So the early market mood was negative. In the morning the markets were down and the Indices were all pointing down. However around 11am CST some hope started showing. After reading online sentiment that it is turning I decided to treat it as such.
This doesn’t matter in terms of my trade. I had already some 10 Nov 27 Calls on MSFT at 0.59 from yesterday. I was assuming it was low enough and would go up. It was around $23.xx per share. However, today it was even lower. This caused my options to lose value. This mornings fall caused more falling in the options price. I decided to average down at .50 with 8 more contracts. Needless to point out that Nov calls wouldn’t expire until Nov 22nd and as such were not losing time value. If left alone, without averaging down, they would still be profitable. However, I would have to wait until they did. This way, the trade is cleared, the funds settled, and conservative gains locked, and few more days in Oct. to use Zecco’s commission free trades.
Total cost average for 18 contracts was .55. I had set a limit order for .62. Towards, the end of the day the markets rallied and the MSFT went up. The options ran up and executed.
Total profit: $126.
Current balance: $1138.02.