Well Mr. Stock Market, it's time for me to take back the money I "loaned" you over the last several years. By the way, my interest rate is exorbitant!!
Check out the chart:
As you can see, today's action got close to the target. I COULD stay in this trade for another few days to see what happens. But, I decided to take profits for 3 reasons:
1. This trade is profitable and there's not much room left to hit the target - no need to get overly greedy.
2. See the upper tails on those candles - those are sellers, and who knows when they may get aggressive and start pushing this price back down. I'm not going to ride out the possible push down and possible then push back up from the sellers because of #3.
3. Earnings is right around the corner. Earnings is a GAMBLE. They could push the price up higher or drop it way lower. Nobody knows how the market is going to react to these earnings. Since it's a gamble, it decreases my edge and without an edge - I DON'T TRADE. I booked a good profit in this stock and I'm taking my money and finding the next set up that has a nice edge in my favor.
This is my sandbox and I'm done playing with this trade!
So, my long option on this stock cost $1.80, I sold it today for $2.25 for a $0.45 profit. This gave me an ROI of 25% in approx 19 days. LOVE IT. I'll take these type of trades the rest of my life - base hits.
Now, onto the search for the next one...
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