BBY has reached my target area, and it may reverse at any time. I am looking at the RET oscillator and the Stochastics for a buy signal, at which time I will convert the trade into a Calendar. This is not my favorite trade, but this will give us an opportunity to explore other ways of trading. According to the count, wave X will be completed and wave Y UP will be initiated, a bounce to $45 is quite possible. After that, if wave Y is truly underway, we can transform the trade once more into a Bull Put Spread, if we so desire.
Well, today BBY declined rather strongly early in the day, but begun to climb from the lows. I interprete this as a possible bottom, so I decided to exit the trade, as the profit approached $900. Here is the fill confirmation.
This is a $850 return on a $2350 investment, or 36% return in a week! no reason to stay any longer, I think.
3 comments:
It is good to read your comments about 'disengaging' from a trade and why. Before opening today what would be your target price for exiting the order and why?
Speaking as my thoughts 'mull that question over'. I suppose you could exit if the trade opens at a lower 'value' than yesterdays close. Watch and hold if the 'trade value' goes higher to get a better price.
Just some thoughts.
If you look at the Refined Elliott Oscillator (You could use any oscillator for that matter), the stock is oversold. The rally from Apr to Aug has been retraced 50%, so a sideways correction is quite possible. It is critical that one waits for the appropriate signals.
Well done on exiting at $6.40. I placed my order before the market opened and executed at $6.10. As I only did one contract, that was a profit of $115. Better than a slap in the face!!!
Overall a 19.32% return, not as large as yourslef, but a useful exercise. As I said I am watching and observing as a participant rather than a spectator.
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