WTW….trimming the fat (basis)

WTW Anatomy of a Trade


This is why I love option trading. Nothing is cut and dry and loss isn’t a loss until it’s realized. This was the path I took from an 80 basis to 58 in 3 months. All the calls were carefully sold at levels around the current basis to protect from losses in the event of a huge whipsaw (or buyout). 🙂 🙂

Aug 6: Jade Lizard blown out to the put side on the implosion
Aug 7: Immediately sold additional weekly calls at the open
Aug 8: Sold more weekly calls against the Lizard puts
Aug 9: Sold atm calls in anticipation of weekend put assignment
Aug 11: Assigned stock over the weekend
Aug 17: Sold fairly safe calls as an oversale against the stock
Aug 30: Rolled covered calls down and out staying atm
Sep 5: Sold calls slightly itm
Sep 21: Rolled calls again staying itm
Oct 5: Rolled calls again staying itm
Oct 10: Another atm call sale
Oct 26: Rolled calls down and ditm for max earnings protection

Still rolling along. Hoping for one more drop on earnings to around 58. That would complete a huge topping pattern. Bounce there or drop to 40 after that. We shall see. Thanks Sue for the nice comments down below. Coming from a seasoned trader it’s very encouraging!