Entries - example 1 - conclusion

Of course I'm going to show you that our trade hit it's target - I'm an optimist!!  But, if it would have gone against me and hit one of my stops, I would have quickly and gladly taken that loss.

Here's what happened:

Looking toward the middle of the chart, you'll see the green circle where we entered our bullish trade on 4/8/09.  You'll also see the blue line where we put one of our stops.  The purple line was our target line of $36.00.  On June 1st, 2009, our target was hit and that would be the date where we would sell our option and collect any profit.

Here's what the sale of the trade looked like:

Look at the left middle section of the screen where the yellow highlighted prices are.  You could sell your June 29 call option back to the market for $7.20.

You bought the call option for $4.10 back on 4/8/09 and once it hit your target on 6/1/09, you sold it back for $7.20.  This was over a 75% profit in under 2 months, making you $3.10 per option you bought and sold back.  Not bad.