WLT LOL!!

Got in a little after 10:40 on 5 E chart, HRFP on GW 21, HRFP on 34. 10 E chart showed no E but knowing WLT there was little doubt where it was going.

Put in GTC for $2.00 bought 45 contracts for .64. HIH with $5,986.43

Bad news floated aound WLT after I got out.Wondering who knew before news hit on Briefing? Apparently WLT is having $$ problems according to Forbes but "Deutesche Bank defending WLT; says news of refinancing slowing is old."

Glad I was out before all this stuff came out. Goes to show trading is an art but also can be risky.

add on:


14:01 WLT Walter Energy: Trading Halted in WLT (12.15 -2.54) -Update- Briefing.com

Oh so glad I had a GTC and am out of trade...



Edited 2 time(s). Last edit at 06/14/2013 01:29PM by Darcy2.

Darcy - wow, now that's what I call a brick! I am a little confused though. Did you put in a $2 GTC because you expected the stock to go down that much ,even without the bad news coming out? $2 is a significant move for a low-priced stock & also considering the spread on WLT & that we're in the summertime zone - I would've been looking for a smaller profit. You also said bad news came out after selling, but were glad to be out of the trade. I DO understand that you're glad regardless with that kind of profit, but isn't bad news the best thing you can get if you're in a Put - as Gary says "throw a party". Maybe I'm reading the post incorrectly, just wondering. Congrats, nice way to head into the weekend.

cheetah Wrote:
-------------------------------------------------------
Did you put in a $2 GTC
> because you expected the stock to go down that
> much ,even without the bad news coming out?

Nope. When I enter a trade I never put in a GTC unless I am going away from my computer or have to leave the house. Otherwise I monitor it all day.

I placed my GTC after I was already up $1.75. I let my option move off the 10 E chart.

I was not up $1.75 when I considered leaving the trade at around 12:30 however. It looked like the 5 moving average was going to cross the 10 but when it didn't I remained in the trade. Then the option began to fly around 12:53 and I put in a $2.00 GTC then. I was out of the trade somewhere in that 13:00 candle on 5 E chart. I put a GTC in because I left my computer and went to make a pot of coffee. When I got back I was out. I could have caught the first minute of that breaking news @ 1:04 I don't know since I wasn't watching. I didn't expect to get kicked out so fast to tell the truth.


You also said bad news came out
> after selling, but were glad to be out of the
> trade. I DO understand that you're glad
> regardless with that kind of profit, but isn't bad
> news the best thing you can get if you're in a Put
> - as Gary says "throw a party".

I was glad I was out because they halted the stock. I don't want anything to do with getting caught in a halt. News started to break on WLT @ 1:04 and according to Briefing the trading on this stock was halted at 2:01. I was already out before 2:01 and as I said LOL...as I wiped the sweat off my brow. As far as I remember GW saying you do not want to get caught in a halt!

For some reason the options were telling me this stock was going down fast. Those options were flying down @ around 12:53. I JUST HAPPENED to be in this stock when the rumors began to circulate and long before it hit the wires. I think I was in the right stock at the right time...PURE LUCK IMHO!

Maybe I'm
> reading the post incorrectly, just wondering.
> Congrats, nice way to head into the weekend.

Never hurts to ask questions and my weekend was spent working in the yard and giving my S/O a great Father's Day off in his hammock; his gift for Father's Day.

Thanks for the response - that makes perfect sense. I appreciate your willingness to break down trades for the forum - it is a big help.