This was one of the first discretionary positions I opened after returning to the market. I was reaching a bit and tried to force my way into this trade by buying at the end of that ‘flattish’ base that transpired during most of February. This is not a typical pattern that I trade, but so far it has worked well enough. Since my entry into the trade was atypical, I was kind of at a loss as to where I should take profits. Obviously my timing was a little premature as this one broke out the day after I took some off. Hey, at least I didn’t sell everything.
I opened this position at the start of the day on 2/28, so I was able to pick up that breakout prior to it taking place. Like $DIS, my entry into this trade was not my usual style, so my sale of contracts on 3/6 was also made in a state of confusion/uncertainty. Now, the setup that formed last week was right up my alley, so I jumped into the July calls at the 31 strike. At this point I’m content to watch and make liquidation decisions based on price action in the coming days, but so far, so good.
I just opened this position last Friday. I rarely buy out-of-the-money options (which this was at the time of purchase), but this pattern was just too tempting and there weren’t really many other alternatives. This one is starting to make me a little nervous, so it’s on watch for a trimming.