RIMM was hit pretty hard but the uptrend is not yet broken. I won't sell the RIMM option unless the underlying stock falls below 59, which I doubt will happen. On the upside I will sell as the stock approaches 70.
AA is up 4% in premarket, so I will more than likely sell the week leg of that trade which is the April 6 Put(AAPJ). I will realize a loss on the Put the but the Call(AADK) is up, so a profit is still made. All in all, The AA straddle turned out to be a bad trade because it didn't make the big move that I was expecting. Hopefully my next earnings play will work out better.
Below are my transactions so far for the week:
Balance as of 4.7.09: 1734.36
I will also post my balance at the end of the day to show how easily money can swing and also since all of my positions are currently up in premarket, the above balance is not an accurate depiction of the acct balance.
You said yesterday was the beginning of earning season, can you elaborate? Also are there any other "seasons" to be knowledgable about when day trading?
ReplyDeleteCorporations must report earnings 4 times a year, once per quarter. When they report these earnings, they can either beat analyst expectations or not. If the company beats expectations then you will often see a jump in the stock price. I am Bullish this earnings season because the bar has been set so low for most companies so I am expecting most companies to beat earnings. Depending on what you are trading you may also want to be familiar with holiday seasons for retail stocks(Apple for Ipods, Best Buy for tech stuff), Calendar seasons for agriculture stocks(like commodities, fertilizer - POT, MOS). Technically I have not been day trading in this account. I would be considered day trading if I made more than 4 buy/sell transactions in a 5 day period. Day trading also requires a minimum equity of 25k.
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