EXPE

Bought 5 Jan 182.5 calls @ 9:52 of EXPE Used the gap lines I had placed in 8 chart from 1/04 plus 50 moving average pushing it higher. Put in a .50 move. Out at 9:56 with $625.00 profit. Note white candle starting at 9:51 on 21 shows no bottom wick. Momentum was in the upside. Full move up in EXPE was at the open. Been trading ROKU and FB most often.

Thank you for sharing. What do you think was the underlying reason the stock gapped up like that?

Awesome trade Darcy.

Do you always buy options in the money?

There was a time when I used to purchase out of the money options. Just like GW says though. If you buy out the money options the first move in the stocks price won't show up in your options price. Especially if you buy something like 2 or 3 strikes out of the money. Do you find that to be true also?

R

flsupraguy "What do you think was the underlying reason the stock gapped up like that?" I don't try to understand any underlying reasons. I merely use moving averages to tell me if a stock will go up/down and to about where it will go. Remember Bollinger bands are also moving averages. The gap for EXPE on 5 chart happened on 1/12/22 and then consolidated. That gave me the clue that this was going in either direction the next day. On the open when EXPE closed the gap and rode the Bollinger band UP I knew I was in great territory for $'s and that's why I bought 5 contracts.



Edited 1 time(s). Last edit at 01/18/2022 08:53PM by Darcy3.

RichieRick "Do you always buy options in the money?" Yes. I expect to be out of my trades in about 1- 2 hours so why buy out in time? Yes, I found it a waste of my money to buy out in time because I do not trade "to hang in there". I fully expect to be out of my trade quickly. If you are trading using earnings or splits, then buying time makes sense. I do not use weekly's (hate them) and more often than not I do not trade on expiration Friday or the Monday after unless I really see something. Today (1/18/22) I bought 5 FB 320 put contracts @ 10:36 for $5. It was really one of my harder trades because FB had already moved so much. However, I believed I could pull a profit in the trade because of the moving averages. As soon as I got in the trade, I was up $125.00 but I could see based on the 8 chart and 20 moving average AND that NASDAQ was getting slapped big time I could ride this trade for at least .50. I put in a GTC for $5.50 and was sold out at $5.75 at 11:32. I trust my moving averages.



Edited 3 time(s). Last edit at 01/19/2022 09:53AM by Darcy3.

PS... I removed how I would have traded NVDA for the long trade buying out in time off an 8 chart from a close. I felt it needed to be separate from how I traded FB. I stated that I would have traded off the fact that on the 8 chart the 50 moving average blocked a high point even though there was a long white candle on 1/18/22. I would have bought a PUT for the following month. After the close NVDA went down and currently it is up. You can see why I do not like trading long term. By trading a short period of time I would have already or would be close to being out of my trade. Currently there is nothing I would be in right now. I still believe this market is in a down trend. My long-term trade would be flat and I would be disgusted! Update at 11:13 my trade is finally making money.



Edited 3 time(s). Last edit at 01/20/2022 01:56PM by Darcy3.

Yep NVDA since I posted above has moved $40 down. Market is running scared today. From what I see thus far DOW's heading to 31,800. Thats what I see at 10:13 1/24/22.