AMZN – 04/27/2017 Look Back Trade

This is another trade like the one above. This time I had price support at 9, 21 and the 50 day moving average. Also had bollinger band support and chart price level support at 907 and 896.

I was so excited about the set up, I did not notice that earnings were about to be released. That explains why I got such a great premium on this position when I entered. If you can get a WELL above average premium, something is wrong. I knew better.

Once I realized my mistake I had a number of things I could do. I could purchase Puts to protect part of the position, maybe buy a put spread or try to close for a profit or even a small loss.

In the end I had the opportunity to close and make a little money. I probably could have made more by using another strategy but it would have been more complicated. I had some other trades I was managing and elected for the simple approach.

Not a bad return for a mistake and in less than a day. Closed with a $130.00 profit on a risk of $1736.00. One day return of 5.65%.

Date

Sym

Exp

Strike

Price

C

Type

Cost

Balance

04/27/17

AMZN

STO

4WK4

$887.50

$7.42

10

P

$7,420.00

$7,420.00

04/27/17

AMZN

BTO

4WK4

$885.00

-$6.64

10

P

-$6,640.00

$780.00

04/27/17

AMZN

BTC

4WK4

$887.50

-$5.23

10

P

-$5,230.00

-$4,450.00

04/27/17

AMZN

STC

4WK4

$885.00

$4.58

10

P

$4,580.00

$130.00

Profit:

$130.00

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