You were looking for some successes in gold. On April 27 I purchased 3 Aug 22.5 calls for Seabridge Gold (SA) at 1.95 per contract. I chose to buy gold options because the market was a little unpredictable and the Gold Bugs index had reclaimed its 50 day moving average and seemed to be going in a stair step fashion upwards. Moreover, SA was completing a downwards ABC pattern and was hitting the Fibonacci 61.8% retracement. SA 22.5 contracts were slightly out of the money, had a good delta (>0.4) and were undervalued at the time. SA began to climb and I sold the first 2 contracts for 3.45 when SA had retraced close to 100% of its ABC pattern. Given that I wasn't going to lose money on SA, I placed a 5% trailing stop on the last contract of SA and rode it all the way until I was stopped out today at 6.80.
I really enjoy your blog and think that it provides a wealth of information to your students and newcomers alike. I would urge other successful students to not only report their successes, but to also outline their thought processes and strategies during their successful trades. I think that we should all try to help each other out and open each others eyes to different approaches when trading.
--
Cheers,
Roland S.
--
Cheers,
Roland S.
Ontario CANADA
No comments:
Post a Comment