If you thought June was tough, July tested your patience. While US-China tariff headlines and earnings dominated the newswire, one trade saved our month... in a big way. Sometimes one trade is all you need.
The Agony or the Glory
We took 14 trades in July. 4 winner, 9 losers. And 1 trade that could make a grown man cry. What do I mean by that?
Well, one trade stopped a few people out and then hit big. I mean reallll BIG! Leaning on the side of being conservative, I assumed everyone was stopped out although I know for fact that wasn't the case. But we'll get into that in a second.
First, take a look at the bar diagram I created to illustrate each trade during the month of July. They are in the order we put them on.
When reading this chart, the light grey bar is the range of the option during the life of the contract. The red and green bars are the average gain or loss by OptionsGeek members. What should be clear is that we aren't waiting around for the Options to expire worthless and we aren't catching the highs. We play for the middle. As a member you will learn exactly how to do just that.
July's Saving Grace
One big winner again saved the month. NTAP puts scored a 500% gap open winner on its earnings announcement. Remember, a 500% winner makes up for ten 50% losers. Simple math. Here are further details below:
Let's talk Target. Look at this chart:
What the data doesn't take into account is that the entry price for the trade was likely better than $2.30. The stock initially went higher on the day of the trade allowing members to get in better. The early August move in the stock took the options down to around $0.90. Now, $0.90 is close to the stop level. Did people get stopped?
Some did. And after June and early July, I wouldn't even blame people that took quick stops. But the reality is that I got many thank you emails for TGT after earnings. Some members scored big. I didn't count it in the results as a winner. I took the loss not to make a bad memory worst for members who were stopped. These types of trades happen. And it will happen again.
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