Today the target was hit. Yes, it took awhile to get there after some going sideways and pulling back, but today was a nice pop up to guess where???? RESISTANCE. I.e. the next line in the sand above for the sellers. Looking closely at this chart you can see that the bulls actually had price above resistance, but those sellers weren't about to put up with that mularky and they pushed that price back down to almost my line exactly. (resistance and support are AREAS not EXACTS - but it does make me look somewhat good on this chart, huh?).
Something else to take away from this trade - you GOTTA HAVE ENOUGH TIME in your option in order for the price to get to where it's going. If I would've purchased a shorter time frame option, then I most likely would have had either a loss or not as good as a profit. WHEN YOU BUY AN OPTION BUY AS CLOSE TO 90 DAYS AS POSSIBLE!
Enough of the speech, let's get onto the numbers:
Bought the option for $1.63
Sold the option for $2.19
Net Profit = $0.56
ROI = 34% in approx 6 weeks
Not the strongest of trades, but it IS profitable. So now, I'm looking for another good trade to put on. When the right one comes, I'll be ready for it.
Thanks Chuck!!
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