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Direxion Daily Emrg Mkts Bear 3X ETF Message Board

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  • sah1958x sah1958x May 28, 2010 11:33 AM Flag

    I'm adding....watch the dollar.....

    I always choose a strike price with at least a 3% spread. you should consider doing the same, otherwise just one mistake will wipe you out clean. what was your strike price. also was that put contracts I am assuming.. if so, that's are going in your direction for now.

    I actually had an overnight call position and immidiately sold this morning for a small loss, and that just snapped my 9 in a row winning streak I had built up since April 27th. it was a 107 strike price with a 4 dollar safety cushion..

    by the way, I just got a SHORT THE SHI_ out of the S&P index at approximately 10:45am EST... I entered with a 113 strike price , 1000 put contracts at 4.27/share. just 30 minutes late, the price is at 4.83/share. so now I am up 5 times a much as my small loss this morning... and now has faded to 4.70/share. still up 43 cents a share... I'll be keeping a close eye on this one, and with a market sell order at 4.57, so I can still get 30 cents a share in profits if it drops any further.

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    • cmecladon

      I always choose a strike price with at least a 3 to 5% spread. you should consider doing the same, otherwise just one mistake will wipe you out clean. what was your strike price? also that was put contracts you bought I am assuming.. if so, the S&P is going in your direction for now.

      I actually had an overnight call position and immidiately sold this morning for a small loss, and that just snapped my 9 in a row winning streak I had built up since April 27th. it was a 107 strike price with a 4 dollar safety cushion..

      by the way, I just got a SHORT THE SHI_ out of the S&P index at approximately 10:45am EST... I entered with a 113 strike price , 1000 put contracts at 4.27/share. just 30 minutes late, the price is at 4.83/share. so now I am up 5 times a much as my small loss this morning... and now has faded to 4.70/share. still up 43 cents a share... I'll be keeping a close eye on this one, and with a market sell order at 4.57, so I can still get 30 cents a share in profits if it drops any further.

      • 1 Reply to sah1958x
      • cmecladon,

        I am at all cash right now, but I hope that last burst put you back in the money if you are still in the market. if you are out of the money, than you pretty much have not choice but to sit and wait since out of the money options are worthless.

        just hang in there, and remember, next time always give yourself at least a 3 to 5% cushion from the strike price, so you won't put yourself in that predicament anymore.

        and as a safer precaution, only day trade options near the money, since a 3-5% cushion can easily be broken in an overnight hold due to unexpected breaking news that would result in you waking up in the morning finding our options are worthless... don't let that happen to you, so please only consider day trading options, that way you can be near the money with high leverage as long as you have at least a 2 to 3 dollar cushion, if you choose not to go as high as a 3 to 5% cushion.

 
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