I often receive emails from subscribers who missed my recommended price asking if they should trade at the current price.
It’s a good question. My answer is this: I make the initial trade recommendation by laying out my “thesis.” It’s then up to you to decide if it’s a good enough idea to make the trade. And if so, how much capital you want to allocate to the trade.
After I make the recommendation, I watch the option like a hawk. For instance, yesterday when I recommended that you try to sell your XLF puts for $0.58, I saw a couple of thousand puts sold for around $0.53 in the minutes after my Alert went out. That is totally fine by me.
Then this morning, when I said to try to sell the XLF puts for $0.55, I saw another couple thousand sold for around $0.52 a few minutes later. Again, this is totally fine by me. It’s your money, and you have to make these decisions for yourself based on your feel for the market and your investment goals.
In fact I’ve gotten several emails in the past couple of days from subscribers who were still holding their EEM puts, telling me they are now up close to 350% on them. I mean this sincerely, that makes my day.
So as of now, I’m going to continue to update our XLF position as a full position. I bought the puts a couple of days ago for $0.41 and they are now at $0.43. While I’m disappointed we missed our price twice in the last couple days, I still like the trade.