On Feb 13th I traded AMZN. Although the trend was over according to RTT I still looked at AMZN. I often do this using RTT for my favorite stocks. After a trend up or down the stock can turn around and bring some real $$$$. Any way I looked at AMZN’s chart and I knew it was going to go up right on the open.
Looking at the 55 chart you could see AMZN popped up on the open creating a $3 gap up. My I did not wait for a “pull back”.
I jumped on this trade buying 40 out of the money 265 calls @ $1.95. This was the first trade I have ever made that exceeded a cost of $3,000.00. Needless to say I watched this trade with eagle eyes.
I sold off the 55 chart after on the 6th candle from the open (small red candle on the 55 chart) I sold there because of the pressure of the 200 moving average and because the candle at 1:10 did not close above the 200 moving average.
I sold 40 contracts @3.75. My gain was 92% or $7,193.45. My shock… the trade cost me $120.00 to make.
My S/O and I usually trade up to Wednesdays on expiration Friday week using the month we are in. After Wednesday we move over to the next month.
Although Gary taught us to buy out in time I rarely do so. I am too impatient.
