I have learned my lessons over the last few days, a big loss of a day, then turn to red the next morning and a big gain for the day. Finally lost all my profit on Monday. I talked to Yee and we both agree that I should go back to my old profitable way.
What is my old way, a collection of short term options that are move than 30 days before expiration. One time I had 11 positions! Each of them churn out little bit for me and my account was once at 6.5k which is 70% gain in 2 weeks.
I was so proud of myself yesterday when I looked at SLB and hesitated, something was not right. I buy options when the stocks is going higher, I don't usually but them when they are going down, because I don't know where the bottom is.
SLB has been performing for me, and I consulted the coach from Investools. He said it looks mighty fine too. I guess maybe he has some positions. But before I click, it did not feel right. Therefore I let it go. Instead I sold a Bear Call 115/120 on X, I know full well that I won't go very $115 by June 15. And got the 230 Call on GS.
Today I saw SLB broke the old resistance at 80.5 in the morning I clicked and got TWO July contract. I felt so good, seems like all the stars a lined up for the next SLB run.
GS finally turned some profit for me, I don't know why I am sticking with it.
Bought back the Bear Call on X when it is dangerously close to 115, it looks like everyone is nice and happy again and the market should rally for a couple days. So I close the position and made $90.
Without a lot of analysis and deep thoughts, I did most experts did. I hedged the market but entering a Bullish and Bearish position. I watched as the market goes up, GS goes up and the X spread goes down and vice versa.
Don't know what the earnings will be for GS, but if it goes to 220 again and returned to an uptrend, I will definitely get bullish again with it.
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