Hey Guys,
The S&P 500 is still hovering around the 4400 mark. It's still in the middle of a range and overall is pretty quiet relative to what we've seen in earlier parts of 2021.
My account is up this morning. My ORCL options hit their profit target, and I closed both my AAPL stock and options positions for a profit due to hitting their time limits.
I also picked up a position on ZTS. This is another earnings day trade that was volatile out of the gate. There have been a number of these lately, but in the big picture they're actually pretty rare. Since it was on the watch list, I had a buy limit order set up for it before the market opened (I set it at the "Potential Entry Price" specified on the watch list), and it filled within several seconds of the market opening. I want to point out a couple things about these stocks where the price goes up right away after I buy them:
1) Don't forget that there are stocks that go straight down after I buy them too. PEP did that yesterday. So it definitely goes both ways, and I did a study that suggests that you might end up with net profitability that's comparable to mine if you follow each trade I make, regardless of whether it's down or up by the time you get to it.
2) After about 10-15 minutes, the price had gone up maybe 40% of the way to its profit target. That's not typical in the big picture. That may have "felt" high, and like it was too late to buy it. But as of the time I'm writing this, now it's about 80% of the way to its profit target. Just because it's gone up doesn't mean you missed the boat. I have a lot of data supporting this. It doesn't mean that there isn't risk, but it certainly doesn't mean you missed an opportunity to profit.
There is another ticker that set up that I did not buy because I didn't have enough purchasing power. It was TT (Trane Technologies). It's a perfect setup, but I just barely don't have enough cash to buy it. I'd buy it if I could.
It's a bit weird being limited on purchasing power with just five stock positions. That PEP position is really heavy and is weighing me down, but also a lot of stocks have low volatility right now, which causes them to eat up more purchasing power with my position sizing approach. As of right now I can fit in one more light stock position, but otherwise I'm waiting for an existing stock position to close before I buy another one. I have room to buy plenty of options though still since they are so light from a purchasing power perspective.
Note about MNST -- they are supposed to report earnings today after the market closes. The price might get volatile! It might go way down or way up. If you don't like the sound of that volatility, then you can consider exiting the position at some point today. I'm going to stick to my plan like always and hold it until it hits either my profit exit, stoploss, or time limit.
If you have any questions or feedback, I'd love to hear from you.