XLU Trade on Feb 12, 2021 15:23 from tjmiller2001: Tradervue User Stock Trades.

Shared by
tjmiller2001

Entered swing on XLU.

Utilities have been weak recently while SPY has been hot. If the market pulls back, I expect a shift to defensive names like the utilities that XLU owns.

XLU is at support when I drew a diagonal trendline on the daily chart.

Entered at 62.50 with a stop at 62.25 and plans to take profit if 63.50 acts as resistance.
That's a 4:1 Risk Reward which I feel good about. Not entering with huge size because for me it's tougher to predict the movement of a whole sector than just a company.

++ Got out for a $9 loss once my level failed to hold. Good RR but not much conviction behind thesis, relied too heavily on technicals here.

Execution detail:

Date/time	Symbol	Side	Price	Position
2021-02-12 15:23:32	19 MAR 21 63 CALL	buy	$0.9900	long
2021-02-16 10:03:40	19 MAR 21 63 CALL	sell	$0.9000	0

#chart1 { background-image:url('/shared/charts/pricechart?symbol=XLU&trade=27463277&end=20210315&i=d&TimeRange=120&Volume=1&ChartType=candlestick&width=450&height=275');}

#chart2 { background-image:url('/shared/charts/pricechart?symbol=XLU&trade=27463277&end=20210216100340&i=m5&TimeRange=90&Volume=1&ChartType=candlestick&width=450&height=275');}

Comments

Johngo

2021-02-13 06:57:08

I am totally new to option trading, your breakeven point us 62,50$ + 0,99$=63,49$, correct? Where do you take profit and sell it?

tjmiller2001

2021-02-18 00:45:58

Hi Johngo, unfortunately, options are a bit more complicated than that. The "Implied Volatility" can change, which can make options worth more or less even if their price stays the same. If this is confusing. Try googling, "What determines an options price?"

Ignoring that, My breakeven price would be 63.00 + 0.99 because 63 was the strike price of the contract I paid 0.99 for.

Hope that helps!

XLU Trade on Feb 12, 2021 15:23 from tjmiller2001: Tradervue User Stock Trades.

Comments

Leave a comment about this trade!

Editor syntax