Friday, June 7, 2013

Seven positions closed

Today's reversal to the upside in the broad markets gave me an opportunity to close seven positions that had given exit signals in the past week or so.

Four positions showed a profit: BIIB, GOOG, SBUX and XHB. Three showed a loss: CP, HAL and PSX.

The way I trade, a signal means that I exit a shares position immediately, but getting out of hedged positions built from options requires a more tactical approach. (See my recent posting "How I exit hedged positions".)

I've updated the initial entry postings on six of the positions with outcomes of the trade, both the change in the stock price and my return on risk for the hedged positions.
In addition, I also closed my SBUX position. For some reason I entered that position without posting an analysis; perhaps the position was was grandfathered after I entered using different trading rules. Here's the outcome:
SBUX gave an exit signal on June 5 and I closed the position on June 7. Shares gained 8.5% during the period I held the position. I rolled the position once and added to it several times. The share gain from my basis was 3.3%. I structured the position as vertical credit option spreads, which produced a 16.4% gain on risk.
Two positions have given exit signals but remain open: TSO and WY.

References

My trading rules can be read here. And the classic Turtle Trading rules on which my rules are based can be read here.

Disclaimer
Tim Bovee, Private Trader tracks the analysis and trades of a private trader for his own accounts. Nothing in this blog constitutes a recommendation to buy or sell stocks, options or any other financial instrument. The only purpose of this blog is to provide education and entertainment.
No trader is ever 100 percent successful in his or her trades. Trading in the stock and option markets is risky and uncertain. Each trader must make trading decision decisions for his or her own account, and take responsibility for the consequences.

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