The Money Tree

Trading Covered Calls & Naked Puts for Monthly Income

Update – TROW

Posted by mounddweller on February 3, 2015

Fellow Traders,

I closed my Bollinger Band (BB) trade in TROW in just one day.  You’ll recall yesterday I posted that I bought TROW at $79.10.  Today the market was up big, the DOW was up over 300 points.  Consequently, TROW hit my first target price of $81.00.  I closed my position right before the end of the trading session, selling TROW at $81.15.  Doing so gave me a one-day ROIC of 2.37%.

It is likely that I left money on the table so to speak.  I only had the trade open one day and the stock closed today near its daily high.  Thus, I wouldn’t be surprised if it runs a bit higher.  However, with the market volatility we’ve seen lately it could just as easily give it all back tomorrow.  So, I decided to pocket the very short term gain and move on to the next trade.

Regards,

Troy

 

 

 

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2 Responses to “Update – TROW”

  1. Martin said

    Wouldn’t be better if you just placed a stop limit order at your target and let the stock run? Right now it is selling at $82.32 and it may go higher to the upper BB or just a mid point.

    • Martin, yes I frequently let my emotions get the better of me and thus a mechanical buy and sell system would probably improve my results. However, that being said, in this case I’m still happy with the gain and am looking for my next opportunity.

      Best Regards,
      Troy

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