March 16, 2019
This week was pretty solid in terms of options trades! The market being so heavily bullish definitely helped us out. The trade of the week of course was CVS with 100% gains!! Absolutely amazing reversal. I wrote up about the CVS play here if you’d like to read more about it.
I also traded T for 15% profit. This was a pretty quick in and out of a trade. I believe we were in this one for less than 15 minutes. Here is the one hour chart for T. We bought on the 12th on that really big open and morning run up. As you can see there is some pretty solid resistance right round $31.00.
While those two trades were successful I spent more time focused on my loser of the week which was another CVS trade I took part in. I think there is a solid lesson to be learned here. Overall, the CVS chart to me is bullish especially with the market running up. I mentioned this in my post outlining CVS. My error though came with being over-confident. I took that 100% gainer and then left close to another 100% on the table which was already upsetting. I then decided to hop back in on my original technical analysis of CVS being so bullish. This was a mistake because I didn’t take in consideration any of the short term technicals. In short - I bet against my MFI. I ate a 23% loss for this.
It’s tough exiting a trade. That is probably the hardest thing about stocks and options trading. With stock trading the price fluctuates so slowly that you usually have plenty of time to plan your exit. With options trading if you don’t plan ahead you can find yourself making crucial decisions in the heat of the moment which is absolutely terrible.
This was a pretty light week. A majority of the trades came from Brad this week. I’ll be looking forward to seeing what happens in the market this upcoming week. SPY is at a crucial point. If we burst through 283.00 I’ll be absolutely amazed.
Good luck everyone!