Thursday, January 22, 2015

SLV Option Update Heading Into Jan 2015 Expiration

As a follow up again to the current call options I am holding in SLV, I have Jan 30 expiration $17 strike calls.  They were purchased for 0.13 per contract on 12/19/14.

I just exited about half of those contracts for 0.71 which is about 440% gain.  I am holding the other half with a limit order to exit at 1.43 currently.

Currently the hourly charts of SLV are demonstrating loss on momentum and some divergence.  And given the fact that SLV is not too far from the 17 strike, it would be a shame to hold the whole position and see a pullback into next week basically take at 400% gain down to nothing.  So by exiting here I have guaranteed a profit on the whole position, and am awaiting my limit order to hit or expiration to come at the end of next week.

I made a post here linking to a TradingView post I made about SLV noting that it may be set for a vertical rally.

I exited the other Jan $15 strike calls on expiration day for about 150% gain.  They were purchased for 0.75 per contract on 11/13/14.

I am just posting this here because for the individual trader, without automated trading decisions, it is times like these that will make or break the profit.  So hopefully by thinking through a scenario like this you can improve your own trade management ability and plan contingencies.


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