Planning to buy AAPL 170c (Oct 14) come Monday. The cost of the contract is around $100 and the risk/reward looks enticing. Losing on this trade would not be devastating in the slightest while winning on this trade would be great. I'll play it by ear, but if this trade does end up working out, then I'll plan on rolling contracts until the trend appears to be done for.
If things open down, then I'll likely wait a bit and see what happens. Otherwise, I'll enter the trade.
The risk reward is 2:1 (~$100 reward and a ~$50 loss).
This does meet trading rules:
1) 8/89 cloud is green
2) Prior day was green
Additional things to note:
1) Price is bouncing off of 200 EMA
2) Vector Vest just posted a primary up trend
3) Much selling took place over past two weeks
4) Weekly chart looks strong
5) Theta will cost me ~44/DAY at the time of entering the trade.
Mindset:
1) After journaling numerous trades, it is clear that I have closed out too early on most of them. Instead of letting winners run, which is a fundamental part of successful trading, I took profits and ran. From reading, I think this will end up killing my account unless I change. You can go broke taking profits, so let the winner run. With options that would mean rolling the contract after a PT has been hit or if theta isn't eating the contract alive, then leave it on.
2) This is the most amount of mental energy I've put into a trade thus far given the detailed notes. If it fails, then simply stick to the process by journaling the trade and then pressing onward.
3) I'm having fun doing this, so keep it that way.
If things open down, then I'll likely wait a bit and see what happens. Otherwise, I'll enter the trade.
The risk reward is 2:1 (~$100 reward and a ~$50 loss).
This does meet trading rules:
1) 8/89 cloud is green
2) Prior day was green
Additional things to note:
1) Price is bouncing off of 200 EMA
2) Vector Vest just posted a primary up trend
3) Much selling took place over past two weeks
4) Weekly chart looks strong
5) Theta will cost me ~44/DAY at the time of entering the trade.
Mindset:
1) After journaling numerous trades, it is clear that I have closed out too early on most of them. Instead of letting winners run, which is a fundamental part of successful trading, I took profits and ran. From reading, I think this will end up killing my account unless I change. You can go broke taking profits, so let the winner run. With options that would mean rolling the contract after a PT has been hit or if theta isn't eating the contract alive, then leave it on.
2) This is the most amount of mental energy I've put into a trade thus far given the detailed notes. If it fails, then simply stick to the process by journaling the trade and then pressing onward.
3) I'm having fun doing this, so keep it that way.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.