I don’t know what to say. Okay, so in this article we’re going to be doing a trade recap, nothing too crazy for you guys here. I got everything drawn out already to try and make this as quick as possible. It was a one thousand seven hundred and fifty dollar profit, but it shows one thousand one hundred and twenty here because of the fact that I got into the trade yesterday I held the trade overnight, meaning you know I got in it yesterday I held it today.
That’S what it means, but I had a profit on it yesterday when the market closed, that profit does not transfer over to the P L day, because PL day means that the profit loss of the day. So today I made 1120 but technically I was in the trade this trade made 1750. I just wanted to explain that idea. So nobody goes out and panics and you starts thinking. Oh my God he’s lying. You know the world okay.
So before I get into breaking down the numbers and everything I’m going to very briefly touch base on why I got into the trade, because these are just trade recaps, guys, meaning I’m just trying to recap a trade hey. This was my trade. This is what I did you get what I mean, but, and I try to make them quick articles when I make them quick articles. People start nagging and complain like. Oh my god, I didn’t teach me anything like alright.
Guy go to go learn from where I have designed. I designed a course to teach you for specific reason: I’m not going to make a 15 hour article here just to teach you in one article. So that’s that obviously, then, when I do try and teach you guys some things in the articles and I try and give some old things here and things there little hints and all that and try to teach you guys there. Then people start now.
Oh my god. He’S rambling too much. You talk too much just get to the point you got in here. You got out there, so it’s like I’m trying to make everybody happy here in a world that we know we cannot make everybody happy. So that being said, why did I get into the trade number one? It was one of my like morning, momentum, slash day trading strategies that I specifically teach the way that I teach my course and I’m not saying this to advertise my course I’m just trying to explain to you guys why this is the way it is the way I teach my course it’s like I’m teaching you how to fight.
I say hey. If your opponent swings at your face there you go now. You know how to duck. Then I say, oh when your opponent leaves his face open like this and his arms are out to the side, go swing from the uppercut. That’S that that’s the I teach them how the market works right. I said when his hands are down: go right across them with the right hook. Those are we teaching you how the market works right.
The course teaches you how the market works. Then it also gives you strategies, meaning it teaches you how to do all this stuff. On your own, but it also gives you very specific parameters and strategies that are like combos. If you will it’s almost like saying, okay well, when he swings at you you’re going to dunk, but then you’re also going to come up with the uppercut and then he’s going to go, grab his face and you’re going to come with the right hook.
That’S the strategies, so this was one of the strategies. Obviously I’m not going to explain the whole entire strategy here, because then I have to explain the whole course. So hopefully you guys can bear with me and not complain this time as to why I’m not giving the whole entire detail here, but long story short, it’s one of the strategies that I teach in the course. If you took the course you know what happened here.
You boom bada bing bada boom. Hey, you know, that’s number one. It was one of my specific morning. Momentum strategies, number two. Then you go out a little more. We are right at this key level of 200 here. Not only is it like a key like resistance level and it’s also a key level in general, but it’s also a psychological level. So all these things multiple different flashlights here, guys, that’s what I say when a robber a thief wants to go and break into your house in the middle of the night, while you’re out of town and rob your house if he only takes his cell phone flashlight.
What’S he going to find nothing really you’re going to find your huge TV on the wall, but let’s say he puts a headlamp on your head or on his head. We can put one on your head too. I guess um then he’s you know. Yeah he’ll find the TVs on the wall, then maybe he might find your laptops your computers. Now let’s say he takes a huge handheld floodlight with the phone light and the headlamp now he’s going to find you’re safe, the more flashlights you have, the more chances of success you have in a trade.
This is just multiple flashlights, so it was also one of my day trading strategies. It was also a very key level. All that tied into one is why I got into the trade, so my main idea was: I was trying to get into it around the 200 level. You know we gapped up and kind of pushed right to, but then we dropped real quickly. I missed it. A little push right there and it just dropped too quickly. I missed it and I’m not going to chase the trade at the one 9750, I’m not going to get in that low.
I figured all right at that point might as well just let it go, but thankfully it popped up again and gave us another reentry. I didn’t know because I’m not God, I can’t predict the future. I didn’t know it was going to go all the way up here again, my entry level, my entry target where I wanted to get in that was around the 200. I thought I missed it, so I got into the pop at 199 and that’s that guy’s now I explained it.
Nobody can nag that. I didn’t say anything in this article about why I got into the trade and that’s where I got into the trade now so now, let’s go break down the numbers, so we’re trading options. Here I want to put this out there, for the people that are new options are just we’re still trading stocks pretty much, but options allow us to do a lot more with a lot less there’s two types of option: there’s calls and puts puts means you make Money when the stock goes down puts is what we did this time.
So as the value of the stock decreases, the value of the puts go up. I’M just mentioning that, because there were some people that commented on my last article like dude, how did you make money if the value of the stock was going down? I don’t get it guys. I mentioned this before and then when I mentioned this anyways okay, so I got into the trade 6:35. Yesterday I had puts I had 14 of them. It shows 3.
60. The way options works. What is equivalent to a hundred, so it’s not 3.60 into 360. I had 14 of them, so we’re going to multiply 14 times 360. That gives you five thousand and forty, so the whole cost of the trade was five thousand and forty. That does not mean that we’re risking five thousand and forty. If we were wrong on the trade, that does not mean I was going to lose five thousand and forty I like to use a used car example.
I always say: hey you buy a used car for five thousand dollars. Thinking you can sell it for six thousand dollars. You find out. Something was wrong with the car you found out. You bought the wrong model, whatever it is, you’re not going to just throw the car away you’re, not just going to leave it on the side of the road forever and give it to someone else. You’Re just going to go, send it to the junkyard, go sell.
