$19,513.00 and The FED

Well I’m sure that you’ve heard by now that the FED cut rates by 0.5% today. The market didn’t tank but it did take back the gains it had earlier on the day.

S+P 500 -0.29%
DJIA -0.25%
NASDAQ -0.31%

Anytime an Options trade has a gain of 50% or greater we either take the profits there, or adjust. How we adjusted was we dropped our short strikes. That then left us “Blind” or “Naked” with all of our Long Calls.

We gave up $2,207.00 on those short strikes
The total of our longs today was $21,720.00
Subtract the $2,207.00 from that and we get $19,513.00 in profits

So yes, our initial Options investment that we placed just last Friday, Sep 18, 2024 at 130pm EST for $11,632.00 we closed today for a profit of $19,513.00.
What I personally love about this trade was how tremendous of a return it produced while using such low risk.

This isn’t the first time we’ve ever done this, and unless I get hit by a truck or eaten by a polar bear it won’t be the last. As I type this I’m reminded how superior investing with Options is over just buying stocks. They aren’t even in the same ball park. Check this out as we exited today once CAT’s price hit $360.00……..

Heck just the 350’s alone were worth $11,150.00!!!!!!!!!!!! 360 is where there is some Resistance, the 370s still hold some Options OI but we had already caught the mass majority of the move, no need to try and get greedy, we can always re-enter on fresh breakouts. That is a HUGE part of our strategy.

We’re watching Small Caps here, and one stock worthy of our attention is our old friend GE. For those that have been reading theoptionscoach.net for a while they know that we are fans of GE, and that we like stocks that rise when others drop.

The market needs a minute to digest todays action, we have had some good gains lately, this wasn’t some mad sell-off, not even close, more like profit taking 101. And that’s what we did, and will continue to do as we move forward. Tomorrows another day

The Options Coach