ATVI – 7/6/18

This was another of a series of trades I did in ATVI as I tracked it through a number of different trades.

This time I actually purchased shares of ATVI and entered into a standard covered call.

With ATVI trading at $77.06 I bought 100 shares and sold a $77.00 call that expired the following week against it.

This trade had a number of early problems as I watched price action and MACD. I also was concerned about an upcoming resistance point that I had not paid enough attention to before I entered the trade. Yes, I still sometimes make mistakes. It happens when you get in too much of a hurry and have to many trades going on.

On 7/9 ATVI spiked down to $76.25 in early trading on a downgrade. Because this happened so fast into this trade I decided to go ahead and close instead of trying to ride out as I will sometimes do in a covered call trade. I trade these a little different. If I had held this trade I would have been fine as ATVI recovered before expiration but I closed.

Because I took quick action and the price protection I get when I enter a covered call I did not take that much of a loss.

I lost  $48.00 on a risk of $7597.00 or .63%.