I've closed my February bull put spread on ORCL with the stock price down 2.2 percent from where I opened it. Altogether, the position was open five calendar days.
I opened the position on a gap past resistance the day after a bull signal from Person's Proprietary Indicator. The stock has been in an upward trend since last October.
My decision to sell came after the shares fell below very near-term support. After I sold, a bear signal appeared on the chart. Had I bought immediately on the bull signal, today's sale would make the trade pretty much of a wash. Buying after the gap ensured a loss.
The options spread was structured as two puts. I sold the 27 strike price, and bought the 25 strike for a net credit. The options loss, after today's net debit, was 21.1 percent.
Topic: Oracle
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