What should I do with this trade ?

T

traderwald

Hi guys,

I have sold the ES at 3022 and it is now trading at 3072. Should I close it now or hold for a week or so ? What do you guys think ?

Thank you
 
etrades said:
Hi guys,

I have sold the ES at 3022 and it is now trading at 3072. Should I close it now or hold for a week or so ?

Thank you
More...

I recommend my clients to have an exit strategy ( good and bad ) before entering the trade....

The answer to your question depends on your outlook, risk capital, account size etc.

If you are worried about another leg up, weekly mini SP500 calls could provide some protection rather than using a stop.....
Feel free to PM me or reach out to me directly and i can try to provide more tailored advise.
 
etrades said:
Hi guys,

I have sold the ES at 3022 and it is now trading at 3072. Should I close it now or hold for a week or so ? What do you guys think ?

Thank you
More...
You really should have bailed out sooner. But let's hope that 85 is the top for now. Luckily, the market isn't going up anymore and I feel we'll get a breather for the next few sessions. We might retrace down to the 50-ish. FYI There is a strong support at 3025-ish and, once we get there, there will be a strong bounce. So I strongly suggest you unload at 3025 if we do in fact go down that far. For the moment, place your stop at 88 and hope and pray that bull run is over.

Good luck.
 
Cannon_Trading said:
I recommend my clients to have an exit strategy ( good and bad ) before entering the trade....
More...
Yeah, but we're talking etrades here..... :(


SO! Whatcha gonna do, Ghostbuster? :wtf:

HINT: If you sell a 3025 put for December 20 (likely FUT expiration), you'll pocket $33, putting a nice dent in that $55pt hole, WHILE giving you the opportunity to exit with a $5 loss. (In other words, a possibility of a $28 gain, should the market go in the crapper.)

HOWSOMEEVER*, if you were to sell the 3025 strike two weeks out for $12, and then repeat that twice more{$36}, you'd have an extra $3 for your trouble, AND have the opportunity to move your strike around, should that seem advisable... Like 3025, pocket $12; then 3035, pocket $14; then 3045, pocket $20 -- getting more cash and closer strikes as you go. Every two weeks....

Work this out, etrades. Pen & paper. First. :wtf:

What you need is a reasonable expectation that you can raise that strike/cash faster than the market can raise it's mark, week after week after week (without fail). So! You need 12pts. What has the market average been?



* (That's a special gift for Mr. Gutless...) :D
 
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tommcginnis said:
Yeah, but we're talking etrades here..... :(


SO! Whatcha gonna do, Ghostbuster? :wtf:

HINT: If you sell a 3025 put for December 20 (likely FUT expiration), you'll pocket $33, putting a nice dent in that $55pt hole, WHILE giving you the opportunity to exit with a $5 loss. (In other words, a possibility of a $28 gain, should the market go in the crapper.)

HOWSOMEEVER*, if you were to sell the 3025 strike two weeks out for $12, and then repeat that twice more, you'd have an extra $3 for your trouble, AND have the opportunity to move your strike around, should that seem advisable... Like 3025, pocket $12; then 3035, pocket $14; then 3045, pocket $20 -- getting more cash and closer strikes as you go. Every two weeks....

Work this out, etrades. Pen & paper. First. :wtf:



* (That's a special gift for Mr. Gutless...) :D
More...

It is too bad you guys didn't give this advice before he was already $2,500 per contract in the hole. So I guess the real question here he is asking, should he stay or should he go now?

Is there a way for him to option his way out of this loss? I guess, look for some way to get a guaranteed $2,500 profit with options to offset his $2,500 loss in the current future position, by Dec 19th, when the future LTD date hits?
 
Cannon trading basically nailed it.

I'd like to point out that there's a component that deserved emphasis. If you're in the hole and panicking - get out. If you're in the DEC 19 it might not be a winning trade. Earnings are looking pretty good this season.

Calls are a good plan if you're not worried and just want to try to save some profit. Getting out is an even better plan if you're panicking. Nothing worse than throwing better money after good money after bad money.
 
tommcginnis said:
Yeah, but we're talking etrades here..... :(


SO! Whatcha gonna do, Ghostbuster? :wtf:

HINT: If you sell a 3025 put for December 20 (likely FUT expiration), you'll pocket $33, putting a nice dent in that $55pt hole, WHILE giving you the opportunity to exit with a $5 loss. (In other words, a possibility of a $28 gain, should the market go in the crapper.)

HOWSOMEEVER*, if you were to sell the 3025 strike two weeks out for $12, and then repeat that twice more{$36}, you'd have an extra $3 for your trouble, AND have the opportunity to move your strike around, should that seem advisable... Like 3025, pocket $12; then 3035, pocket $14; then 3045, pocket $20 -- getting more cash and closer strikes as you go. Every two weeks....

Work this out, etrades. Pen & paper. First. :wtf:

What you need is a reasonable expectation that you can raise that strike/cash faster than the market can raise it's mark, week after week after week (without fail). So! You need 12pts. What has the market average been?



* (That's a special gift for Mr. Gutless...) :D
More...

I've traded my way out of bad positions this way but to be honest, it's time consuming and stressful. Better to just take the loss as soon as your gut starts feeling weird.
 
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