Friday, November 13, 2009

Update - SMH trade


I closed out the SMH trade on 11/12. Here's the chart:

SMH had a nice bounce back up. I decided to close this position by buying back the credit spread on 11/12 for $0.27 (the blue box furthest to the right on the chart). The price was coming back up to the heavy resistance and I didn't want to take any chances for the stock to bounce back down from that - especially since we are running out of time for this November expiration trade.

So, I closed out buying back for $0.27 and originally sold the spread for $0.35. Therefore I made $0.08 on the trade.

Again, this was not a trade that is going to make me rich. But, I also did not take a loss on it.

I'm feeling very good now that out of all the trades that originally went against me, I only have 2 left open to fix. Things could be a ton worse.

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