CELG – Long Call – 7/13/18


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

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