CELG – 7/13/18 – Long Call
CELG had been in a sideways move after a down trend. I watched it move up then retrace just above weekly support and decided to purchase the $80.00 Calls expiring on 9/21/18 with CELG trading at $85.51.
My initial mental target was $87.58 with my stop around $83.47.
On 7/17 the 200 moving average was showing strong resistance. CELG had hit it and bounced back down 2 days straight. I could close this position for a small profit but decided to close.
7/18 bounced off 200 day again, which was starting to worry me a little. Yes, it could be compressing before a huge up move or it could be getting ready to take a dive because of too many sellers at that level.
On 7/20 it bounced off the 200 moving average again. With earnings coming out next week and no desire to hold through those I started looking for the exit.
I ended up with a loss of $110.00 on a risk of $1,570.00 or about 7%. Turns out I should have held as CELG eventually did go up. I am not sorry I sold for a small loss, earnings are scary to hold through!
| Date | EXP | Strike | Price | Ct | C/P | Cost | Balance | |
| 07/13/18 | BO | 09/21/18 | $80.00 | 7.85 | 2 | C | -$1,570.00 | -$1,570.00 |
| 07/20/18 | SO | 09/21/18 | $80.00 | 7.3 | 2 | C | $1,460.00 | -$110.00 |
| Loss of: | -$110.00 |
