I had to take some time off to work on my house and take care of my son.
I noticed that the daily chart for Facebook (FB) showed both a bullish gap and a bullish divergence in the MACD. The implied volatility is also high, meaning that there is a lot of premium available for option sellers.
I sold 2 $19 weekly puts, expiring 8/24.
Here is the chart:
I sold the puts for 0.55 the price range was 0.30 to 0.70.
So my entry score is:
(0.55 - 0.30)/(0.70 - 0.30) = 62%
Friday, August 17, 2012
Wednesday, August 1, 2012
Oops. I should have stayed away today. The market was very news driven and insisted on going down, even though it knew I was long all day.
Transactions:
Buy 1 1380.75 8/1/2012 6:08:34 AM Entry 1L
Buy 1 1378.5 8/1/2012 6:35:36 AM Entry 2L
Buy 1 1377.5 8/1/2012 6:40:25 AM Entry 3L
Sell 1 1378.5 8/1/2012 7:05:34 AM Exit 2L
Buy 1 1375.25 8/1/2012 7:13:37 AM Entry 3L
Buy 1 1375.25 8/1/2012 7:13:37 AM Entry 4L
Sell 1 1375.75 8/1/2012 7:27:20 AM Exit 3L
Sell 1 1377.75 8/1/2012 7:36:55 AM Exit 2L
Buy 1 1377.75 8/1/2012 8:04:27 AM Entry 3L
Buy 1 1376.5 8/1/2012 8:12:04 AM Entry 4L
Sell 1 1378.25 8/1/2012 10:45:17 AM Exit 3L
Buy 1 1375 8/1/2012 11:00:37 AM Entry 4L
Sell 1 1373.75 8/1/2012 12:05:16 PM Exit 3L
Sell 1 1374.75 8/1/2012 12:25:43 PM Exit 2L
Sell 1 1376.75 8/1/2012 12:29:00 PM Exit 1L
Sell 1 1373.25 8/1/2012 12:49:38 PM Exit -
Loss for today:
7.75 points
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