Paper Trades Report for Sep 20, 2018
As soon as the market opened, all strong stocks started moving higher. Sell to close signals for $CRM and $HCA Call positions, that were opened yesterday, came early in the morning. Since there were no substantial pull back system generated one Buy To Open signal for $HAS.
Following table gives details of all the trades initiated and closed today.
Our trading rules for short term trades using ATM options are as follows:
- Be very conservative to open an options position.
- Once a position is opened, be very aggressive to close open position to avoid value erosion due to theta decay or Implied Volatility (IV) collapse.
- Position close signal gets generated based on following criteria:
- Day’s high price is hit OR
- When accumulated profit is > 20% OR
- End of the day OR
- If held overnight Followng day high Irrespective of gain/loss