How did I do? ( QQQ July $62 Put)

C

cnfuzzd

Hi all

Yesterday morning, after a couple days deliberation I pulled the trigger and bought 5 contracts of the above for an average price of $2.24. I have been watching it since then with an increasingly relieved feeling, bordering on smugness. However, results-oriented thinking will only get me busted, so I wanted a quick check. How was this? It seemed like an easy move, particularly considered as just a hedge for the stocks I am holding. Was it the right move? Should I have made it earlier? Anything to do differently?

fwiw, I am pretty sure that it is a fairly simplistic, vanilla way to go, but as I am a fairly simple person, it seemed ideal :)

thanks!

John
 
Quote from qqqoptions:

I would have bought the June options instead. I think 2 months is too far out and you end up paying too much premium.



:)
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I almost made the same decision. While I thought the move was going to happen soon, I wanted to make sure I had enough time to let the magic happen and not trying to run counter to time-decay. I had looked at August, July, and June. June "felt" too near, and the additional cost of the time-premium for the August contracts seemed to expensive compared to return, so I settled on July. How do you adjudicate this decision?

Thanks!

John
 
Quote from cnfuzzd:

I almost made the same decision. While I thought the move was going to happen soon, I wanted to make sure I had enough time to let the magic happen and not trying to run counter to time-decay. I had looked at August, July, and June. June "felt" too near, and the additional cost of the time-premium for the August contracts seemed to expensive compared to return, so I settled on July. How do you adjudicate this decision?

Thanks!

John
More...


It's a good decision based on your needs.


:)
 
Quote from cnfuzzd:

Hi all

Yesterday morning, after a couple days deliberation I pulled the trigger and bought 5 contracts of the above for an average price of $2.24. I have been watching it since then with an increasingly relieved feeling, bordering on smugness. However, results-oriented thinking will only get me busted, so I wanted a quick check. How was this? It seemed like an easy move, particularly considered as just a hedge for the stocks I am holding. Was it the right move? Should I have made it earlier? Anything to do differently?

fwiw, I am pretty sure that it is a fairly simplistic, vanilla way to go, but as I am a fairly simple person, it seemed ideal :)

thanks!

John
More...

looks like a good trade, as you say simple is good, also it is smart to go for extra time if you think the additional cost is reasonable.
do you have a trade management, exit strategy?
 
Quote from traderlux:

looks like a good trade, as you say simple is good, also it is smart to go for extra time if you think the additional cost is reasonable.
do you have a trade management, exit strategy?
More...

Yes, but not a very good one.?.?.?

Honestly, I am definitely trying to accumulate dollars in this account as I have been allocated a certain amount by Mrs. cnfuzzd (she loves that name) and its not a lot. I will probably be to cognizant of preserving my gains (up around 45%) as this seems to be one of those gifts given by the market to lure in the unwary and give unwarranted confidence to the ignorant, which means I should definitely accept it.

I would probably get alarmed if I saw some increasing volume with a positive close, and think it may bounce off 60 (i don't pretend thats a reasonable guess, i just like to articulate using specific numbers to try to keep myself accountable). Breaking through 60 seems like it could indicate a much more significant fall, but then I know virtually nothing about TA other than the two books I have read/am reading. With that in mind, I will most likely get spooked at some point and book some profit.

I am such a newb....

Thanks!

John
 
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