jay_beckner

I play poker and trade options, seeking edges from study, reflection and analytics.

#013 SLB Calls

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Trade Details: Bought to open 10 Nov 12th Schlumberger Ltd (NYSE:SLB) 80 calls for $0.50, $510.36 total cost (23.4% of account), 2 days to go. The trade executed at 10:44:49 when the stock was approximately $80.00.

Potential: Unlimited, but I am eyeing the $80.30 level by today's close to verify my short-term thesis.

Thesis: This trade is closely related to the longer-term SLB calls that I put on yesterday. I am looking for the MACD line to cross the signal line on the daily chart tomorrow (with a close at or above $80.30 today). I added this short-term position to capture additional profit from the anticipated move.

The short-term technicals at the time of this trade are running counter to the comparatively bullish technicals on the hourly chart.

The short-term technicals at the time of this trade are running counter to the comparatively bullish technicals on the hourly chart.

Note: This trade is part of a strategy to use short-term options to capture moves supported by daily technicals, working off of existing positions. Having watched it develop for several hours, I must admit that it was not the most disciplined entry (from a short-term technical basis). I am having some doubt as to whether the stock will close above the key technical level mentioned above, even as the stock trades in the $80.20's. If SLB trades negatively into the close, I will consider exiting the position.

#012 SLB Calls Closed Loss

#012 SLB Calls