jay_beckner

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

#022 BIDU Puts Closed Profit

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Trade Details: Sold to close 3 Jun 16th Baidu Inc (NASDAQ:BIDU) 177.5 puts for $1.82 (in at $0.57 for 14 days), $539.39 total proceeds. The trade executed at 14:50:28 when the stock was moving fast within the profit range set forth at this trade's open.

Return: 193.8% after commissions

Note: That was a wild ride. Given how little money I had in the trade, I left it on despite moves from A to B and C to D (on the chart below) crushing the premium. A better sequence would have been to take ~$1.20/contract when the stock moved quickly (to point A) after my entry, then reenter after the 2-hour chart completed another bearish harmonic bat pattern. I was thinking that short-term, high-risk positions like this should be sized small and given a longer leash with respect to stops, but sharper nimble moves would certainly outperform.

Monitoring this trade while traveling for poker, this was my view of BIDU as the ADR's price moved into my target range.

Monitoring this trade while traveling for poker, this was my view of BIDU as the ADR's price moved into my target range.

During the last two weeks, watching powerful technical and harmonic forces change market sentiment as observed on the StockTwits BIDU thread, I gained invaluable experience; based on my largely technical thesis, I entered puts when most were talking up Baidu's prospects for higher prices, then closed the position as the board turned bearish.

Aside -- I placed a $0.15 trailing stop order to exit this trade. Given my limited access to pricing data, I had no idea where the options were trading but knew I had to take advantage of the favorable volatility. Holding over the weekend options expiring in 7 days, after the stock moved into my target range, would be grounds for wrapping up this little experiment.

Status: $578.33 account value, ($358.50) YTD loss

#023 BIDU Calls Day Loss

#022 BIDU Puts