Had a slow start this morning. What do u expect on a Monday.. :P Despite the kinda late start, I was able to enter my trade just in time to catch a good move with the current.
Here's how things looked on the hour chart..
Market was in Bull mode.
Zoom in a little and here price was in bull mode, retraced for one candle, and was back to the climb..
I didn't wait to long, just had to wait for just a bit of bearish price action, in order to get my order filled. (I always ask for .05 MORE than where the market is at) Sometimes, this causes me to miss an entry, but 80% of the time it works within minutes, or I just adjust my order or delete it and try to enter at some new price.
I even asked for just .35 this time, since I am adding 1 contract now and wanted that prime delta 10 strike,
Of course, the trade was immediately underwater, (almost always this is the case) but here's what I was thinking..
On hourly I saw that the longer trend was still bullish. The 100ema at the bottom was also showing a bullish slope. The current Price was showing some ranging action, but as long there was just as much up as there was down, things should remain pretty much where it was and I would win the trade just on time decay alone.
Fast forward to 9am (power hour)
I guess some big bull(s) were also tired of the range action, so they pushed HARD just before power hour started!
This put my trade nicely at defcon 1.. the delta 5 position..
About 30 minutes into power hour, price was moving around.. it seemed like some bears were fighting hard..
Even though price was at a little worse level than when I had entered the trade, thanks to time decay, and other factors, there was little chance price would drop all the way down to my strike..
my p/l was lookin good..
delta was still at a good level
Look at this last show of dominance by the bulls at the end!
As if to get the last word, the bears did take the last candle, although to wreck my trade, price would need to fall way way down.. there was only a .01% chance of that happening.
Last word.. since I am now letting the trades run to expiration, I get to trade (hopefully) 5 days per week, instead of just 3. I also save on fees because there are NO closing trade fees for expiring options. These are not much.. about $2 per contract.. but today it saved me $6 and imagine if/when i am trading 10+ contract at once. :)
So it looks like this trade worked out well for you, congrats on the profit!
Been a while since I traded options. I thought if it expires then you've lost your investment in that option? Or is someone obligated to buy your position when the option expires? I don't even know if my question makes sense or if I'm asking it the right way. Been a Long Time and I don't remember too much about how options work!
Yay! 🤗
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