The Apple December $130 call trade ended with the stock declining and the option price hitting the stop loss price. Some reasons for the trade ending are below.
- KDK Options money management policies are designed to make sure that we are always able to capitalize on opportunities. This requires a specific design towards stop loss policy when a legitimate opportunity slips into hope territory.
- The likelihood of a rally past $130 by December 18th was greatly diminished by the stock falling below $120.
- The weekly chart showed a candle top last week with a strong red candle this week.
- While still bullish on Apple in general, the December time frame for the trade required a consistent bullish move which yesterday's action removed.
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