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Finally a Profit! - FLIR

Profits, Trailing Stops

I guess this is part of learning how the real market (as opposed to the paper market) works.

I purchased a long call option on FLIR 7 days ago. The first few days showed little in the way of gain or loss. On Black Friday, with the market open for only a few hours, I had a few dollars profit on the single call. Things were looking good.

I had not yet set a stop loss on the purchase (proabably a mistake). Today, when i saw that I was up 40% on the option, I decided to put a stop loss in place so as to not repeat the mistake I made with HANS (losing a 35% profit due to greed).

So I set a trailing stop of 15 cents on the option.
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This afternoon, I see that my trailing stop was triggered at $2.70, and my option finally sold at $2.50…another 20 cents loss for a total of 35 cents off the days high (up to that point).

In the final tally, I still profited, but it’s hard to see your profits slip away like that.

Here’s the final summary

FLIR Jan Call 75 100 shares
11/21/07 Bought @ $1.90
11/28/07 Sell @ $2.50

Total profit .60/share = $60
31% gain in 7 days.

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Suzanne @ November 28, 2007

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