F Trade on Jan 11, 2021 15:49 from tjmiller2001: Tradervue User Stock Trades.

Swing Trade with a hedge on Ford. Bought a long term call with a higher delta than a short term put.

I see short term weakness based on F being at resistance on a 5 year downward channel.

I see long term strength based on several fundamental stories. They're cutting out cars that aren't as profitable and focusing more on selling vehicles with better margins. The Ford Bronco is only lasting an average of 6 days on car lots before it is sold. New electric cars are coming out soon, which has been a hot sector recently. Ford is shutting down production in Brazil, as part of a "turnaround" effort that Wall Street responded positively to.

Strong entry because I acted with size based on my well-researched plan. I usually hesitate to enter because I'm scared of a loss.

Closed my hedge after big green day, thesis playing out. Going to continue to hold for awhile, thesis can still gain momentum and support after earnings.

Got completely out for a profit, but held for too long. Long call ran to 4.42 and instead of setting a trailing stop, I decided to just play it by ear and sell when I thought it was the right time. When you trade without a plan, you lose in the long run. The next 4 days, those contracts closed at 3.85 then 3.70 then 3.50 then 3.15.

The right time to sell was the day the contracts closed at 3.70. My rule that would've got me out wisely should've been: "When a stock closes below the LOD of the peak day, the run is done or pausing and you should get out."

It is okay to flip your bias and go short or wait for another reentry long. Have a rule to avoid overstaying your welcome.

Lesson Learned: Have a plan on your swing trade exits, don't just hold and hope. Names with momentum can slowly donwtrend and eat your profits before you decide to act.