Option Sell to Close DLQRE

Our DLQRE options were sold near the end of the day today at $1.20. We made 4% on this 4-day trade. We wanted to get out of this trade as soon as possible (without incurring a loss) since we had lost so much of our leverage when it was originally purchased. The $1.20 limit order was set earlier in the week.

The main points learned from this trade are:

  • Never submit a market order prior to the opening bell if there is a significant chance of abnormal trading on the security.
  • When trying a new strategy (try to) paper trade it first. On the Dell option we ignored 2 of the fundamental indicators (macd and stochastics). Given the number of opportunities that come about, there is no need to compromise these indicators for the trade that motivated opening this option play.

dell1.gif

Leave a Reply

You must be logged in to post a comment.