Update - WYNN trade

Today I did some work on WYNN, first let's look at the chart:

Yes, my charts are just getting busy - you'll have to look closely.

Here's what's happened up UNTIL today:

1. Had an October trade and ended up with a net of NEGATIVE $0.90

2. Fixed that trade on 10/15 by selling a Nov. 60/55 Bull Put Spread that gave me a credit of $1.65

Okay, so as you know you really don't keep that entire credit that you sold until you close it out for $0.00. That rarely will happen with me. My main goal is to a position where I can buy back the Nov. 60/55 spread for approx $.65 or so. This would put that trade's NET at POSITIVE $1.00.

I would have taken that POSITIVE $1.00 and it would have offset the NEGATIVE $0.90 giving me a NET POSITIVE of $0.10. Not a ton of money - won't buy me many Bentleys but it will have turned my losing trade into a winning trade (no matter how small of a winner).

If you can't get a winning trade, then your second objective is to work on it and make the overall net loss as small as possible. Capital Preservation needs to rank very high on your trading objectives.

Now onto today - look at the most recent (far right side) blue box on the chart, which was today where I did a little work on the trade.

As you can tell from the last time I worked on the trade, which was 10/15, the market turned against me. Drat. It pulled back, stabilized out and then had a very nice pop up today on news. I decided to take some profits today based on that move.

Here's what I did today:

1. I bought back the Nov. 60/55 spread for $1.16. This gave me a positive net of $0.49.

2. I then "rolled out" my position by selling a new spread. I sold the December 55/50 Bull Put Spread for $1.01.

Let's do some math to see where I'm currently at:

Lost $0.90

Won $0.49

Net lost = $0.41 (so, I'm getting closer to turning this loss around).

I then took in $1.01 today, I need the stock to either go sideways or up so I can buy back this spread for $0.60. Because then I will make $0.41 on this current trade and this will get my loss erased entirely.

This is a lot I know, but if you take things one step at a time and always know where your profit/loss is on a stock, then you can keep working it as best as you can to get profitable (or at least minimize any losses).

One last and very important thought:

Notice that the 2 most recent blue boxes (where I did trades) are almost the same price, but yet I still made money on this most recent move. How can you make money when the stock moves sideways??? Theta!!! Thanks Theta - love ya.