Wednesday, June 19, 2013

My Options Account on June 19th, 2013, Part 1

The overall market is flat today in anticipation of the Fed decision that will come out at 2pm EDT.  My options aren't as flat.  It hasn't been a good day so far.  I wanted Google to go down today and they were down early but now Google is up about 4.  Apple was down $3 and Net Flix was up 5.50.  Basically what I didn't want to happen is happening.  My main concern is focused on Google.  I am holding on because I still believe the stock will drop a good amount by Friday from where it is now.  I am expecting a "sell on the news" later this afternoon.  Let's see if I am correct.  My account balance was down $1,158 just a few minutes ago and now I'm down $1,027.  This is a huge day for me and the decision and market reaction will be key later today.

One Trade I would recommend today is:

Buy GOOG 925 Call and Sell GOOG 920 Call for a credit of .47.  I'm doing this trade because I don't think Google will continue going up the rest of the week.  Its currently at 904.82 so it would just have to stay below 920 for a nice 9.7% gain.

** Update at 11:25am CDT.  Google has decreased and is now only up .68.  My overall account balance is still down but only down $330.  Let's keep this up.  I'm looking for a large positive day. 

Jonny

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