Live: Monday, December 2, 2019

12:25 p.m. New York time

I’ve entered a shares position in MGRC for a $73.04 debit and in MOMO for a $37.35 debit.

12:05 p.m. New York time

Shares trading:

No changes to my momentum portfolio or my income portfolio.

In the upgrades and revisions portfolio, RH has dropped off the screen. However, I shall hold it through the earnings announcement after the closing bell on Dec. 4. Two new positions have shown up on the screen, MGRC and MOMO. I shall enter positions on both today.

11:40 a.m. New York time

Friday, as I’ve noted, was management day, the day, 21 days prior to expiration, when I exit all profitable positions. Because of the Thanksgiving Day holiday, I moved my management of positions to today. And…. There’s nothing to manage.

Both of my remaining short iron condor positions are unprofitable to a large degree at the moment. The percent of maximum potential profit is in negative territory, -124.8% for APA and -63.8% for XOP. Both are in the energy sector. APA remains within its profit zone at expiration. XOP is below the zone.

At this point my APA and XOP positions go into sudden death mode. This means that I exit a position when it shows a profit, no matter how small.

My rules also require that I exit losing positions whenever they are more than a day away from profitability based on the rate of change metric. I’m modifying that rule this time, as a an experiment. I’ve gotten the impression with some trades that I would have had better results — smaller losses or a return to profit — if I had waited until the week of expiration to exit.  After all, time decay continues to work in my favor, and a lot can happen in three weeks. So my plan is monitor the losing positions, exit if they become profitable, and otherwise hold them until the week of their expiration on Dec. 20.

By Tim Bovee, Portland, Oregon, December 2, 2019


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 decisions for his or her own account, and take responsibility for the consequences.

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