Home on a boosted boardGood morning fellow traders and congratulating to all who made money on the recent breakthrough, and thanks to fellow LONGS for keeping this billboard tidy.
As promised 10 days ago to keep you posted on my latest trade, so today’s that day.
If you are short, you should stop reading in 3, 2, 1, now.
Having home as my 4th largest holding, I didn’t want to allocate more on this one stock, so i took another route, options. When the stock hit 14.22 i told myself that the invisible ceiling of 14$ was damaged so probably a good time to get in. Now how much options could I get if 10-15k were deployed to buy options expiring right after earnings, so I went for it aware that this trade may be washed away 9 days after. Here’s what I got.
160 hcg strike 14 at $0.50 for 8000$ and 200 hcg strike 15 at $0.10 for 2000$, expiring nov.17th.
a few days after I added 40 hcg strike 14 at $0.70, same expiry.
Sold both options yesterday at $1.65 and $0.65 for a total of $46k, trading fees were a bit higher than $1000, rbc direct charge $1.25 per contract plus $9.95.
The purpose of this post is not to brag about this winning trade, I have in the past traded many loosing trades but rather expose another spectrum of trading and its costs, to be honest, such a short time to expiry got me nervous more than once, so deep inside I knew it was more a gamble than a trade, but hey, it worked out.
Have a great weekend, wishing you all great trades, cheers.