jay_beckner

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

#012 SLB Calls Closed Loss

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Trade Details: Sold to close 2 Dec 17th Schlumberger Ltd (NYSE:SLB) 77.5 calls for $2.55 (in at $3.85 for 2 days), $503.94 total proceeds. The trade executed at 15:26:18 when the stock was approximately $78.43.

Return: (35.1%) after commissions

Note: After making the mistake of not closing the SLB weeklies late yesterday, when short-term trade was going against, I decided to close this position. That was a contributing factor, but the primary reason was the break in trend for the MACD histogram (see chart below).

The MACD line failing to cross the signal line adds risk (as does initiating the position in anticipation of that occurrence). It's possible that this trade reverses next week, but the trend line and 200-day moving average below seems to be having pull.

Oddly, the shares traded on close show two prices: $78.66 and $79.88. For the MACD histogram to continue to diverge, SLB needed to close at $79.40 or above. For the MACD line to cross the signal line, a close above $79.75 was necessary. This will be an interesting dynamic to watch on Monday.

Status: Account $1,461.50 | Q2 Return (61.8%) | Q2 Goal 59%

#013 SLB Calls Expired

#013 SLB Calls