USAK

[Triplethought]

I was on the earnings call this morning for USAK. They posted outstanding results, and the stock briefly popped into the $12.29 range. Then, as sometimes happens with "earnings surprises" it kind of crashed back to it's yesterday's levels. I sold both the stock and the Call option as the peak was coming down. While I made a nice profit on the stock, lost $150 on the Call option. I viewed it as "minimizing the loss". Obviously, this was an example of not waiting for SOL's exit at $14.50 or at least the $12.50 strike price.

I'll be interested to see if I pulled the trigger too quickly. Arguably the stock may run up from here. But my reasoning on the Call sale was that with only 2 months to run I couldn't see why the stock would climb substantially more than after a great earnings report.

I'll be happy to be proven wrong on this one so I can learn for next time.

[MarkD]

Maybe the play should be to extend expiry three months? The stock has a habit of climbing and dumping hard.

Attached is a monthly view.

https://ibb.co/7GJ6jqx

[Triplethought]

Maybe the play should be to extend expiry three months? The stock has a habit of climbing and dumping hard.

Attached is a monthly view.

https://ibb.co/7GJ6jqx

I suspect that's exactly why SOL chose it.

I've heard about extending expiry - doesn't this involve just selling one call and buying the next (as separate transactions?)

[AstuteShift]

You can always sell puts, it’s like collecting rent if the stock zigs sideways or goes higher.

As you evolve as a trader, then you see the beauty in SOLs plays. Majority if not all are very good low risk to high potential returns.

[Tamsenw]

I stick with Sol. His track record is unbeatable!

[AstuteShift]

I stick with Sol. His track record is unbeatable!

The enlightened Jesse Livermoore

[SOL]

There is a very tough zone of resistance in the 12.30 to 12.70 ranges. Once it breaks through that zone, the fireworks could be quite explosive. The stock is also trading in the oversold ranges on the weekly charts and has room to run on the monthly charts, but this stock is highly volatile so we will be monitoring the situation closely over the next few days. if the need arises we might roll over to the July calls. Rollover implies selling the current calls and using the money to purchase the July calls.

Overall the pattern is still bullish

[gnosis12]

I stick with Sol. His track record is unbeatable!

I am in total agreement. Sol is in a league of his own, what's rather remarkable is that despite all his great skills inside and outside of the markets, he refuses to be called an expert/guru/ etc.

For the record, I was almost tempted to sell, glad i did not as i am up almost 60% on these calls and the stock is very close to striking his lower target.