Closed First Position

Today I closed my short position in APC(April 35 Put) by Selling to Close @ $1. The reason I did this is because the position moved against me initially when I wasn't patient enough to wait for confirmation from the MACD and time decay began to eat away at my potential profits. I'm still very bearish on this stock so I'm going to roll forward, which simply means that I'm going to buy another option of the same underlying stock but in a different month. This is done to avoid time decay.Account balance after this transaction is $1288.02.

My exit strategy is pretty much that same for APCQG as it was for APCPG with one minor difference. APC broke through the 38.2% Fibonacci level that we calculated last week(38.98) with pretty good momentum. I will hold off on setting a sell order for now and just monitor the stock as it approaches the 50% level(37.44).

Here are the details of the roll action: Purchase(Buy to Open) 5 contracts of the May 35 Put(APCQG) @ 2.00. Commission was 16.74. Total Transaction: $1016.74


Before I could finish writing this blog entry APCQG went to 2.10/contract.

Current Account Balance: $1321.28