Chipotle is a stock that has interested me for a while. Generally I don't like pharma, restaurants, trucks, rails or retail for trading but it was looking interesting because of the gaps. So yesterday I traded a Sept call on CMG.
This time however I bought out of the money. I have been studying information about options...(book)
Trading Options for Dummies. Because there was a double gap on CMG (7/20/12 and 9/6/12 see a 21 chart) and because of the platform it was building on a Daily chart I thought I would make more money buying this way. I wrote down the amount for in the money to check and see.
I purchased 5 contracts of Sept 285 contracts which was 2914.56 (5.80) and sold nearly at the close for 5350.19. I held on all day because CMG never fell below the 5 minute moving average (which I used as my trend line) on my 21 chart (I got in on the 21 and out on the 21) . My profit was 83.5% or 2435.63. My out of the money trade was a little over 720.00 more than had I purchased in the money. It doesn't always work that way.
Looking at 21 chart the open of CMG I could have made more but looking at the Daily I see 2 problems. a 50 moving averge and resistance because of the huge gap.
I also bought
virtual 200 shares of LNKD off the weekly chart to practice the Printing Press. I am currently up on LNKD over $940.00. My practice 200 shares of AAPL is up over $21,000.00
My goal is to buy 200 shares of AAPL and if it looks good maybe 200 shares of LNKD for the printing press technique real money.
Edited 1 time(s). Last edit at 09/07/2012 08:52AM by Darcy.
