I learned the 20% strategy from somebody that came to the hmgp board, took 20% and moved on. I can't remember the userid but had a nice collection of member marks. Had his signature wanting accredited/sophisticated investors for the business he was starting. Has his own board.
Here's the trades I started with just to let you see what I'm doing, only 1 contract each since my first trades. I didn't do well with my exits.
Bought 12 May xbarf ebay Jun $30 put for $1.08 and sold 2 Jun $1.25. next few days was over $2.00
Bought 14 May CRA citibank Jun $22.50 put for $.87 sold 29 May for $1.10. next few days went over $2.50 and ended about $3.00
Bought 14 May mxqfv mdrx Jun $12.50 call for $.55 and then sold 3 Jun for $.35 since I thought it was sliding down. Next day the stock jumped $1.00. I'm not doing anymore calls during this market.
These are the ones I started doing 5 and 10 contracts each and where I actually put all of my tax stimulus money in and started making the real gains.
Bought 5 Jun QJPSW for 95 cents and sold 6/10 for $1.35. Currently $2.35
Bought 9 Jun HBCSP for $1.40 and sold 6/12 for $2.55. Currently $4.50
Bought 6/12 TEXSK for 80 cents and sold 6/25 for $1.00. Currently $11.00. This is the one that really got away.
Bought 6/13 HBCSO for 85 cents and sold 6/26 for $1.25. Currently $1.30
Bought 6/10 LTDSW for 80 cents and sold 6/27 for $1.00. Currently $1.63
Bought 6/13 AUESG for $1.00 and sold 6/30 for $1.40. Currently $2.00
Bought 6/30 TIFTH for $1.70 and sold 7/7 for $2.50. Currently $3.30
Here's the trades that I currently have open. qqqts, rjfte, dovti and aeqtu. I'm about even on those from when I bought them but the trend line is still holding so I'm just sitting on them for the next few weeks.
Basically all I'm doing is going to clearstation's tag and bag area (graphs in bulk) and finding stocks that have the moving averages crossing. Then I make sure the other indicators confirm the trend. Then I find an option that gives me more than 30 days but better if about 45 days before expiration. I find one that I can afford 5-10 contracts (for now until I have more $) that's close to being ATM or just ITM. Then I put in a GTC order at 20-40% or so gain and let it sit. I work an 8-5 job so I have to just let the GTC do the work for me.
I'm doing ok on my picks. But obviously by the current prices, I'm not doing well enough on my exits. I'm leaving a ton of gains on the table. I need some help in this area. I probably need to hold longer than just my 20-40% area but I don't want too much risk by getting close to the expiration or holding too long when the trend turns.
