Hey Guys,
The market is still holding its ground. The S&P 500 is around 4,025 this morning and has proven unwilling to relinquish the 4,000 price level thus far.
I picked up some new positions today. I bought shares of PNC and KHC in the main account. I bought options for KHC in the options account.
I had a couple positions hit stoplosses this morning: the SJM stock position from my main account and the SJM options position from my options account. It almost seemed surprising since January has had nearly all wins for us up until now. But it's actually typical for there to be losses. It's part of the trading experience.
My stock position on SCHW changed dramatically in value overnight. The reason is that they announced earnings before the market opened today. That can cause price volatility for a stock.
Sometimes that price volatility can be a good thing, and sometimes, like today, it can cause the stock's price to go down. The research I did for this trading strategy suggests that when an earnings announcement overlaps the trade, it might actually achieve higher average profitability for the trades over the long haul. But it comes more volatility. So there is a tradeoff there.
If you have any questions or feedback, I'd love to hear from you.