It take a small loss, that’s the same idea here. So when I say we, the trade cost 5,000. I’M just saying that to let you know that that was the initial investment. That was what was required to place the trade, not what we’re risking here. So I try to put that idea out there to show you guys like wow. This guy is trading a one hundred and ninety five dollar stock, but he only put five thousand dollars in and he somehow made 1,750.
That’S why I emphasize these ideas, it’s mainly for the new people out there as well. I have a lot of people, new people that read my articles, so that’s that so cost of the trade 5040. Then I held it overnight and at 6:34 this morning I sold a portion of the trade about a third of the trade. If you will, I sold four of the contracts at 470, then about 25 minutes later I sold another four of the contracts at 5:30 because of the fact that I did four and four, it’s an even number they’re balanced – and this is a very even number 470 And 534: seventy is point thirty away from five.
Five. Thirty is point thirty away from five, so we can basically average them out and that’ll give us five. So we technically sold eight of them at five hundred each then the final six that I was holding, I sold about an hour and a half later at eight thirty, eight, four, four sixty five. So let’s do the calculation there real, quick! These two right here, equal five, eight of them at five hundred each, so you do eight times five hundred.
That gives you four thousand dollars. If you want to break it up, if it’s easier for you like that, you can do four times. Four hundred and seventy, which is one thousand eight hundred and eighty, then you can do four times five hundred and thirty, which is two thousand one hundred and twenty you add them together. That’S four thousand anyways, so these two were for four thousand that we sold and then we sold the last of them for four hundred and sixty five times six, which is two thousand seven hundred and ninety.
So we’re going to add that 2790 to the four thousand from here that gives us a total of six thousand seven hundred and ninety, so we sold the total for six thousand seven hundred. So, back to the used car example, you bought the used car for five thousand. You sold it for sentence for six thousand seven hundred in the next day. That’S basically the idea here, so we sold it for six thousand. Seven hundred and ninety we’re going to subtract the cost of it to get the profit, so the cost was five thousand and forty so subtract, five thousand and forty from the six thousand seven hundred and ninety.
And that’s where you get one thousand seven hundred and fifty that was the total profit 1750 on Baba here, although it shows one thousand one hundred and twenty it’s because we had like a six hundred dollar profit yesterday, when the market closed, as I held it overnight And believe it or not it even gapped up man if we open down here at this one. Ninety, oh, my goodness, if we gapped down to one ninety, that would have been like man like a six to seven thousand dollar profit, at least I’m not even exaggerating guaranteed, it would have been more than five thousand, and that’s what I mean when I say you Know what stick to your trades? Don’T go too big on your side.
Don’T go tray chasing these huge profits, stay within your relative plan and your trade and all that and eventually, every now and then you’ll hit these big profits. You know, of course it wasn’t. One of that those scenarios here, but it could have been by hey whatever we don’t worry about that. Let me break it down for you guys on the chart here and then we’ll wrap it up from there. So I got in here, as I mentioned, I was reading it around that 200 area.
I got in like we’re what 199 maybe 199 twenty five ish as the value of the stock went down. The value of my put option increased, so I was able to sell it for more. This is where I initially got out of for right here. So we gapped up and even went a little higher right back to the 199, but I didn’t panic out. You know I stuck to my plan and then it dropped down to this 196 and I said alright, let me lock some in just to be safe.
Then it bounced up came back down now closer to the 195 50 area and that’s where I sold out the additional four. So those are these two orders here and now I’m holding six playing with profit to see if we can break the 195 and get potentially 194. That’S where I wanted to lock it all in it and at the same time I had lower to my stop. So I basically said: okay, if we go above the 196 50 now I’ll get out, it would have still been a profit, obviously not as much of a profit, but you know that would that would have been my way of locking in and protecting gains to make Sure that no matter what happens that this trade would have ended up profitable and it actually did hit the 196 50.
Let me let me go over that real quickly right here. It barely pierced through it and it actually hit my alert though I had trade. I don’t sit here this whole time through. Like all this, I just kind of let those sit, and I I play it. I put alerts, alerts basically say hey if the stock gets to or above or to or below this level. Let me know and notifies my phone said thing they, maybe I can go in and close the trade out.
It did that right here by the time I pulled my phone out, we were back down here. I said: okay, well, you know what we’re technically, not above my level. Let me still hold it then, and then after some time I check back in on it and my ri dude we keep hitting that area. We keep testing that area. I look back on spy and I’m like, oh my god, dude this guy’s flying and I don’t want to deal with it at that point I said: oh, I just cut it before it hits my stop-loss.
It technically did hit it back here, anyways. So that’s where I cut the rest of it out right here and of course my luck had decided to drop down more. So if I was still holding it, it would have been at least like a 2200, maybe 2500 all the profit. But who cares? We? Don’T worry about that guys we locked in our 1750 dollar profit. I made a little bit of a mess out of the trade, but it was still profitable and that’s the main reason why I wanted to do a article on this particular trade.
It’S cuz. I did kind of make a little bit of a mess on it, but at the end of the day we still made money and that’s really all that matters, as I like to say. As long as the outcome has income – and that’s pretty much that guys – I have a feeling that I’m going to start rambling at this point. If I say any more, so we’re going to wrap it up. Hopefully you guys enjoyed this article. I’M going to put a link in the description to our website in case you do want to join us in our chat room or our read list, or if you do want to learn how to do this stuff yourself.
I’Ll put the link there as well make sure you follow me on social media, who’s Basanti on Instagram and Twitter, and that’s it guys I’ll, put links in the description, we’ll wrap it up here. Hope you guys enjoyed. It hope you guys have a great rest of your day, great rest of your night. However, it is just have a great rest of your life and I’ll talk to you guys soon.