GOOG - My first foray!
Google has been on my watch list since I started looking for good trades again. It’s got a lot of great healthy signs and yesterday closed over its 7 day moving average after touching down to it’s 30 day MA. It’s still trending upwards, the company has good fundamentals and shows a healthy trading pattern.
I’m breaking my own rules a bit with the risk involved in terms of the percentage of my account to risk with any one trade, but my trading account is really small right now, so my risks will be a bit bigger than I like. I’ve justified this by telling myself I’m going to be depositing more money into my trading account soon, so my ‘real’ risk is a little lower.
Here are the details of this option:
GOOG (Google) underlying $418
Support $402 (Recent Low)
Risk $16
Option: Sept 09 Call 430 Strike @ 16.10 Delta .44
Option Risk: $7
Acct Value: $~4000
Risk Percentage = 17% (OUCH!! Don’t do this at home kids! That’s just for one contract $7×100)
I probably shouldn’t even be playing in google at all with this account size, but hey, what can I say. I’m in a slightly better financial position now than 2 years ago when I started. Even though my trading account size is small, if I lost it all, I have some cash in savings that is set aside for investing and investing education so that’s my justification.
Resistance $448 (Recent high)
Suzanne @ June 26, 2009