A personal finance blog about trading, investing, and other wealth building strategies. Learn how to trade options, get trade ideas, and make money online from home.
Well here's an example of hogs get fed pigs get slaughtered... after booking a modest 35-40% gain on my MCD calls. I decided hey I'll keep it going by picking up 2 more yesterday before the markets closed just because I knew that MCD would beat earnings. I was right about the earnings beating expectations by 1¢ (actual 98¢ expected 97¢) BUT wrong about the sell-off on the news situation and most investors decided to focus on the 8% decline in revenue attributed to their exposure abroad and how the weak dollar affected their bottom line. Oh well those contracts are now somewhere between 20¢-25¢ but the good news is that I exercised risk management and only down about $130... I can live with that lesson.
Well here's an example of hogs get fed pigs get slaughtered... after booking a modest 35-40% gain on my MCD calls. I decided hey I'll keep it going by picking up 2 more yesterday before the markets closed just because I knew that MCD would beat earnings. I was right about the earnings beating expectations by 1¢ (actual 98¢ expected 97¢) BUT wrong about the sell-off on the news situation and most investors decided to focus on the 8% decline in revenue attributed to their exposure abroad and how the weak dollar affected their bottom line. Oh well those contracts are now somewhere between 20¢-25¢ but the good news is that I exercised risk management and only down about $130... I can live with that lesson.
ReplyDelete