yep, trading options and charts are intrinsically linked. I buy underlying securities in companies that I believe in the fundamentals of. I think PLS will be a great long term dividend stock so I hold it in super and personally. I trade the direction of PLS using charts and options. The fundamental outcome is what I invest in, the direction is what I trade, charts show direction so I use them. Hopefully that clarifies why I posted the options in the charts thread. I’ll post the last options thing now and then just go back to charts without detailing trades.
The BHP calls that were of concern started the day as August $46.01 which are a European (set exercise date) series. I opened them at about $1.60 after having closed a July 20 $45.50 contract for 1c which had been sold at 35c. Bought back at $1.13 so about 47c profit plus the 34c on the start so at 81c since July 4 or 5 when I opened the $45.50. As you can see from the trading confirmations they were closed out then the $48.00s were bought and closed for 21c profit, now at $1.02 per share total. Finally I opened a $47 series as well for $2.13 so total income on 6720 shares of BHP is $3.15 per share since the start of the month on a parcel I paid $45.10 for. I have been using those profits to re-position things with PLS in particular. If BHP hits $47 and I’m exercised then my actual return is over $50 a share. I have similar things going with PLS as well.
I don’t always know what the exact price is traded at as I spend a lot of time either fishing or walking around the paddocks at home. Yesterday I spent most of the day skateboarding with my 4 year old on the driveway. I just ring my broker, we have a chat about strategy, I then make decisions based on what the chart looks like and away we go. My first option trade was in 1994 on MIM, as an 18 year old I thought I was pretty sharp, I lost every cent on that trade… losses teach GOOD lessons! As you can see from that confirmation statement I traded at least 3 times on 1 stock so at least 3 phone calls, there’s 2 pages of confirmation
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