Tuesday, July 5, 2011

DELL - target hit - better late than never

Thank you LORD for another profitable trade!

Here's the chart:

This trade took a looooooooong time to hit the target.  After the entry, there were a couple attempts at going higher and then a pullback and sideways trading until the last few weeks, then finally it got going higher again.

Better late than never, but when a trade takes this long to complete, it does hurt the ROI a bit due to theta.  However, it's a win, here's the numbers:

Sold the long option for $1.38, bought it originally back on May 9th for $1.21, for a profit of $0.17, with an ROI% of 14%.

Again, this isn't a bad trade, it's just a long trade - but that's why when trading this hi/lo system I like around 90 days until option expiration.  If I had bought an earlier option expiration date, I would have had a loss instead of a win.

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