Today was a great day for me in the market. It started off being around $900 down and I was like here we go with the 2-3 red days a week that has kind been going on for the last 2 or 3 months now.
Around a hour or so into our trading day SnapChat goes from a strike price of $4.80 and me trying to pickup like 6 more contracts to me missing that because I couldn't get in it in time. I so wish that I could have because from there in the next 4 to 5 hours it ran up from $43.77 to $47.62 and had me sittin here lookin like this...
I learned my lesson last week with this stock. It ain't Team Take Profits for nothin over here. What happened last week was the strike price went to $6.25 and never any higher that day and I didn't take profits trying to be greedy. Passed on that little over $1,100 that day and maybe I could be here today waiting on the chance to get back in with a cheaper strike price. I wish I had a $4.75 strike that I'm sure I seen last week waiting on it to go back up again. Lesson learned. Could be up $1,500 more than I am now if it all played out like that.
This is the whole trade from Nov 6th, 2020 to Dec 2nd, 2020. So 26 days to make $1,260 and this teaches you that you have to give your trade time to be right. I knew Snap would go up and bought a $48 Call that had until 4/16/2021 to move that $0.90 and my advice on when to take profit is to know when you get in the trade that you want to get in at "X" price and sell at "X" price.
These are prices that the stock has been at before. Pick a level that is cheap to get into when the price is down, and know that you want to earn lets say $1.00 in premium. Try to stick to levels close to it and take profit and don't just sit on it and let it pass when its at $0.90 premium profits.
I'm sure I sold
earlier today than collecting all of the $3.85 move that Snap had today.
Yeah I left $0.45 on the table since the strike price of the same
option is at $6.75 after hours. Thats $630 but always remember that its
easy to trade looking back on what I shoulda, coulda, woulda done.
Always take profit, be happy with it, move on to the next trade and be
smart about it all.
Good luck on your trades and if your new to
trading Stock Options and want to learn more... I have a cheap course I put together that explains how it all works and how I do it and keep from
losing.
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