At pre-market, it was reported that QCOM lost a lawsuit against BRCM. The stock lost more than $1.50 at pre-market. When the market opened, the stock gapped down but it later tried to fill the gap. I expected the stock to weaken. The attempt by the stock to fill the gap just provide a better opportunity to enter.
Referring to the chart above, at A, I bought Jan 37.5 Put option @$0.60 after the stock showed reversal. The stock did go in my direction but it then reversed and filled the gap. I should have closed my position at loss at point B. However, I was distracted by someone who wants to talk to me. I should have loss a fair bit. As if the market want to reward me for my patience, the stock reversed back in my direction. I doubled my position at point C, as I am very certain that the market will continue moving in my direction. The average cost of my Puts was $0.61.
I sold my Puts @$0.80 at Point D for a $19 per contract or 31.1% profits. Well, the Put option increased its value by another $0.10 after I sold my Put. But I am still thankful for what I get.
- PersianCat04 (Millionaire-in-progress)
(P.S. I did not play one contract only for all my intraday play ;) )
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