…to be lucky. I have placed sell orders that initiate a market order when the bid hits my 3% profit target on the stocks from my seasonality strategy. Today, $ICLR opened with a large gap up, and my order was quickly filled at 22.30 (a full 18 cents below the opening trade). A 3.8% profit was locked in, and even better (for me), I watched as the stock cratered throughout the day, finishing off 1.54%.
Now I’m left with two positions and a nearly 4% realized gain (still a rather miniscule profit on a portfolio basis).
The gap was pure luck…I suppose that luck has more to do with the performance of this strategy than anything else…but what the hell, this is for your entertainment.
In a defensive move, I closed 1/3 of my $XLF July 14 calls at 0.61 (0.53).
Another stock that I have been following over the past 3-4 weeks is $RGR. It’s currently trading almost 40% (!?) off of the highs reached on May 1st. That’s a 40 percent drop…in a month and a half.
A tad overdone, no?
The weekly is showing a beautiful pattern right now that is brimming with risk/reward potential. 50% of the pullback is at 46.32, a full 10 points above where I purchased shares today at 36.10. My stop is around 34, but I’ll probably trim some off prior to that if prices start to weaken.
Anyway, who can argue being long guns and ammo in times like these?
My best to you all.
2 Responses to Sometimes it Pays
Nice job. Wasn’t there a commenter bitching at you that it was a “bad” idea? lol
It was said that I was (I’m paraphrasing here) ‘a perfect example of someone who is going to get their ass kicked by the market’.
One thing I’m not is naive. I’ve experienced harrowing losses and fantastic gains, but I have used those negative experiences in the past to alter my strategy so that I can guard against those events happening again in the future.
In addition, I closed out my $ETP position at 44.77 this morning for right around a 3% gain.
I guess I’ll have to wait until July for that ass kicking…