AI
Friday, May 23, 2014 7:33:34 PM
First paper trade position update. I figured since others update each other, I thought I would share and add some notes. Hopefully I continue to do so on a weekly basis.
I'm only holding one position during this first paper trade. I simply just wanted to get my feet wet if you will and did not want to overwhelm myself with several positions at once. This one position has kept me quite busy actually. I have been studying and taking notes on how I can become a better option trader. I bought Parexel International Corporation (PRXL) based on the foundation of technical analysis I have had from the past and making a strategy out of it.
I have a general strategy, but it still needs plenty of tailoring and testing on many items. For example, the entry point with this position could have been better timed. May 12, 2014, I had bought at the top when looking closer at the chart. Sure, a cheaper premium of .30 following the next two days does not seem like much. However; with option trading .30 can add up. This equals to $30 which could have brought the Gain/Loss to $110. I'm sure I'm preaching to the choir, however I just wanted to share because long-term investing has never had me fretting over pennies on the dollar with precise entries.
I'm still holding because I believe that the technicals are still appearing to be strong. Besides a untimely entry, stepping back I believe the larger trend will be profitable. I believe (PRXL) could reach a PPS in the range of $51 before expiration currently, however this is subject to change as the chart continues. I believe (PRXL) could reach a PPS in the range of $58 within 2-3 months, however this is also subject to change as the chart continues. I saw this potential before buying the position and would have bought a call with a longer expiration; though I was not satisfied with with the liquidity, open interest and/or Deltas of other options.
You can find the link of me posting the first paper trade below.
Link: http://investorshub.advfn.com/boards/read_msg.aspx?message_id=101848381
Thank you for reading, Gulley
I'm only holding one position during this first paper trade. I simply just wanted to get my feet wet if you will and did not want to overwhelm myself with several positions at once. This one position has kept me quite busy actually. I have been studying and taking notes on how I can become a better option trader. I bought Parexel International Corporation (PRXL) based on the foundation of technical analysis I have had from the past and making a strategy out of it.
I have a general strategy, but it still needs plenty of tailoring and testing on many items. For example, the entry point with this position could have been better timed. May 12, 2014, I had bought at the top when looking closer at the chart. Sure, a cheaper premium of .30 following the next two days does not seem like much. However; with option trading .30 can add up. This equals to $30 which could have brought the Gain/Loss to $110. I'm sure I'm preaching to the choir, however I just wanted to share because long-term investing has never had me fretting over pennies on the dollar with precise entries.
I'm still holding because I believe that the technicals are still appearing to be strong. Besides a untimely entry, stepping back I believe the larger trend will be profitable. I believe (PRXL) could reach a PPS in the range of $51 before expiration currently, however this is subject to change as the chart continues. I believe (PRXL) could reach a PPS in the range of $58 within 2-3 months, however this is also subject to change as the chart continues. I saw this potential before buying the position and would have bought a call with a longer expiration; though I was not satisfied with with the liquidity, open interest and/or Deltas of other options.
You can find the link of me posting the first paper trade below.
Link: http://investorshub.advfn.com/boards/read_msg.aspx?message_id=101848381
Thank you for reading, Gulley
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