The following trade alert is for October 24, 2008.
Placing the Order: Practice proper money management and allocate a percentage of account equity you feel comfortable trading. Select a contract with minimum 55 days to expiration, Open Interest 30 times the number of contracts you wish to trade and Delta greater than .25.
Closing the Position: Immediately after the order is filled, place a OCO (One Cancels Other) order to sell. We recommend placing a GTC order at our defined Limit and Stop.
Once the stock reaches our Take Profit, we have two options. 1. We can close the position out completely. 2. We can sell half our position and then place a Trailing Stop order for the remainder.
Overview: RIMM is currently trading at a low that makes it difficult to ignore and we have received a buy signal from our indicators.
The Trade: Status: Closed Symbol: RIMM Options Symbol: RFY KK Month/Strike: Nov 55 Call Contracts: 1 Target Entry: $1.75 Limit: $4.75 (take profit) Stop: $.85 (stop loss)
Order Details: Contracts: 10 Buy Price: $1.63 Cost Basis: $1641.45
Sell Date: 11-04-2008 Sell Price: $3.60 Cost Basis: $3611.45
Gain/Loss: $1970.00
Note: Remember, always follow proper money management and abide by all trading rules. Do not get greedy and remain patient!
