Hi Guys,
The market came back up overnight and now we're back where we were at the end of last week (that 4400 level on the MES futures).
There haven't been any new trades yet today. The watch list has a good amount of tickers on it, but as of right now there are none that are particularly close to triggering an entry. So it might be a quiet day for new trades.
I have four options positions that are set to expire tomorrow, so that means I will be closing all of them near the close of market today. You'll see those listed in red on the extra options account page.
It would have been great if RCL and LUV had gotten a really strong jump out of the gate this morning since my options on those are going to get closed later today, but as of right now the stock prices for both are right about the same as what they were when I bought the options. Since, for most options, you have to pay a premium above their intrinsic value to buy them, it means that the price of the underlying stock typically has to go up just to break even on the option position (as depicted by the graphic on this page). That means if the underlying stock price doesn't move, then it normally results in a loss. That's why the win percentage of my options trades is typically lower than that of my stock trades. I'm ok with this tradeoff because in the cases where the underlying stock price does go into the profit zone, the profit multiple can be pretty exciting (as we saw with the SRPT option trade earlier this week).
If you have any questions or feedback, I'd love to hear from you.