Yesterday I sold 50% of my position (mixed strikes @$32.99), this morning I exited the rest. All of today's sales were $30 strikes: sold half at $3.06, and the other half at $3.11. To the forum regulars: thanks so much for the ideas, analysis, commentaries, educated guesses, posted trades, and sage advice. You make a real difference!
Nice heart shot. Your feet were at shoulder width, your nose was on the string, and you were at your anchor point. You followed AGNC's climbing trail over the last 2 weeks, and when you let your arrows fly, they went straight into your bank account. It has been very profitable tracking this prey every (almost) quarter. Let's plan (hope) for more of the same next quarter.
It's great seeing the DD (old and new) nailing excellent returns on this cycle. Seems like old times.
Exited 50%+ of my position today @ $32.99 ($30's @ 2.99, $31's @ 1.99). Have been watching Level 2 all day, big resistance at $33.00 throughout. Hopefully better action tomorrow...
Good luck to the longs!
Well, I am half out, I just sold all my April 31s, and all my April 30s, and some of my Sept 30s, My BE across all contracts is 32.03. I just sold at 32.90. I would have done better yesterday, but I will hold the other half and hopefully see pps improvement between now and Friday morning. Still 27%
I can never understand why people get out when they have met their "target". Why not get as much as you possibly can out of this run? When I owned my own business I never set revenue goals or formulated business plans. I just made as much money as I possibly could. Setting a goal could only result in slowing down my efforts when the goal was reached or in frustration if it was not reached. Go for the gold, damn the goals!
When I owned my own business, I, like you, didn’t set sales goals as I saw them as limitations. However, trading stock is not the same thing as managing your own business. The stock market can turn on you in an instant and wipe out your profits. Unless you have customers who file law suites against you, they can’t come in and take money/profits out of your cash drawer. You can make mistakes with your own business and lose, just as you can make mistakes in trading stocks. But the real winners in both running businesses and trading stock learn how to minimize their risks. And one way is to know when you can realize a reasonable profit and take your shekels off the table. That way you prosper to trade another day.
GL2UA and go AGNC.
I took another third off this AM @ 33.09 of my remaining Calls. Last trades will be tomorrow on the Open and Friday on the Open. Can't lose at this point as its the House's money. That is called money management. You must take profits as they become available.
I've preached about this before. How often have you been in a trade that has been up, and you expected the market to go higher just to see it go against you. Then you sell at your BE point because you don't want to take a loss on a previously winning trade, just to see the market go back up, once you have decided to sell?
If you have taken profits on the way up you are less likely to panic sell as the market retraces.
That is "why" goals are so important. I don't want to "go for the gold" as I have preached to X about "not" doing. I want consistent small wins, so at the end of the year I have a nice green account. I scale out of my winning trades. Again I have taken 50% off yesterday on the Open, 1/3 of what's left this AM, 1/3 tomorrow and the last 1/3 on X-1 Open.
If I lose on those trades... tough, because I have already banked profits on the other trades. I want to trade as long as I live and be a consistent winner. You must have a money management plan, staying consistent .... and that includes removing money from profitable trades.
Then you don't need luck,
Its like optionjunkie said.
Example. Suppose we look at a trader like X or Roy who throw down 5000 option contracts on AGNC at a March 33 Call strike. This will be such a good example. You can buy that for .12 or $12.00/contract. So those 5000 contracts will cost them $60,000. They have until the close on Friday to make money on those because they expire at that time.
Those 5000 contracts control 500,000 shares. That's correct, that would cost you $16,530,000 to buy that same position with Long shares. I think you are beginning to get it, right? X is controlling over 16 million dollars worth of shares with only 60,000 dollars. That is called extreme leverage.
If the stock trades up to 34.00 tomorrow, should he get out or hope for more? Well those options he bought for 60,000 dollars are now worth 500,000 dollars. That's right half a million on just a .94 cent rise from tonight's close. Should he take his $440,000 one day profit, or hold for more?
I think you can understand now the reason we take our profits when we see opportunity. Oh, suppose the PPS sputters exactly like in Dec's run to EX when it lost 45 cents from 4 days out to EX?
X would lose $225,000 from that 34.00 position..by "Going for the Gold". He can tell you, because I think he lost exactly that much.
The problem with options, is they are so highly leveraged. A 50% gain can turn into a loss overnight. Most of us have a learned to lock in big profits when we have them. There will be plenty of more opportunities.
I'm out of everything.
Still think it will go up for 2 more days, but I decided not to get greedy... I am out of all positions with approximately 200% gain (I need to calculate it still)...
Out half of my 31's and 32's when we hit 33 this morning. Holding the rest with a pretty tight trailing stop. Judging by the volume today vs. the open interest, I'd say a lot of folks are holding for more....