
Moving into 2019, companies started quickly providing earnings warnings. Apple was the first to do it on the first day of trading on January 2nd. They went down hard and shot up after that. Apple was the only one to actually drop after the warning. Skyworks went up after the warning and up further after annoucing lower than expected earnings. That doesn't make sense to me.

Expedia was a big mover after reporting earnings on Thursday after the close. I saw it run up near it's
52 week high and when the market opened on Friday it came straight down. I noticed that it bottomed just above 129 by 9:45am to I bought a couple 132 calls for next week. I failed to sell them at the peak as I was greedy and expecting it to go higher. I would have been up 260 if I sold them when they were worth 4 a calls. I have that chart to the right also.

straight up from there. I sold my calls earlier than I noted on this chart because I sold them at 1pm and did not expect it to go higher from there. If I held until close, I would have made the same profit as if I sold in the first 10 minutes of the day.
That brings a huge reminder to take your profits early and do something else for the rest of the day. The stock of your choice must go higher than previous morning high for your option less than 2 weeks out not to depreciate due to time decay.
/As usual, I hope this helps someone. I am still trying to refine my skills and be profitable in larger amounts every day. My main issue is buying too early and not waiting for a confirmation on the proper entry point. I did it on Alphabet and Expedia on Friday, but failed to do it correctly on Boeing which made taking the largest profit not possible since I got burned earlier when the MACD and the Stochastic Indicators peaked and I didn't sell.
IMPORTANT LESSON: Many times you can profit in less than an hour. You will not make more by holding longer. This is not a job and you do not make more watching it go down. You actually lose and will lose twice as much as you could have gained if you don't get out at the right time. Take your profit and run!
No comments:
Post a Comment