Option Sell to Close UVART

Today a limit order at $2.20 sold us out of the UVART position, resulting in a 100% return in 2½ days. The limit order to sell was placed the same day the option was purchased (Monday), since a 100% return seems to be a significant enough move where any more may result in an over-extended position, unless the news is exceptional to justify it, which in this case it was not. No doubt the record drop in the markets today, with the Dow Jones having a loss of 214 points, the worst in three years, accelerated our strategy. To compare, NVDA dropped 4.0%, whereas the NASDAQ on which it is listed dropped 1.5%. News agencies attribute the widespread sell-off to the consumer price index rising 0.6%.

2 Responses to “Option Sell to Close UVART”

  1. jashmenn says:

    I am curious if you have any favorite stock software to analyze your potential purchases. Do you use web-based tools, like yahoo finance, exclusively? Or do you use any desktop-based applications?

  2. Our favorite stock analysis software is an ASP called the Investor Toolbox. This is our primary source for searching for stocks, conducting fundamental and technical analysis, market commentary, and a number of other tools. It’s a subscription service, at around $50/month, after taking a required $3k 4-day course.

    The only desktop application we use is a simple spreadsheet program for building ROI tables based on option tables, to help select an option contract.