Buying protective puts is a premium versus deductible issue. The more protection you want the greater the cost. Bear in mind that the loss potential is put premium plus distance to strike, assuming they're out of the money.
Don't like the put cost? Mildly bullish? Collar the position for little to no cost, possibly even a small credit. Lock in your gains. With a collar, I'd also trade some of the underlying intraday, restoring the collar by 4 PM (sell shares on down moves, then buy them back).
Though it's a bit esoteric, a collar is synthetically equal to a vertical spread so for an extra commission, you could take most of the money off the table by selling the shares and buying a vertical.
Very bullish and don't like the upside limit of the collar? Sell shares, buy mid to long term calls, even LEAPS.
Stop loss orders are nice on paper but w/o puts, they're a problem if there's a gap down.
Whatever you choose, live with the details. Don't whine about option cost, lost opportunity, woulda-coulda-shoulda.
Book the profits.
Protect your Cities!
Under all scenarios, I would remove risk. How you do that depends on your objectives/tolerance.
Neutral to bearish is easy. Close the position.
Buying protective puts is a premium versus deductible issue. The more protection you want the greater the cost. Bear in mind that the loss potential is put premium plus distance to strike, assuming they're out of the money.
Don't like the put cost? Mildly bullish? Collar the position for little to no cost, possibly even a small credit. Lock in your gains. With a collar, I'd also trade some of the underlying intraday, restoring the collar by 4 PM (sell shares on down moves, then buy them back).
Though it's a bit esoteric, a collar is synthetically equal to a vertical spread so for an extra commission, you could take most of the money off the table by selling the shares and buying a vertical.
Very bullish and don't like the upside limit of the collar? Sell shares, buy mid to long term calls, even LEAPS.
Stop loss orders are nice on paper but w/o puts, they're a problem if there's a gap down.
Whatever you choose, live with the details. Don't whine about option cost, lost opportunity, woulda-coulda-shoulda.
Book the profits.
Protect your Cities!
Quote from ForexForex:
1 year chart looks very bullish, and I see why you don't want to exit. How about using a trailing stop on the entire position and maybe sell some OTM puts.
Lets try a paper trade and see how it does:
SELL LVS Sep 2009 12.5000 put @ $0.50
http://finance.yahoo.com/q?s=LJJUV.X
Just thought I would bump my post. Trade is looking OK.
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Am I the only one who thinks that if you've earned 400k through stocks then you should bloody well just go ahead and spend it instead of trying to make more?
Unless you've got something crazy planned like me you should start planning on what house to buy and scare the crap out of the housing agent by giving them a check instead of credit
Unless you've got something crazy planned like me you should start planning on what house to buy and scare the crap out of the housing agent by giving them a check instead of credit
Take out your initial money once you have doubled your original buy in.
Its a long journey and this helps for the rainy day. If the rainy day never comes, you are one lucky SOB.
Its a long journey and this helps for the rainy day. If the rainy day never comes, you are one lucky SOB.
Absolutely 100% agree. The fact that you are coming on here asking questions about how to trade and how to exit a position tells me two things:
1. You don't have a trading plan.
2. You are not even remotely ready to trade real money.
The answer to your question is: sell everything, go to cash, and trade on a demo until you know exactly what you are doing. You will know what you are doing when you stop asking questions on this forum, when you have a trading plan that tells you how to enter and exit your positions.
And if you don't want to do this... then on behalf of all profitable traders, I thank you for your money.