Mindful Trader Commentary For August 26, 2021


Hey Guys,


The market was quiet to start the morning but then had a downward spike about an hour into the trading session. It brought some of my position values down with it. We'll see where it goes from here.


FTNT hit the profit target this morning. That was a ticker that went up about 20% of the way to the profit target within the first 20 minutes of when I bought it. So for anyone who considered following me on that trade, you likely faced a higher price than what I paid. Notice that the trade still reached the profit target though, so in this case it could have paid off to buy it even at a higher price than me. And in general the research I've done suggests that if, by the time you see the stock, the price is higher than what I paid, it does not mean that your odds of profit are lower if you buy at that price. It might actually be the opposite.


Yesterday in my extra options account all of my financial sector options hit their profit targets, so I cashed in on my positions for Capital One, Wells Fargo, and Discover. That made for a total of five profit targets in one day for that account. It was a nice recovery leg after last week.


Today I bought a stock position in TSCO and I bought options for WMT (Walmart). The WMT options are trading at a discount by my measures. They got off to a rocky start this morning, but if they end up going back up in price, the profit multiple might a bit nicer than normal.


I adjusted the "close by" date for my UNP options. It has a dividend date coming up on Monday, so I'll be manually closing the position tomorrow morning if it doesn't reach the profit target today. This is the second time in two weeks that I failed to notice an upcoming dividend date when I initially set my "close by" date. Thanks for being patient with me! I just set up another reminder mechanism to help me consistently notice them up front.


If you have any questions or feedback, I'd love to hear from you.


Sign Up for Trade Alerts