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November 6, 2012 / redman59

Submitting Orders the Old Way and Closing Trades in $AAPL $IBM

Going into Friday I was long $IBM and long $AAPL both with option spreads in which I have time-lined in my blog.  In my Thursday post I stated that I would be absent Friday and on Friday I was able to check my phone intermittently when in transport from one hunting spot to another.  Around noon, while having some lunch, I saw that not much was going on with the $IBM position.  I decided that I would just close the position out realizing half the gains I had before I adjusted, but followed my adjustment plan.  Also I didn’t want to be assigned 100 shares of $IBM as the 195 Weekly Call were in-the-money, so this needed to be closed.

This is where the glitch occurred.  When I went to close the position through my thinkorswim phone app, it kept shutting down unexpectedly.  Of course the one time that I need to close it out this happens.  So I had to go the old route of calling your broker (always have a back up plan) and I will say it was quite flawless and easy.  He gave me the natural (bid) & mid price.  I told him to come 0.05c off the mid (quoting 2.18×2.30) and put my order there as I would expect an immediate fill given the liquidity of $IBM and penny increments of their options.  I was immediately filled.  Trade history is shown below, realizing +$15 on $211 of risk (+7.11% per 1-lot).

Today I went ahead and closed out my $AAPL Diagonal that I have been adjusting around since I put on for earnings.  My overall gains were not what they were but still gains that I was happy with.  This is another one that took a hit on Friday and saw my gains quickly become a losing position, but still holding technical level I was watching.  This morning it caught a gap up on news of their iPad sales with the launch of the mini.  Not liking the action on Friday and recent action altogether I decided that I wanted to exit this position ahead of elections & its ex-div date as I think action will be more of a mental drain than anything else.

I watched the first 30 minutes and where the Diagonal Spread was trading (mid price) on the high of that 30 minutes.  I then placed an order at that price (which was 23.50) to close the position thinking that the first 30 minute high would get taken out.  Well as $AAPL would have it, it kept to its recent M.O. and saw selling, going below the opening range.  I then adjusted my order down 0.10c as this should be filled if we tested those highs again.

We then saw buy support after it near filled the gap and then my position got filled near the end of the day on the late day push.  I was happy to see the fill and now could care less where $AAPL goes, even though I may miss out on better profits.  My mental capital is now preserved into the elections as I am flat positions.  My overall gain was +$213 on max risk $2920 (the initial Diagonal), +7.30% per 1-lot.  Trade history shown below:

I now have no positions and I am quite content with that.  I believe intraday volatility will pick up with elections and I more content without positions right than if I had some on.  I am still in the mindset of trading less and keeping the overall portfolio risk low.

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