GM – 09/20/16
When I entered this trade GM appeared to be in a range from $30.00 to $31.25 with low implied volatility. On 9/23 I rolled my 9WK4 to a 9WK5 position because GM had broken out above my range to $32.29. By 9/30 it had come down some but was still to high so I rolled the 9WK5 short to 10WK1.
During that next week it shot up again to $32.50 which was hurting my position. I rolled my 10WK1 to a 10WK2 trying to manage this trade. On 10/14 the price had dropped to $31.88 and I could have closed the position for about a $180.00 loss. That would have probably been the smart move since there appeared to be a lot of support at $31.50. However, I elected to roll again. Rolled my 10WK2 to 10WK3.
On 10/21 I started the day by placing a close at break even, hoping to close the trade. After lunch I had not filled so decided to stay in and roll my 10WK3 to a 10WK4 position. By 10/28 with GE trading at $31.69 I could have closed for about a $200.00 loss. Instead I decided to roll again. Rolled my 10WK4 to 11WK1.
On 10/31 I could have closed at a loss of $160.00 with GM at $31.51. I held. On 11/1 my loss looked like about $80.00 with GM at $31.41. On 11/2 GM was at $31.52 and I was looking at a $50.00 loss.
On 11/3 my GTC close was hit giving me a small profit on the trade. This was a lot of work for a relatively small gain. Probably I should have closed for a loss earlier but I held on, confident (or praying) my initial analysis of GM was correct and it would return to its range.
It did and I was able to get out despite over trading for a small profit. My max risk on this trade ended up being $940.00 on 9/23. I ended up with a $260.00 profit or 27.7% on that risk over 44 days. I know that sounds pretty good, but I had to work for this one and the stock had to fall back in line with my predicted range after the break out.
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Date
Symb
Action
Exp
Strike
Price
Cont
Type
Cost
Balance
09/20/16
GM
STO
9WK4
$31.00
-$0.67
10
Call
-$670.00
-$670.00
09/20/16
GM
BTO
NOV16
$31.00
$1.63
10
Call
$1,630.00
$960.00
09/23/16
GM
BTC
9WK4
$31.00
$1.29
10
Call
$1,290.00
$2,250.00
09/23/16
GM
STO
9WK5
$31.00
-$1.31
10
Call
-$1,310.00
$940.00
09/30/16
GM
BTC
9WK5
$31.00
$0.72
10
Call
$720.00
$1,660.00
09/30/16
GM
STO
10WK1
$31.00
-$0.86
10
Call
-$860.00
-$800.00
10/07/16
GM
BTC
10WK1
$31.00
$1.24
10
Call
$1,240.00
$2,040.00
10/07/16
GM
STO
10WK2
$31.00
-$1.29
10
Call
-$1,290.00
-$750.00
10/14/16
GM
BTC
10WK2
$31.00
$0.92
10
Call
$920.00
$1,670.00
10/14/16
GM
STO
10WK3
$31.00
-$1.01
10
Call
-$1,010.00
$660.00
10/21/16
GM
BTC
10WK3
$31.00
$1.04
10
Call
$1,040.00
$1,700.00
10/21/16
GM
STO
10WK4
$31.00
-$1.26
10
Call
-$1,260.00
$440.00
10/28/16
GM
BTC
10WK4
$31.00
$0.43
10
Call
$430.00
$870.00
10/28/16
GM
STO
11WK1
$31.00
-$0.64
10
Call
-$640.00
$230.00
11/03/16
GM
BTC
11WK1
$31.00
$0.35
10
Call
$350.00
$580.00
11/03/16
GM
STC
NOV16
$31.00
-$0.84
10
Call
-$840.00
-$260.00
Profit:
$260.00
