Advanced Option Strategies Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Advanced Option Strategies

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Joe Waynick who wrote (61)	7/30/1998 10:02:00 AM
From: Joe Waynick	Read Replies (1) of 355

ONSL UPDATE! I seem to have contradicted myself. In yesterday's post, I indicated I would cancel the buy to cover at 24.50 to "wait and see." That is contrary to the strategy. Therefore, after making that post, I did not cancel the order and I covered ONSL yesterday at 24.50, for my second trade. However, I have not gone long again. At this point, I can exit with a $6.5k profit. As of the close yesterday, the straddle is worth exactly $10.25. With more volatility today, the value of the straddle could easily slip below $10. Here is the situation as it applies to this strategy: 1) ONSL missed earnings early in the strategy jeopardizing the channel 2) The value of the protective straddle has fallen below $11 3) The stk moved into a lower channel after missing earnings in April The name of this game is safety, and this situation has developed too much risk for me. It's time to step out of this trade. Today, I'm entering a sell order for the long call @ 5.125. Since the technical indicators for this stock are negative, I will enter a sell order for the long put @ 7.375 for additional profit.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next