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What market should I shoot for?
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<blockquote data-quote="ManyHorses" data-source="post: 59443" data-attributes="member: 1016"><p>Olllie,</p><p></p><p>Similar to what I said in my 12/22 example... </p><p></p><p></p><p></p><p>If the market approached your strike, you wouldn't set there and let the market run over you... You'd buy back your Call and move it up out of danger enough to eventually get to keep the Call premium paid to you.</p><p></p><p>Now with the Call premium nailed down at expiration, you will either have made or lost money locally... most likely with that kind of market move you would have made money... That plus the Call premium paid to you became your real selling price.</p><p></p><p>If the market went down from its original position you were protected for the first 3 cents to the downside... your breakeven would have been the local cash price at the time less the 3 cents premium kept by you.</p><p></p><p>You'll find I'm always about MANAGING RISK AND NEVER ABOUT SPECULATION... You have to continue managing that Call after you establish it. </p><p></p><p>If you don't, you'll be like Custer's calvary shooting their horses, and staked to a ground position the Indians ran all over them... <img src="data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7" class="smilie smilie--sprite smilie--sprite3" alt=":(" title="Frown :(" loading="lazy" data-shortname=":(" /> <img src="data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7" class="smilie smilie--sprite smilie--sprite15" alt=":cry:" title="Crying :cry:" loading="lazy" data-shortname=":cry:" /> :???:</p><p></p><p>Richard</p></blockquote><p></p>
[QUOTE="ManyHorses, post: 59443, member: 1016"] Olllie, Similar to what I said in my 12/22 example... If the market approached your strike, you wouldn't set there and let the market run over you... You'd buy back your Call and move it up out of danger enough to eventually get to keep the Call premium paid to you. Now with the Call premium nailed down at expiration, you will either have made or lost money locally... most likely with that kind of market move you would have made money... That plus the Call premium paid to you became your real selling price. If the market went down from its original position you were protected for the first 3 cents to the downside... your breakeven would have been the local cash price at the time less the 3 cents premium kept by you. You'll find I'm always about MANAGING RISK AND NEVER ABOUT SPECULATION... You have to continue managing that Call after you establish it. If you don't, you'll be like Custer's calvary shooting their horses, and staked to a ground position the Indians ran all over them... :( :cry: :???: Richard [/QUOTE]
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What market should I shoot for?
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